Whether you’re doing traditional employee training or have yet to jump into the world of employee training, the fact remains… something is holding you back from investing in online training in the first place.
Maybe you see online training as too expensive, too difficult to implement, too complicated, too difficult to measure… we get it, it looks like a big mountain to climb. But with the pace of change in the modern workplace accelerating faster than ever and the need to maintain a competitive advantage becoming a major factor in whether or not a business fails or succeeds, online employee training has never been more important.
Join us as CEO of BizLibrary, Dean Pichee, outlines why you should invest money in training in the first place and discusses how much to invest, how to determine ROI on what you invest, tips and tricks for getting the most out of your online training program and techniques for getting budget approval from leadership.
In this webinar, you'll learn:
Why you should invest money into an online training program and what the expected ROI should be
Find out how much you should be investing in training
How to get the max ROI out of your training investment
How to present training to your C-Level and get budget approval
Market Signals – Global Job Market Trends – March 2024 summarized!
Making The Business Case For Online Employee Training
1.
2. Presenting Today
Dean Pichee
President and CEO,
BizLibrary
@deanpichee
Follow along on Twitter: #BizWebinar @BizLibrary
Erin Boettge
Content Marketing Manager,
BizLibrary
eboettge@bizlibrary.com
6. Executives Want to See More Impact and Value
RANKED
IMPORTANCE
TOEXEC’S
MEASURE
LEARNING
EVALUATION
LEVEL
EXAMPLE
CURRENTLY
MEASURED
1 Impact 4 “The Accel project contributed 20%to
our reduction in error rates thisfiscal.”
8%
2 Value 5 “Within one year, the East program will
achieve a 2:1 benefit-costratio.”
4%
3 Awards 0 “Our learning program won an award from
Chief Learning Officermagazine.”
40%
4 Application 3 “78% are applying their new skills to their
jobs”
11%
5 Learning 2 “92% of participants increased their
skills”
32%
6 Activity 0 “Last year 7,800 employeesparticipated in our
learning programs”
94%
7 Efficiency 0 “Formal learning costs $2.15 perhour” 78%
8 Reaction 1 “Employees rated our training veryhigh with
an average of 4.5 on a 5 point scale”
53%
Source: How Executives View Learning Metrics by Patti and
Jack Phillips, CLO Magazine, Dec 2010
7. WHAT WEHOPE YOU’LL LEARNTODAY
Anticipating and overcoming the most common
objections from your senior executives
ANALYSIS
What is the Business Case for Online Training?
How Do I Make the Business Case for Training?
The 5 core elements of a business case
Scenario
Analysis
Cause/
Effect Analysis
KPI’s for each
benefit
Risk of the
Status quo
Align with
Org’s goals
9. Benefits of a Learning Culture
Increased efficiency,
productivity and profit
Increased employee
satisfaction and
decreased turnover
An improvement
mindset among
employees
A developed sense of
ownership and
accountability
Ease in
succession/transition
A culture of knowledge
inquiry and sharing
An enhanced ability for
workers to adapt to
change
The Risk of the Status Quo|
10. INNOVATION: More likely to be first to market
PRODUCTlVITY: Greater productivity
58%
17%
QUALITY: Greater ability to deliver quality products
SKILLS: More prepared to meet future demand
PROFITABILITY: More likely to be market share leaders
SOURCE: BERSIN BY DELOITTE
46%
37%
33%
26%
CUSTOMER SERVICE: Better response to customer needs
ORGANIZATIONS WITH A STRONG LEARNING
CULTURE SIGNIFICANTLY OUTPERFORM THEIR PEERS…
14. *U.S. Department of Education, Office of Planning, Evaluation, and Policy
Development, Evaluation of Evidence-Based Practices in Online Learning: A
Meta-Analysis and Review of Online Learning Studies,
Washington,
D.C., 2009,
revised2010.
ONLINE LEARNING MAKES SENSE
Capable of teaching the same
material in less time and reducing
the duration of class time
Addresses both formal and informal
learning needs
No need to schedule learning with a
24x7x365 solution
Reaches more employees faster and
with greater consistency
Found to be as effective as face-to-
face learning*
Cost-effective for any size audience
EFFICIENT
ADAPTABLE
AVAILABLE
SCALABLE
EFFECTIVE
ECONOMICAL
16. How We Learn
Encoding
Short-term memory, observations,
memory traces and what we’ve seen
(limited capacity)
Consolidation
Time scientists believe the brain replays
or rehearses the learning, new
knowledge next to neural markers
Retrieval
Forced retrieval is most effective after
time intervals and some forgetting has
occurred
The Business Case for Online Employee Training|
17. 50% 70%
100
ms
Of the brain is used for visual processing Of the sensory receptors are in the eyes To get a sense of the visual scene
Visually Wired Brain
The Business Case for Online Employee Training|
20. “No matter how much you invest into training and
development, nearly everything you teach to your
employees will be forgotten.
