How can you measure the ROI of soft skills training, like leadership and communication?

1 Define your objectives

Before you start any training program, you need to have clear and specific goals. What are the desired outcomes of the soft skills training? How will they align with your organizational strategy and vision? How will they improve the performance and productivity of your staff? How will they address the gaps and challenges in your current situation? By defining your objectives, you can set the direction and scope of your training program and establish the criteria for measuring its success.

2 Choose your methods

Measuring the ROI of soft skills training can be done using different methods and tools, depending on your objectives, resources, and context. Pre- and post-training surveys and assessments can help you gauge changes in knowledge, attitudes, and behaviors of your staff. Observations and interviews can capture the qualitative and subjective aspects of the soft skills. Additionally, performance indicators and metrics can link the soft skills to hard outcomes like sales or customer satisfaction. You can use standardized or customized instruments, such as self-reports, ratings, checklists, rubrics, or open-ended questions to collect data before and after the training. This data can then be used to track and analyze changes in performance indicators and metrics.

3 Calculate your ROI

To calculate the ROI of your soft skills training, you need to compare the benefits and costs of the program. The benefits are the monetary value of the improvements in the performance indicators and metrics that are attributable to the training. The costs are the total expenses of developing, delivering, and evaluating the training program. The formula for ROI is:

ROI = (Benefits - Costs) / Costs x 100%

For example, if your soft skills training program resulted in a $50,000 increase in sales and cost $10,000 to implement, then your ROI would be:

ROI = ($50,000 - $10,000) / $10,000 x 100% = 400%

This means that for every dollar you invested in the training program, you gained four dollars in return.

4 Communicate your results

Once you have calculated your ROI, you need to communicate your results to your stakeholders, such as senior management, board members, funders, or partners. You need to present your findings in a clear, concise, and compelling way, using charts, graphs, tables, or stories, to highlight the impact and value of your soft skills training program. You also need to address any limitations, challenges, or recommendations for improvement, to show your credibility and commitment to continuous learning and development.

Soft skills training can have a significant and positive effect on your staff development and organizational success. By following these tips, you can measure the ROI of your soft skills training and demonstrate its value to your stakeholders.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?