ROI is a great way to see the tangible and intangible outcomes of different developmental initiatives a company has.
While this can seem like a difficult concept to understand and use, Rebecca Callahan, the manager at Hogan Lab, explained how to help your learners understand in A Ninja’s Guide to Personality Assessments.
Creating and proving ROI has very real benefits for any organization. ROI is very important to get buy-ins from business leaders. Hogan Lab in particular measures ROI during hiring and development.
Rebecca says it’s important to look at ROI when beginning the hiring process because it helps a leader select the right people for a role. Selecting the right person for the job has immediate benefits: increased sales, reduced turnover, and even fewer safety accidents.
Developmental is harder to show, however, but when you do, it assists executive buy-ins very easily. There are a few ways to map developmental ROI, and one such way is by collecting ROI data from individuals, representatives, and supervisors through a questionnaire. The questions asked are about the company’s development and how it will improve job performance.
ROI also helps with rating tangible and intangible business impacts. Tangible benefits include productivity and quality and are tied closely to the bottom line. Intangible benefits include things that impact company culture, like improved relationships and reduced conflict. Both of these are crucial to help an organization understand the benefits they’re getting.
Additionally, it’s important to pulse check.
The same way a doctor checks your pulse to make sure your heart is doing okay, a manager must check in with their employees to get a clear picture of how the company is doing. It’s important to check frequently, and Rebecca recommends a quarterly check-in.
A pulse check involves a short questionnaire that your manager should know ahead of time. This allows the manager to tailor their material to the questions that will be asked.
Don’t take up too much of their time. A great pulse check is exactly like a pulse — quick and to the point.
Check out some more tips for measuring ROI in our free, on-demand webinar here.