Most of us have heard of e-learning and maybe you’ve even taken a few online courses, but what does it really mean and how can the benefits of e-learning apply to your business? E-learning is a generic term for electronic or online learning. Most Universities now offer online courses and you can even earn an entire degree without ever stepping into a classroom. Most people are familiar with this type of learning when connected to a college or university but may not think of it as applying to their business. In fact, e-learning is one of the fastest growing parts of the business world because it is highly flexible and offers many options for training your employees.
How much will e-learning cost me? This is a question that most Operations Executives, HR Managers and Training Managers ask at some point. It’s not an easy question to answer since there are so many possible variables. A better question and one that can be answered with a degree of certainty is “What is the cost of NOT training?”
I’ll bet you’re not surprised to hear that the answer is “it depends”. Let’s look at a possible scenario. We’ll use as an example a growing company with 500 employees that needs an eLearning module on regulatory compliance that all employees must complete. The three options they explore are to build it themselves, to purchase a generic library course at $20.00/learner or to have a custom content developer build a highly interactive course module just for them for the cost of $15,000. They reject the first option because they wisely recognize that they lack the skills and resources they need to do it well. So, for option two the math looks simple. 500 X $20= $10,000. Clearly less expensive than option three, right? Yes, for year one, but remember, we said that they are growing so let’s say they add 100 employees a year for the next 5 years. That’s an additional 500 and an additional $10,000. So now the total investment in the library course is $20,000 and growing each year. Meanwhile the custom content is still $15,000.
In all of employee training and especially in elearning the search for the elusive ROI (Return On Investment) is never ending. Actually the search is for proof. We all know in our guts that it works. We have plenty of anecdotes, lots of strong intuition and even the odd number now and then. But every once in a while some actual facts would be nice.
e-Learning Trends 2015 No.4 Custom e-learning saves money, time and stress, we all know that. The e-learning industry has proven and promoted it for years now, but those are all tangible ways of measuring, are we considering the intangibles? ROI – Return on Investment Definition: A profitability measure that evaluates the performance of a business by dividing net profit by net worth. (http://www.entrepreneur.com/encyclopedia/return-on-investment-roi)