ROI and Online Learning

By Melissa Venable

What is Return on Investment (ROI)? If you conduct an online search for return on investment you will find a lot of information focused on business needs. When a business considers engaging in a new activity, there are formulas and reports used to determine whether or not the new venture will be beneficial to the company or if the costs of engaging in the activity could outweigh the potential profit. In terms of online higher education, a student's investments and returns might be defined as follows.

• Investments = costs associated with pursuing and completing an educational program
• Returns = benefits resulting from the completion of an educational program

This is a dynamic time for higher education, one in which many experts are talking about College Return on Investment for students. Unfortunately, the formulas for education aren't clear-cut and the returns can be harder to measure.

The Value of an Education

Bloomberg Businessweek and PayScale's research on education ROI can be found in the 2010 College ROI Report. What can students expect as a return on their college investment? Bloomberg states that a college education ROI is approximately $400,000 in the 30 years after graduation. There are however, a lot of variables to consider, such as type of school program, specific disciplines, and changes in the economy. Continue your own research by reviewing the PayScale report and The College Board's Trends in College Pricing report.

Chances are you are considering online options because you have other responsibilities that may include family, employment, etc. Any educational endeavor includes costs and benefits. Understanding your own bottom line is especially important if you are adding to your already busy schedule.

By enrolling in an online program, you are choosing to make a personal investment. What are your goals for and expectations for this investment? Consider creating your own ROI formula and conduct an analysis with your specific needs in mind. A brief checklist is provided below to get you started.

The Investment

What resources will you have to invest in the process in order to complete the program?

____ What are the costs associated with the online program itself? These costs include, but are not limited to, tuition, textbooks, and fees.  

____ What additional expenses might be associated with your participation in an online program? Examples of additional costs include computer hardware and software, Internet access, and other expenses such as childcare.

____ How long will it take you to complete the online program? Think about how the academic calendar affects other calendars in your life, such as work and family. Can you take more than one course at a time? Time is a resource that should be part of your ROI analysis.

____ What sacrifices will you have to make to complete the program? Considerations here include time spent with family, cutting back on work hours, and reducing personal spending. What will the additional role of student mean for your day-to-day life?

The Return

What can you expect to gain from completing the online program?

____ Will program completion open up new employment options? If you are considering a career change, do some research about the job market and educational requirements in your desired field of work. Sites like CareerOneStop can help you explore education and training requirements for specific occupations. 

____ Will program completion help you get promoted with your current employer? In some cases, completing a degree or certificate increases eligibility for higher level positions. Check with your employer's human resources officer for more information.

____ Can you expect a higher salary after completing an online program? Make sure your starting salary expectations are realistic and in line with the current job market in your geographic area.

____ Will program completion fulfill a personal goal? Perhaps your desire to enroll in an online learning program is because you have always wanted to go to school, or to finish a degree started years ago, or to set an example for others. Realizing a personal goal can be a benefit of online education. 

____ Does the program allow you to learn more about an area in which you are interested? Learning for learning's sake is also a benefit of online education! If there is a particular area of study you are interested in or expertise you want to obtain through academic pursuits, consider this a return on your investment.

Create Your Own Checklist

As you work thorough the questions above, completing your own ROI analysis, you will think of items to add to the list. Everyone’s list will be a little different. What is important to you may not be what is important to others who are considering the same online programs. Other students will have different concerns, circumstances, and requirements, as well as personal and professional goals.

Keep in mind that investments and returns are not always financial in nature! Don't forget to include the personal reasons for seeking educational opportunities and consider their value to you.

Through the process of completing your own ROI analysis, you will have a better idea of what investment will be required before getting started, and what benefits you can expect in return upon program completion. What's your bottom line?