{"id":37629,"date":"2022-03-17T14:51:35","date_gmt":"2022-03-17T19:51:35","guid":{"rendered":"https:\/\/visualsp.com\/blog\/calculating-roi-for-microlearning\/"},"modified":"2024-07-24T10:20:09","modified_gmt":"2024-07-24T15:20:09","slug":"calculating-roi-for-microlearning","status":"publish","type":"post","link":"https:\/\/www.visualsp.com\/blog\/calculating-roi-for-microlearning\/","title":{"rendered":"Calculating ROI for Microlearning"},"content":{"rendered":"

I talk about various types of learning methods quite a bit in my work and the following question usually comes up:<\/p>\n

How do I know if the learning we are providing our employees is actually paying off?<\/span><\/em><\/p>\n

This is a perfectly legitimate question that we should be asking for any type of learning we provide to our employees. I mean why would you want to invest in something that cannot be proven that it's paying off right\u2026?<\/p>\n

Calculating ROI for a traditional Macrolearning event<\/span><\/p>\n

Before we talk about ROI for Microlearning, let's start with Macrolearning first - for the sake of comparison.<\/p>\n

How would you calculate a Macrolearning event<\/span> like let's say a one full day synchronous training<\/span> you conduct for your users on Dynamics 365, Teams, SharePoint or other Microsoft Office 365 apps?<\/p>\n

Since Macrolearning is a one time event<\/span>, you are calculating a one time cost and then determining its impact during a set period of time to calculate the return on that investment (usually within 1 or 2 months of the training event). As long as the return (benefit) of your total investment (cost) is greater than 100%<\/span>, you come out ahead.<\/p>\n

<\/p>\n

ROI formula for Macrolearning<\/em><\/div>\n

 <\/p>\n

The formula for calculating ROI of Microlearning<\/span><\/p>\n

Since we at VisualSP deal specifically with Contextual Microlearning<\/em> methods of training, we wanted our customers to understand the ROI of their Microlearning efforts.<\/p>\n

Just to be clear, Microlearning refers to any form of short and concise content<\/span> such as short videos, walkthroughs, tooltips, reference sheets, annotated images, etc.<\/p>\n

The formula for calculating Microlearning is more complex because Microlearning is never provided in a one time event format<\/span>. It's an ongoing effort<\/span> where you are producing Microlearning content and your users are consuming that content within the flow of their work.<\/p>\n

The easiest way to quantify the benefit of Microlearning is by calculating the time and money savings<\/span>.<\/p>\n

The time usually of the person who is struggling to find the answer And the time of the person who has to provide the answer to that person.<\/p>\n

The money savings is calculated by understanding how much money is saved when you don't have to pay a support person to answer the same questions from users again and again and again (which by the way, no one likes doing anyway )<\/p>\n

Having said the above, here are the formulas for calculating your ROI for Microlearning<\/span>:<\/p>\n

<\/p>\n

Lets look at an example of a company with 10,000 employees.<\/span><\/p>\n

Microlearning assets accessed in 1 month = 5,000<\/span><\/p>\n

Number of hours saved in productivity<\/p>\n

(5,000 * 15) \/ 60 = 1,250 hours<\/span><\/p>\n

Money savings in productivity<\/p>\n

1,250 * $26 = $32,500<\/span><\/p>\n

Dynamic presentation of ROI is key<\/span><\/p>\n

Since calculation of ROI for Microlearning is a moving target, I believe it is of utmost importance to be able to have a dynamic presentation of the ROI<\/span>. That's the only way you would be able to prove if your Microlearning related efforts are working or not.<\/p>\n

In our VisualSP<\/a> software, we calculate these figures dynamically so it's always reporting on the ROI for the contextual microlearning at the moment in time<\/span> as shown below.<\/p>\n

<\/p>\n

Presentation of ROI for Microlearning<\/em><\/div>\n

Does the above all make sense? If not, let me know. I would be glad to explain the thinking here and would love to hear your feedback as well.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

I talk about various types of learning methods quite a bit in my work and the following question usually comes up: How do I know if the learning we are providing our employees is actually paying off? This is a perfectly legitimate question that we should be asking for any type of learning we provide […]<\/p>\n","protected":false},"author":7059,"featured_media":37634,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"cta":[],"class_list":["post-37629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/posts\/37629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/users\/7059"}],"replies":[{"embeddable":true,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/comments?post=37629"}],"version-history":[{"count":2,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/posts\/37629\/revisions"}],"predecessor-version":[{"id":39428,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/posts\/37629\/revisions\/39428"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/media\/37634"}],"wp:attachment":[{"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/media?parent=37629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/categories?post=37629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/tags?post=37629"},{"taxonomy":"cta","embeddable":true,"href":"https:\/\/www.visualsp.com\/blog\/wp-json\/wp\/v2\/cta?post=37629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}