Should L&D experts put more effort into measuring ROI?

Learning and development (L&D) is still too often seen as a cost. With the introduction of the labor deal and mandatory registration for training, it appears once again that a lot of companies perceive it as a burden. Not only do many employers see it this way, almost half of employees see it this way as well: four in ten Belgian employees were not taking any training in 2023 and do not plan to do so in the future. Yet organizations and employees can gain many benefits from L&D and the labor deal.

Can measuring the return on investment (ROI) of L&D be a way to embed L&D as a strategic pillar within organizations?

“In this context, it’s important to dispel a common misconception”, Nico De Neve, Business Consultant L&D, opens the discussion. “Motivation doesn’t drive performance, it’s the other way around: performance drives motivation. Therefore, an important basic starting point is that L&D initiatives should be directly tied to performance improvements. If so, employees become more motivated and see immediate value in their work."

In many companies, however, employees lack clarity on their roles and tasks. This isn't because the workforce lacks capacity for learning; it's due to L&D being undervalued and underutilized. By focusing on performance-related training, companies can achieve quick wins that motivate employees and improve output.

For instance, in production settings, training may increase output by as much as 30%. Thus yielding measurable ROI and helping L&D pay for itself.

But what if multiple factors influence outcomes? Marie Clémençon, Human Development consultant, points out that attributing efficiency gains solely to training can be tricky. “If a new system is implemented alongside training, it’s challenging to determine whether improvements come from the technology itself or from training on its use.” Nico suggests that in such cases, best-practice sharing across locations can illustrate L&D's impact by comparing the performance of trained versus untrained teams.

Another common challenge is that L&D outcomes don’t always show up on the income statement. For L&D to prove its value, it needs KPIs. While it’s easier to track metrics in production environments, where ERP systems provide data on efficiency, it’s often trickier in service-oriented professions. In these cases, customer satisfaction can serve as an indirect performance indicator.

Take the example of an IT helpdesk specialist. Helpdesk staff receive training in the latest software systems, as well as in improving their remote communication skills. Afterwards, customer satisfaction surveys reflect a marked increase as clients experience faster resolution times and clearer communication. This leads to improved helpdesk efficiency, while employees feel more competent and empowered, translating into higher job satisfaction.

“By ensuring that employees know what to do and how to do it efficiently and qualitatively, you create an experience of success. This gives them the motivation to keep investing in themselves and continuously improve their performance in the workplace,” Nico explains. In that respect, L&D is not a ‘nice to have’ expense but a necessary strategic investment.

“This also goes beyond formalized training”, indicates Laura Evenepoel, Care Manager. “If an employee is motivated, they are more likely to take proactive control of their own learning. For example, researching things themselves to better perform their tasks, or actively signaling training needs and suggesting training courses.” These are all elements that benefit performance and professional growth.

Remains the question of whether KPIs are always necessary to make L&D ROI measurable.

Marie argues that for L&D to be genuinely impactful, it must be woven into the strategic fabric of the organization. “Having KPIs for L&D may be a way to ensure this”, she says. “However, even without formal KPIs, performance reviews and annual evaluations can help measure progress toward strategic objectives, especially when employees reflect on how they contribute to these goals.”

Jill Sniekers, Human Development consultant, adds that peer evaluations and 360-degree feedback can also serve as valuable KPIs. “These evaluations offer tangible evidence of growth in specific skills. By setting goals for employee growth and measuring evolution, you can also make the ROI of L&D visible.”

One essential caveat in implementing feedback sessions, KPIs and ROI measurement is that these elements can’t simply be introduced into an organization without careful planning. They require a deep understanding of your business and a clear vision of how L&D creates value for both customers and employees. In large organizations, this value creation often varies significantly across departments.

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