Indeed, although corporations spend billions of
dollars a year on training, this investment is like
pumping gas into a car that has a hole in the tank.
All of your hard work simply drains away.”
Art Kohn, PHD, Professor, Author and Consultant
Training Reinforcement|
21. The total amount of mental effort being used in the working memory.
Our brain can only process a certain amount of information at a time.
Cognitive Load
Training Reinforcement|
23. Space it out
“Cramming can be an effective learning
methodology if your only objective is to
pass a one-time exam. ”
Training Reinforcement|
24. Spacing out information over time rather than
cramming it into one session or a short time
period, you will improve your long-term memory.
Spacing Effect
Training Reinforcement|
27. Test learners
“Tests and quizzes do more than just
measure the amount of learning that
has taken place. Testing is a critical part
of the learning itself.”
Training Reinforcement|
28. Testing increase learning more than any other study method.
Long-term memory is increase when some of the learning time
is devoted to retrieving the to-be-remembered information.
The Testing Effect - Retrieval
Training Reinforcement|
29. Bottom Line: What Works?
Learning Bursts
microlearning
Learning Boosts
reinforcement
Training Reinforcement|
30. How to Make The Business Case for
Online Learning
32. Most likely results
Scenario
Analysis
Cause/
Effect Analysis
KPI’s for each
benefit
Risk of the
Status quo
Align with
Org’s goals
SCENARIO ANALYSIS
Best case scenario Worst case scenario
Expected Business Results and KPI’s|
33. Your training program
improves the employee’s
ability todo the job.
Scenario
Analysis
Cause/
Effect Analysis
KPI’s for each
benefit
Risk of the
Status quo
Align with
Org’s goals
CAUSE AND EFFECT ANALYSIS
The improvement hasa positive
impact on the business
The impact results in afinancial
benefit tothe company
Expected Business Results and KPI’s|
34. Employee Benefits Company Benefits Financial Benefits
Study at your own pace:
Employees have the ability stop
and start courses
Some training available to all
employees, no matter location.
Reduced costs for travel and
training facilities.
Convenience: Anytime,
Anywhere. Courses and online
resources are available to
employees 24/7
Employees can create and
manage their own Learning Plans
Simplified certification process
Employees are able to view a
personal dashboard of courses
assigned to them, view a record of
their transcript of courses
Improved visibility into learning
and performance data
- Anytime, anywhere reporting
- Built in testing and evaluation capabilities,
allow managers to easily run reports
- More customized learning plans to ensure
that they have mastered difficult concepts
Reduced time away from the
job, no missed productivity
Better control over all aspects of the
training experience through one standard,
centralized access point (registering,
approval, tracking, reporting)
- Hosted services eliminates the need for
installation into a company network
- Eliminates the cost of internal support
Increase alignment between employee
goals and corporate objectives.
37. VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT
REPRESENTATIVES AND CUSTOMER SERVICE REPS
Goal: Reduce turn around time on bug fixes from an
average of 21 days to 10 days.
x
x
x
x
x x x x
x x x x
x
x
x x x x x x x
xx x
x x
x x x x
x
Expected Business Results and KPI’s|
38. $1,155,000
80% OF THE BUGS REQUIRED A RETURN OF THE WRITTEN REPORT TO THE REP FOR CLARIFICATION.
$50 / DAY – OVER 6 MONTHS – 1,100 BUGS
VALUE:
Theexpected value to be gained ismeasured by using the average revenue
lost for each day the service isdown for customers due to sloppy or unclear
written explanations of bugs to the programmers.
Expected Business Results and KPI’s|
39. TRAINING COSTS:
Human Resources: $90,000
Reps: $300.000
Total = $390,000
VALUEADDED FROM IMPROVED PERFORMANCE:
500 reps X $600/day/rep
Access to online writing courses including time to take and complete 5 courses
each and successfully complete writing evaluations to prove increased skills. 2
HR reps needed to administer program and build writing evaluations.
IMPACT:
• Less than 10% of written reports of bugs were
returned for rewrites in 6 months after program.
• Average bug fix reduced from 21 days to 12 days.
• Total bugs affected 1,210.
