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| Why E-Learning? |
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| E-Learning is the effective learning and teaching process that uses a wide spectrum of technologies to create e-digital content for more engaging and interactive learning experiences, mainly Internet or computer-based, to reach learners at a distance. E-learning is not a replacement killer for traditional classroom-teaching; it is an enhancer. Organizations choose e-learning to complement their traditional instructor-led training programs to increase the efficiency and productivity of their employees and overall effectiveness of the business. |
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| Challenges in the Hyper-Competitive Market |
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| In today's hyper-competitive market, more and more academic institutions, enterprises and government organizations across the globe are turning to cutting-edge technologies to enhance and complement their offerings and achieve competitive advantage in their industry.
Corporations are increasingly facing new challenges such as:
- Rapidly changing and increasing demands of the global world and economy
- Maturing and hyper-competitive market
- Increasing demand and pressure on corporate resources
- Meet international standards and quality to remain competitive
- Increasing diverse employee population with different professional expectations and needs
- Increasing demand for accountability from a wide variety of industry stakeholders
- Rapid shifts in technology
- Recruitment and retention of talented and skilled people, etc.
To meet these challenges and remain competitive, creating a sound knowledge and skilled work force has become critically essential, and the work-based e-learning has increasingly been viewed as a competitive weapon to utilize the power of technology.
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| E-Learning Features |
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E-learning can improve the flexibility and quality of learning compared with traditional classroom instruction by:
- Providing access to a range of resources and materials, which may not otherwise be available or accessible, for example graphics, sound, animation and multimedia
- Reducing the administrative load by making routine information available online. This will release more time for other activities
- Giving control to employees over when and where they study
- Allowing employees to study at their own pace
- Providing an employee centered learning environment which can be tailored to meet the learning needs of individual employees
- Supporting an increasingly large and diverse employee population with little increase in teaching time
- Creating an environment that promotes an active approach to learning
- Supporting increased communications between instructors and learners, and amongst employees
- Providing frequent and timely individual feedback, for example through computer assisted assessment, and positive reinforcement
- Reducing assessment and marking loads through the use of Computer Aided Assessment (CAA) and Computer
- Computer Mediated Communication (CMC)
- Motivating employees through appropriate use of interactive courseware;
- Supporting and encouraging collaborative learning
- Supporting economic reuse of high quality, expensive resources
- Encouraging and supporting employees to take responsibility for their own learning
- Making it easier to amend and update materials
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| Benefits for Corporations from E-Learning |
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| 1. |
E-Learning Increases the Knowledge Retention
Mayer’s research (Simon, 2006) found that information retention increased by 89% if the information was enhanced by multimedia e-learning when measured against the same piece of information presented as a paragraph in a book.
E-Learning using rich multimedia is said to have two key functions in enhancing information retention. Firstly, information retention is enhanced by the affective function of multimedia that is, the ability to sustain the learner’s interest, improve motivation and stimulate the learner's senses. Secondly, multimedia has a cognitive function, which improves learner retention by assisting knowledge transfer and developing internal networks of knowledge.
With multimedia rich e-learning:
- Employees learn faster, easier and remember more
- Employees can more accurately recall what they learned over a longer period of time
- Employees are better able to transfer what they learned to actual performance
- Employees show about 40 % increase in learning retention and improved attitudes about management and jobs
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| 2. |
E-Learning Reduces Travel Costs
Travel and Entertainment (T&E) cost is one of the huge costs involved in training for many corporations. As corporations become more global, the cost of moving and housing employees can only increase.
- Numerous studies have shown that e-learning can cut the travel and entertainment cost associated with training by at least 50% (Hall 1997)
- Other studies have shown that if implemented properly these costs can be reduced by at least 80% (Hemphill 1997)
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| 3. |
E-Learning Reduces Employees Time Away From Work
It was found and confirmed by many studies (Fletcher – 1990, Hall’s - 1997) that computer-based require significantly less time than instructor-lead training. These studies indicated that the reduction in time ranged form 20-80% with 40-60% being the most common time saved.
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| 4. |
E-Learning is Cost Effective and Cost Saving
Brandon Hall, an industry watcher, acknowledges that companies experience a 40%-60% cost saving when comparing instructor-led education with technology-delivered courses. It is not uncommon for development costs for multimedia to be four times that of traditional classroom instruction. But as the number of employees or students increases, the cost per employee is dramatically reduced. This is the cost efficiency of e-learning; it can reach more people in a shorter amount of time than traditional learning.
