Shifting the Paradigm: Return on Expectations vs Return on Investment in L&D

Lauren Goff
L&D Specialist
Shifting the Paradigm: Return on Expectations vs Return on Investment in L&D

Imagine a world where the success of a learning program is not defined solely by the money invested, but also by the expectations set for it. This is a world where learning & development (L&D) professionals are no longer solely focused on the return on investment (ROI), but also on the return on expectations (ROE). In this world, L&D initiatives are not only measured by the bottom line, but also by their impact on an organization’s culture, employee engagement, and overall growth.

In this blog post, we will explore the key differences between return on expectations (ROE) and return on investment (ROI) in L&D, and how organizations can leverage both to drive success. We will also discuss how Learnexus can help your organization find and hire top L&D professionals to support your learning initiatives.

Understanding Return on Expectations (ROE) vs Return on Investment (ROI)

ROI is a widely used financial metric that quantifies the monetary gains or losses of an investment, relative to the amount of money invested. Simply put, it calculates the financial value of an L&D initiative. While ROI is undoubtedly an important factor to consider when evaluating a learning program, it may not be the most comprehensive way to measure success.

On the other hand, ROE takes a more holistic approach to evaluating the success of a learning program. It considers not just the financial impact, but also the expectations and objectives that were set for the program, such as improved employee performance, higher engagement, and better retention rates. By focusing on both the tangible and intangible benefits of a learning initiative, ROE can provide a more accurate and complete picture of its effectiveness.

Why Both ROE and ROI Matter in L&D

“I have always believed that focusing solely on ROI is a narrow-minded approach to measuring the success of a learning program,” says a senior L&D professional at a Fortune 500 company. “By incorporating ROE into our evaluation process, we have been able to gain a deeper understanding of how our efforts truly impact the organization, and make more informed decisions about future learning initiatives.”

Here are three key reasons why both ROE and ROI should be considered in L&D:

  1. Aligning learning goals with business objectives: By setting clear expectations for a learning program, L&D professionals can ensure that their efforts are directly aligned with their organization’s overall goals and objectives.
  2. Enhancing employee engagement and performance: A focus on ROE encourages L&D teams to prioritize initiatives that will have the most significant impact on employee engagement and performance, resulting in a more motivated and productive workforce.
  3. Improving decision-making: By analyzing both the financial and non-financial benefits of a learning program, L&D professionals can make more informed decisions about resource allocation, program design, and future investments in learning.

How Learnexus Can Help You Achieve Both ROE and ROI

As a freelancer marketplace for learning & development, Learnexus specializes in helping organizations find and hire top L&D professionals with highly specific skills and experience. With Learnexus, your company can quickly and easily source the best talent to support your learning initiatives, resulting in both improved ROE and ROI.

Learnexus offers a 47% cost saving compared to traditional methods, saving managers time and eliminating procurement issues with a single master services agreement. By partnering with Learnexus, your organization can not only optimize its L&D investments but also enhance the overall impact and success of your learning programs.