One of the most poignant questions for a company, and one asked frequently, is how to measure the return on investment from professional training. This has often been a challenge for businesses, so it is worth shedding some light on how the ROI from training can be measured.
To a large extent, it depends on the qualification. ISP sales qualifications, for example, can be measured by an increased conversion ratio from a sales team after training. CIM marketing qualifications and CIM digital marketing courses are also measurable, through increased lead generation and customer traffic, both physical and digital. There are many other target-led key performance indicators that can be associated with sales and marketing qualifications, but these are two simple ways to see direct results from sales and marketing training.
Measuring the ROI of Management Training
A more complex question is how to measure the ROI of management training. Aside from the traditional measurement of staff retention within a company — where developing managers internally instils a sense of loyalty and reward — there is one main element that many companies forget to measure when it comes to management: employee engagement.
Improved employee engagement is by far the highest reason on the list for investing in management training. While there may be benefits to the operational side of a business, and to strategy and development, leadership and engagement are more important and more measurable. The ROI indicators above can be improved as a direct result of successful management training. Writing for Forbes in 2012, management commentator Victor Lipman argued that the single most important factor in employee engagement is the relationship an employee has with their direct manager — a relationship that strong management training is designed to improve.
This view is echoed by wider research. The Chartered Management Institute has reported that a significant proportion of staff feel their manager rarely acknowledges mistakes or apologises, while many UK managers believe they do so regularly — a gap in perception that points to a clear need for better management training among supervisors and employers. Set against the fact that many managers have received no formal management training at all, it becomes easier to see why engagement can be low, and why developing managers is so valuable.
Why Management Training Matters
A common observation is that there is no single, universally agreed skillset for management, and an assumption that everyone simply knows how to do it. In reality, many people arrive in management roles with no preparation and learn through trial and error, often finding the experience difficult. This reinforces the case that management is a skill to be developed deliberately, not assumed — and that structured training changes perceptions of what good management involves.
Developing Managers From Within
There are two ways to bring management skills into a business: promoting from within or recruiting externally. The sensible option is often to promote from within, identifying candidates who already understand the business and training them to become effective, engaging managers. This approach offers more accurate ways to measure ROI. A business can identify the potential for a personal promotion from a candidate it already knows, benefit from increased productivity across a team through successful engagement, and see the incentive to progress within the company generate another level of self-motivated and keen future managers.
An ROI, whether personal or for a company, can be found in all elements of professional training, depending on how it is delivered and how it is received. Ultimately, ROI is an assessment of value for money, and having trained, motivated and developed team members is a worthwhile investment for any company. In the same way, personal development in any area is desirable for anyone looking to grow and develop their chosen career path.
How Professional Academy Supports Your Journey
Measuring the return on training is far easier with the right qualifications behind it. Professional Academy has over 27 years of experience delivering measurable professional training in marketing, sales and management. Whether the goal is to develop a whole team or individual key team members, structured qualifications provide both the skills and the measurable outcomes that demonstrate ROI. To discuss group training in marketing, management or sales for a company, or individual qualifications for key team members, explore the CMI management qualifications, the wider professional qualifications, or speak to the qualification advice team.