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| 5. |
E-Learning Meet the Needs of Geographically Diverse Employees
E-Learning is flexible. It is self-paced and can occur any time and any place. As such, it is ideally suited for training employees who are dispersed globally. E- Learning is easily modified (especially Web delivered content) thus making it more adaptable for translation and change of content for different cultures and languages.
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| 6. |
E-Learning Provides More Consistent Course Delivery
Many studies on corporate trainings found that an average delivery variance of 59% between presentations by classroom instructors. Also, because the class is presented “live”, there is no opportunity for the instructor to review his/her performance and to make changes. In contrast e-learning is very similar to a performance that is filmed or taped. The instructor can review, edit and re-edit their presentation until it is just right. In addition no matter how many times the class or learning module is presented it will not change or vary. Each employee will get exactly the same material no matter when and how many times they take the course. This leads to very consistent delivery of material that is not possible in a traditional classroom approach.
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| 7. |
E-Learning Can Offer More Adaptive and Personalized Instruction
Anyone who has ever taught in a traditional classroom setting knows how difficult it is to give individual instruction while at the same time meeting the needs of the class as a whole. Instructors must pace their presentations for the majority of learners in the class.
If some employees are having a difficult time mastering a new concept, it is virtually impossible for the instructor to know about this unless they speak up. Without knowing this, the instructor cannot adjust his/her pace. In addition, even if the instructor is aware of these employees having difficulty mastering a concept, he/she still needs to pace the instruction for the majority of the class. This inability to pace instruction to each student’s needs is a major drawback to traditional instruction. It penalizes both bright and slower employees and is inefficient.
This is not the case with e-learning. Using e-learning employees can learn at the pace that suits them best, at the time that suits them best while getting the information that they need.
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| 8. |
E-Learning Yields Better Learning Results than Traditional Learning
Studies by Fletcher (1990), Wright (1993) and Adams (1992) have found significant differences between e-learning and traditional classroom instruction. They reported the following results:
- E-learning produced a 60% faster learning curve as compared to traditional instruction;
- Employees had up to 50% higher content retention for e-learning over traditional classroom instruction;
- E-learning employees demonstrated 56% greater gains in learning than did employees who were taught by traditional instruction;
- Consistency of learning was up to 60% better for students taught through e-learning over those taught by traditional methods;
- Consistency of the presentation of material was 40% higher for e-learning
- Training compression was up to 70% faster for e-learning than it was for traditional classroom training
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| 9. |
Training Makes Employees More Productive
For over ten years research has been conducted to determine if employees receiving ongoing training are more productive than those who do not. In a comprehensive study Forman (1994) reported that employees who received ongoing training work more efficiently than did their counterparts who received no on-going training. Forman stated that as a result of this increase in efficiency the following occurred:
- The cycle time for manufacturing was significantly decreased;
- Sales significantly increased;
- Absenteeism decreased;
- Product quality significantly increased with less waste due to error and
- Reduction in accidents and lost time injuries
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| 10. |
Training Results in Less Employee Turnover
Turnover costs include, but are not limited to; hiring expenses, training expenses, productivity losses and internal resources applied to dealing with the termination and hiring process. There are also soft costs associated with employee turnover. Soft costs have more to do with the impact of a revolving door on other employees. Other employees often have to pick up the additional workload until a new employee is hired and trained. This can lead to morale problems. One way to decrease turnover is to provide comprehensive and ongoing training. A thorough review of the literature by McNamara (1999) found that on-going training significantly reduced employee turnover.
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| 11. |
Customer Satisfaction Increases With Employee Training
The Customer Service Institute estimates that it costs five times as much capital to acquire a new customer as it costs to service an existing one. A study by Bain Consulting (Business Week, August 1992) demonstrated that increasing customer retention by as little as 2% had the same effect on profits as cutting costs by 10%.
Forman (1994) while summarizing the benefits of multimedia training cites several case studies that show an average gain of 10-15% in customer satisfaction and retention following multimedia training in customer service skills. He further reports an increase in speed of service to customers as well as a decrease in customer complaints following training. |
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| Summary and Conclusions |
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| E-learning offers practical ways of dealing with some of the challenges in training and can help shift corporation role from that of teacher to a guide and facilitator of employees' learning. Studies conducted by the military, education and industry cite a 15-25% increase in learning with significant increases in retention and transfer of training. |
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| Impact of E-Learning – Major Corporations Experience |
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| The United States Air Force reported an increase in the ability to diagnose and repair aircraft systems correctly the first time by more than 80 %. They also reported a decrease in "no fault found" part replacements of 5%, which represents millions of dollars in parts cost and downtime savings. Air Force managers also reported increased ability of more technicians to solve the toughest problems--which alleviated difficult staffing problems and downtime. Managers also reported on the improved morale and confidence of technicians.
