Every L&D leader has been asked this question: “What’s the ROI of our learning programs?” For 92% of organizations, the honest answer is: “We don’t know.”
But new Cognota data from 6,000+ learning programs reveals this isn’t just a measurement problem, it’s a strategic crisis costing companies millions.
The Shocking Reality Behind L&D’s ROI Crisis
Recent analysis of over 6,000 learning programs from Q4 2024 and Q1 2025 reveals a staggering truth: 92% of programs fail to connect cost to tracked results. This isn’t just a statistical anomaly, it’s a systematic failure that’s undermining L&D’s strategic credibility.
Consider the mathematics of this crisis. According to the Association for Talent Development’s 2024 State of the Industry report, the average organization spent $1,283 per employee on workplace learning in 2023. For a company with 1,000 employees, that’s $1.28 million in annual learning investment. Without proper ROI tracking, these organizations are essentially gambling with multimillion-dollar budgets, hoping their programs deliver value but having no systematic way to verify it.
The implications extend far beyond this basic accounting. When L&D can’t demonstrate clear returns on investment, it becomes vulnerable to budget cuts during economic downturns, struggles to secure resources for innovative initiatives, and fails to position itself as a strategic business partner. The inability to connect cost to results relegates learning from a growth driver to a cost center.
The Hidden Cost of Measurement Failure
The financial impact of poor learning measurement extends beyond the direct program costs. Organizations without ROI tracking face several hidden expenses:
Opportunity Cost: Resources invested in ineffective programs could have been allocated to high-impact initiatives. When 92% of programs can’t demonstrate their value, organizations miss opportunities to double down on successful approaches while continuing to fund failing ones.
Strategic Misalignment: Without clear measurement, L&D programs often drift from business priorities. This misalignment costs organizations not just in direct expenses but in missed opportunities to develop critical capabilities needed for competitive advantage.
Compliance and Risk: Industries with regulatory requirements face additional costs when learning programs can’t demonstrate compliance effectiveness. The inability to track results creates audit risks and potential regulatory penalties.
Talent Retention Impact: Ineffective learning programs contribute to employee disengagement and turnover. When organizations can’t identify which programs actually develop talent, they risk losing high-performers to competitors with more effective development approaches.
The Success Formula: Structure Drives Results
While the majority of programs struggle with measurement, the data reveals a clear path to success. Programs that use structured fields, including defined audience, clear goals, and expected benefits, are 4x more likely to report success than their unstructured counterparts.
This isn’t coincidental. Structured programs create the foundation for measurement by establishing:
Clear Baselines: Programs with defined audiences and goals can establish baseline performance metrics, making it possible to measure improvement and calculate ROI.
Trackable Outcomes: Expected benefits provide specific targets that can be monitored and measured throughout the program lifecycle.
Accountability Frameworks: Structure creates accountability by making it clear who is responsible for what outcomes and when results should be achieved.
Continuous Improvement: Structured programs generate data that enables optimization and refinement over time.
Industry Transformation: The Move Toward Measurable Impact
Leading L&D organizations are recognizing that measurement isn’t optional, it’s essential for moving the profession forward. Josh Bersin research launched a research study on the $360 billion corporate learning market on the thesis that “L&D is going through a complete reinvention in a short period of time”. The need for this research is primarily being driven by changes in technology, including AI, but also driven by economic pressures.
We see measurement as one of the critical needs in this time of transformation which is evident in several key trends:
Data-Driven Decision Making: Organizations are moving beyond anecdotal evidence to statistical analysis, using learning analytics to guide program design and resource allocation. Our recent blog post “Turning Data into Impactful Stories” talks about turning that data into a narrative that people can understand.
Business Impact Focus: Rather than measuring training completion rates, leading organizations track business outcomes like productivity improvement, retention rates, and performance metrics.
Technology Integration: While learning management systems are evolving to include more sophisticated analytics, they don’t focus on the entire learning operating system, which is where a LearnOps platform like Cognota comes in.
Skills-Based Approaches: The focus is shifting from generic training to targeted skill development with measurable competency gains.
The LearnOps Revolution: Systematic Approach to Learning Excellence
The solution to L&D’s measurement crisis lies in Learning Operations (LearnOps)—a systematic approach that treats learning as a business process requiring the same rigor as other operational functions.
LearnOps creates measurement capabilities through:
Standardized Processes: Consistent approaches to program design, delivery, and evaluation that generate comparable data across initiatives.
Integrated Systems: Technology platforms that capture learning data and connect it to business metrics, enabling ROI calculations.
Performance Frameworks: Clear methodologies for defining success metrics and tracking progress toward business objectives.
Continuous Optimization: Regular review and refinement of programs based on performance data and changing business needs.
Building a Measurement-Ready L&D Organization
Organizations ready to escape the measurement crisis can take several immediate steps:
Establish Outcome Requirements: Make defined outcomes a prerequisite for program approval. No program should launch without clear success metrics tied to business objectives.
Implement Tracking Systems: Invest in technology that captures learning data and connects it to business performance metrics.
Develop Measurement Expertise: Build internal capabilities in learning analytics or partner with external experts who can provide measurement frameworks.
Create Accountability Structures: Establish regular reviews where program leaders must demonstrate progress toward defined outcomes.
Start Small, Scale Smart: Begin with pilot programs that demonstrate measurement capabilities before rolling out comprehensive tracking across all initiatives.
The Strategic Imperative
The data is clear: L&D organizations that can’t demonstrate ROI are fighting a losing battle for strategic relevance. The 92% of programs that fail to connect cost to results represent not just measurement failures but missed opportunities to drive business impact.
Organizations that embrace structured approaches to learning measurement will gain competitive advantages through more effective talent development, better resource allocation, and stronger business partnerships. Those that continue operating without measurement will find themselves increasingly marginalized in strategic discussions.
The choice is clear: embrace the measurement imperative or remain part of the 92% that can’t answer the $1.3 million question. The future of L&D depends on which path organizations choose.
