Quantify and Increase ROI on Training, Including Well-Being Spend in Your Company

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    Did you know that companies that invest in employee training and development have a 24% higher profit margin than those that don’t? However, to make the most out of your training expenditure, it’s essential to measure the ROI accurately.

    Employee training and development are essential for the growth and success of any organization. Companies invest significant amounts of money in training programs to enhance the skills and knowledge of their workforce. However, many organizations struggle to measure the return on investment (ROI) of their training expenditures. Measuring ROI can be challenging, especially when it comes to measuring the impact of well-being spend. In this article, we will explore how to quantify and increase ROI on all training expenditures, including well-being spend in your company.

    What is ROI in Training Expenditures?

    ROI stands for return on investment, which measures the financial gain or loss generated by an investment relative to its cost. In the context of employee training, ROI measures the financial impact of training on the organization. A positive ROI indicates that the benefits of training exceed its costs, while a negative ROI indicates that the costs of training are higher than the benefits.

    How to Calculate ROI in Training Expenditures?

    Calculating ROI in training expenditures involves several steps:

    · Step 1: Identify the training program’s costs, including direct costs such as trainers’ fees, travel expenses, and indirect costs such as employee time away from work.

    · Step 2: Determine the benefits of the training program, including increased productivity, improved performance, reduced turnover, and increased revenue.

    · Step 3: Assign a dollar value to the benefits. For example, if the training program reduces turnover, calculate the cost savings associated with reduced turnover.

    · Step 4: Calculate the ROI using the following formula: ROI = (Benefits – Costs) / Costs x 100%.

    Measuring ROI on Well-being Spend

    Investing in employee well-being is essential for creating a healthy and productive workforce. However, measuring the ROI on well-being spend can be challenging. Well-being programs may not have direct financial benefits, such as increased revenue or cost savings, making it difficult to

    calculate the ROI. However, investing in employee well-being can lead to indirect benefits, such as increased employee engagement, reduced absenteeism, and improved job satisfaction.

    To measure the ROI on well-being spend, companies need to consider the following factors:

    1. Employee engagement: Employee engagement is a critical factor in determining the ROI of well-being programs. Engaged employees are more productive, less likely to leave the organization, and more likely to recommend the company to others.

    2. Absenteeism: Investing in well-being can reduce absenteeism, which can lead to cost savings for the company.

    3. Job satisfaction: Improving employee well-being can lead to increased job satisfaction, which can lead to increased productivity and reduced turnover.


    Quantifying and increasing ROI on all training expenditures, including well-being spend, is critical for the success of any organization. By measuring the ROI accurately, companies can identify areas for improvement and make data-driven decisions.

    Contact Viveka to find out how you can automate, execute, and measure all your learning, skilling and wellbeing initiatives today. URL: Email: [email protected]


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    Katja Kempe
    Katja Kempe
    Katja Kempe is CEO of Viveka and passionate about human potential. Viveka's live-coaching and transformational learning ecosystem solves the entire Learning & Development (L&D) journey in an all-in-one destination for HR departments, employees and coaches. Katja was awarded Female Entrepreneur of the year Asia-Pacific, is a bestselling author and one of 'Yahoo Finance's 21 top founders to change the way we do business in 2021', alongside Elon Musk and the founders of Stripe, Bumble and Canva. Katja is internationally experienced, multilingual, inspired by innovation and a strong believer in creating positive and sustainable change. Viveka's mission is to make transformational learning experiences available to billions through an AI-driven platform for professional development and personal growth. In 2021, Viveka launched V-Corp, a learning and development enterprise SaaS solution to help HR departments train, retrain and up skill their employees for a new way of working. Viveka provides an automated turnkey solution for all L&D needs, assisting SMEs to Fortune 500 companies globally. V-Coach, Viveka’s coaching solution seamlessly integrates into v-Corp, allowing coaches to manage and scale their coaching business. If you’re ready to up-level your company, your business, your life…then Viveka is for you!