Brandon Hall (1995) reviewed a number of studies on multimedia training and return on investment. The studies involved such companies as Intel, American Airlines, Pacific Gas and Electric, IBM, Bethlehem Steel, Bell South, Steel case, and Pizza Hut. In all studies reviewed the results indicated significant increases in the quality of learning when computer based training was compared with traditional classroom instruction.
The Clinton administration estimated that the National Information Infrastructure has enabled 30% more learning in 40% less time at 30% less cost and is therefore cost-effective.
Union Pacific Railroad reported an increase in bottom-line performance on time delivery of goods of over 35 %, which equated to millions of dollars in increased revenues and savings. He also reported that learners showed a 40 % increase in learning retention and improved attitudes about management and jobs. With CBT, Union Pacific was able to implement new company-wide processes 12 months earlier than would have been possible with traditional training;
Omega Corporation reported as much as a 100 % improvement in "hit ratio" on sales calls, more confidence in making sales calls, improvement of customer commitments from 33 to 93 % and achievement of nearly 50 % of the yearly sales goal in the quarter immediately after training and
American Express stated that the real return on investment (ROI) CBT lies in the use of simulations and real-life scenarios to teach thinking processes or mental models. The spokesperson suggested that it was easy to measure the dollars saved when a fraudulent claim is not paid out because a novice representative has learned to think like a pro. The number of fraudulent claims that get past phone representatives has been significantly reduced. “While training is not the universal answer for all human performance issues, it can provide viable solutions to many of the new challenges that face corporations.” Well-constructed computer based training, if employed appropriately, can yield significant improvements in learning and performance. This positively affects ROI and significantly improves a corporation’s competitive advantage. |
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| REFERRENCES |
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- Adams, Gregory L. (1992, March). "Why Interactive?" Multimedia & Videodisc Monitor
- Allen, Rex J. (1978) "Microcomputers and Videodiscs: Team Teachers for the Eighties?"
- Allen, Rex J. (1981, January). "Videodisc: Definition, application and impact on the audio-visual market"
- Cantwell, Steve (1993, Nov/Dec). "Multimedia Transforms Union Pacific's Training Strategy, Tech Trends
- Chabrow, Eric R. (1995, July 10). "The Training Payoff." Information Wee "Cost/Benefit Analysis of Interactive Desk-top Learning"
- Cross, Jay (1996). "Tracking Results: an Omega Protocol. " A white paper from Omega Performance, Inc Sausalito, CA.
- Fitz-Eng, Jac (1994, July). "Yes…You Can Weigh Training's Value." Training Magazine
- Fletcher, J.D. (1990, July). Effectiveness and Cost of Interactive Videodisc Instruction in Defense Training and Education, Washington DC: Institute for Defense Analyses
- Forman, David C. (1994). "An ROI Model for Multimedia Programs." Multimedia Today, Volume 2, Issue 3
- Gordon, Jack (1991, August). "Measuring the 'Goodness' of Training." Training Magazine
- Hall, Brandon (1995a). Return-on-Investment and Multimedia Training: a Research Study. Sunnyvale, CA:, Multimedia Training Newsletter
- Hall, Brandon (1995b, July/August). "Multimedia Training's Return on Investment." Workforce Training News
- Hassett, James (1992, September). "Simplifying ROI." Training Magazine
- Hemphill, Hoyet, H. (1997) “The Impact of Training on Job Performance”
- Hofstetter, Fred T. (1994, Winter). "Is Multimedia the Next Literacy?" Educator's Tech Exchange
- Kouzes, James M. and Barry Z. Posner (1995). The Leadership Challenge, San Francisco, CA: Jossey-Bass Publishers
- Robinson, Dana and James Robinson (1989). Training for Impact, San Francisco: Jossey-Bass Publishers
- ‘Where should I use Multimedia?' in Learning Technology
- "How E-Learning Can Increase ROI for Training?" by THINQ's Research Department
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