With an increasing number of leading organizations globally utilizing video training – 90% of corporations today use video training on a frequent basis compared to just 4% in 1995 – now is the time to make the case to your stakeholders and justify the value of investing in video instruction.
It can be difficult to properly measure ROI when it comes to video. It’s not as clear cut as determining the success of a sales department, however, by setting goals, utilizing analytics, analyzing costs, and using an ROI formula, you can see what success actually looks like.
What are the Benefits of Video Training Programs?
When determining ROI it’s necessary to weigh the benefits of a training program. When it comes to video training, there are invaluable advantages. Video training:
- Reduces cost. With video training, companies are able to save on travel, training specialists, hotels, and meals required for in-person training.
- Reduces training time. Video makes it possible to scale training globally, accelerating a company’s ability to deliver key messages through reusable, employee-friendly online training. Using Panopto’s search function, employees at Ingersoll Rand were able to quickly move between video training sessions to answer questions they had while skipping over sections they were already familiar with.
- Addresses employees’ needs. 95% of employees prefer eLearning because they can learn at their own pace, while 84% prefer it because they don’t have to travel.
- Improves accessibility. With video training, it is easy to implement accessibility-friendly features such as captioning and screen readers.
How to Measure the ROI of Creative Video Training
How do you actually measure ROI? There are a number of different methods that you can use depending on your organization. The general formula to determine ROI is (investment gain – investment cost) / investment cost x 100. The higher the ratio, the greater the benefit.
Gains measured should relate to how well the objectives set were achieved – for example, how many employees completed a particular module with a score of 90% or higher. Costs could relate to the costs associated with creating the video, distribution costs (if any), time spent by employees creating the content, and any outsourced work. If training videos are used repeatedly to train a number of different employees, this can be taken into consideration as cost savings.
Here are four steps to measure the ROI of creative video training.
1. Set clear goals for ROI and determine measurable gains. What problem is the video training trying to solve? This could be anything ranging from increasing employee productivity to reducing compliance issues. Use the formula above to measure the gains achieved.
2. Listen to your employees. Now that you have determined the company’s goals, it’s time to listen to your employees’ needs and understand how video training can help solve their concerns. Examine how well your employees are responding to video training through video analytics that can show engagement and completion rates. Embed a quiz at the end of training videos to determine employee satisfaction and how relevant they find the course material.
3. Analyze resources saved. By utilizing effective video training, the company can save not only money but also improve processes in the business. For example, it can reduce company downtime. Since video training has the flexibility to be viewed according to the individual employee’s own schedule, downtime can be significantly reduced.
4. Consider the qualitative benefits. Beyond achieving goals, reducing cost, and saving time, video training can provide additional value that can’t be measured financially. Reducing stress; making training specialists’ jobs easier through easy-to-use software and reusable videos; and providing a healthier company culture are all additional benefits video training offers and should be considered when measuring ROI.
How to use Kirkpatrick’s Model to evaluate video training ROI
Kirkpatrick’s model of training evaluation was created by Donald Kirkpatrick to assist companies looking to justify why a certain method of training should be used. This can easily be applied to video training to determine if company goals are being met and if employees are putting what they are being taught into practice. There are five interconnected levels that can determine whether a high ROI has been achieved.
1. Reaction. Assess how well your employees are responding to the training by using feedback forms, in-video quizzes, or video assignments.
2. Learning. Evaluate what your employees have learned following the training. Use a flipped classroom training assessment to provide more time for synchronous or asynchronous feedback, or an in-video quiz.
3. Behavior. Measure to what extent learners’ behavior has changed as a result of the video training and where they may need assistance. This can be determined by evaluating if learners put what they were taught into practice, whether they were aware of any changes, and if they shared their new skills and knowledge with other employees.
4. Results. Analyze what was achieved following the training. This could be an increase in productivity, sales, or employee retention.
5. Impact. Determine training ROI by taking the learning program’s results from the previous steps, converting it into a financial amount, and comparing it to the total costs associated with your video training program.
Which method should you use to evaluate video training ROI?
Depending on your company’s goals and ROI objectives, you can either use a singular training method or a combination of a few different ones to determine ROI. Try out each method and see which one works best for you – the ball is in your court.