October 18th, 2013 E-Learning


Every company makes the majority of their decisions based on how it will impact their bottom line. If it can bring in more money, or perhaps save money, then it is considered good for business.

Why then, are many organizations still shy about implementing robust learning programs?

Elearning is a great way to positively impact the bottom line of the company, and there are many options available when it comes to formal training.

From a business department standpoint, a company can implement training in a variety of areas. For example:

  • Personal development
  • Sales & marketing
  • Human resources
  • Leadership/Management
  • Finance/Account
  • Customer service

Even focusing on creating a training program in just one of these areas can have dramatic impact on the company. Training programs can result in higher energy levels among employees, improved communication and problem solving skills, and decreased time spent for resolving issues.

It has been found that an organization with a solid training program in Finance and Accounting saw an average increase of 16.3% in cash flow, valued at 8,673 per employee.

Another training analysis showed that training geared for sales and marketing professionals resulted in 24% higher profit margins and an increase in sales of up to 6.5%.

Even a simple, yet comprehensive training program for custom service reps resulted in an improved customer satisfaction rating of 9.5%, and happy customers are reported to be 33% more likely to do more business.

There is real value in investing in a formal learning program. Too often training initiatives are considered “fluffy”, without any real impact. However, with modern data analysis methodologies, you can easily figure the ROI of a training program – and then translate that into real numbers for how it impacts the company.

In fact, one study has found that if you can invest $1500 per employee in training, you will experience 24% higher profit margins.  Even if your profit margins increased by half that amount (12%), it could still very well be worth it.

Now is a better time than ever to educate yourself about how a formal training program can help your business and improve your bottom line. Besides, if you’re not doing it, there is a good chance that your competition is ;).



American Society for Training and Development (ASTD) and Saba. Profiting from Learning: Do Firms’ Investment in Education Pay Off?
University of North Texas and Wayland Baptist University. Effects of Leadership Training on Manufacturing Productivity
Business Week Workforce Study
Federal Reserve Board of Governors & Georgetown University. Human Capital Investments & Firm Performance.
Protential Human Capital Development

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About Justin Ferriman

Justin started LearnDash, the WordPress LMS trusted by Fortune 500 companies, major universities, training organizations, and entrepreneurs worldwide. He is currently founder & CEO of GapScout. Justin's Homepage | GapScout | Twitter

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You touched upon one of the most challenging issues we face in marketing training programs and that is ROI from training, Unfortunately, many managers still view training as a cost and not an investment. I think it will be a nice idea to integrate a ROI tool in online training programs. This way we can show the decision maker or even the trainee the benefits they gained from attending the program in concrete format.

Avatar Amr Soliman

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