TOTAL VALUE GAINED:
$544,500 ON A $390,000 PROGRAM
Expected Business Results and KPI’s|
40. Identify the KPI for the business
problems you are trying to solve.
Scenario
Analysis
Cause/
Effect Analysis
KPI’s for each
benefit
Risk of the
Status quo
Align with
Org’s goals
KPI’S FOR EACH BENEFIT
What will improved performance
look like, and how will be know?
Expected Business Results and KPI’s|
41. It doesn’t have to be complicated…
$
You have 5,000
customers
Each is worth $20,000 You increase customer
retention by 1%
THAT’S $1 MILLION
43. Training vs. No Training
Average cost for losing a single employee with an average salary of $60,000 could cost a company
anywhere from $30-45k to replace.
Center for American Progress
Consider unmet business challenges, for example: Employee Turnover
The Risk of the Status Quo|
44. A process ofcontinues adjustment to keep
the parts in their correct relative position.
Scenario
Analysis
Cause/
Effect Analysis
KPI’s for each
benefit
Risk of the
Status quo
Align with
Org’s goals
GOAL ALIGNMENT
Expected Business Results and KPI’s|
45. Will employees participate, use it etc…
Is the learning initiative relevant to our business needs?
BARRIERS TO PROGRAM ADOPTION
What are the costs?What’s the value?
Expected Business Results and KPI’s|
46. RESISTANCE SUCCESSSTRATEGIES
No Help
• Create an advisory committee
• Use a coach
• Ask supervisors for support and provide themtools
Communication
• Work with your internal learning team to develop strategiesfor
high-level and end-usercommunication
Not EnoughTime
• Focus on just-in-time learning: search and learn, jobaids
• Deliver kickoff events, blended learning, learninglabs
• Emphasize time management courses
• Create learning in progresssigns
Fear and Anxiety
• Nurture safety and trust with perceived freedom of choice
• Focus on individualneeds and help folks to see the benefits of having
online learningavailable
Not Relevant
• Emphasize on-the-jobapplication
• Understand the goals of others and ask questions: “how canyou use this
initiative to meet yourgoals?”
47. EXECUTIVE SUMMARY (1 page)
Objective sentence and bullet points on each key
element.
CURRENT SITUATION (1-2 pages)
The business challenges being addressed and business
goals to be met.
PROPOSED SOLUTION (2-3 pages)
Explanation of the solution – include a simple statement of each
expected benefit and risk assessment of the status quo.
1
2
3
YOUR BUSINESS CASE
Expected Business Results and KPI’s|
48. EXPLANATION OF BUSINESS BENEFITS(2-3 pages)
A thorough analysis of the bottom-line impact including business
benefit gains and costs of the proposed solution (ROI) EMPHASIS
on business benefits.
CONCLUSION (1page)
Executives will “bottom-line” it, so they will inevitably read
the summary and conclusion before reading anything else.
Be concise and cover each major element of business case.
SUPPORTING MATERIAL (3-4 pages)
Include key supporting material, data and research.
4
5
6
YOUR BUSINESS CASE
Expected Business Results and KPI’s|
49. Do you feel access to more training would help you perform your job more effectively?
Would you like to see <company> play a more active role in your professional growth/development?
If offered online, would you take advantage of a customized training curriculum specific to your job?
If online training was offered, how many courses would you enroll and complete this year?
YES
NO
YES
NO
YES
NO
1-3 per year
3-6 per year
More than 6 a year
Don’t know
50. 1. Don’t get stuck on ROI only. Communicate the cost and
benefit justification and strategic impact of your
training initiatives.
2. Plan and organize. Understand your current situation, where
you want to be and when and how you will get there.
3. Know the facts and risks back it up with data.
4. Communicate how your plan will benefit the overall
organizational goals.
KEY TAKE-AWAYS
51. Advanced Train the Trainer Video Series
27-part video series from
BizLibrary Productions
Video lessons include:
1. Becoming a Learning Organization
2. The New Learner
3. The Case for e-Learning
4. Transferring Skills to the Next Generation
5. Engagement vs Interaction
6. Training as a Promotion Qualifier
7. Training Payback vs. ROI
8. True Costs of Training
9. See, Know and Do Goals
10. Training Process vs Programs
52. Telling the Story - Presentation video
series
4-part Telling the Story
video series from ej4
1. The Art of Persuasion
2. Writing a Proposal
3. Presentation
4. After Approval
53. Try out these video lessons
and more!
Let us know through the poll if you’d like a free trial of
BizLibrary’s online course collection.
www.bizlibrary.com/free-trial