Designing Digitally
08/26/2021
There are many ways to measure training effectiveness. The most common way is by looking at the behavioral changes that occur after a training session. These measurements can include surveys, interviews, and observational assessments of the participants' workplace behaviors.
While these methods have their merits, they also have limitations. This is regarding what they can tell you about the actual effectiveness of your training program. It is because they only provide an indirect indication or measurement of behavioral change.
A more direct measurement for determining training effectiveness is through identifying key performance indicators (KPIs). These are concrete and observable measures taken before and after the delivery of a specific intervention.
The idea behind measuring KPIs is to track how participants' actions have changed over time concerning the objective(s) of the training. The following are some KPIs that can be used to measure and evaluate the effectiveness of employee training programs.
The number of trained employees is one of the KPIs you can use to measure the training effectiveness for the employee. The goal of employee training is to create behavioral changes and increase employee productivity.
This means you can measure employee training effectiveness by the number of employees who have attained their training, as well as see where learners dropped off or did not perform well. This would be an accurate way to determine how successful it was.
To increase employee productivity, employee training programs need to produce measurable results. The results will be for business owners and managers, so they know what works and what doesn't work.
According to research, the average company spends over $600 per employee on informal learning every year. But only about one-third of this money goes towards formal education or professional development opportunities like corporate training.
This indicates that many companies do not take employee training seriously enough, which translates to employee productivity not being taken seriously enough. One of the most effective ways to address employee training challenges is by using employee training objectives.
These employee training objectives should tie to business needs and company goals. They should also align with organizational strategic plans and initiatives. After all, employee training programs are an investment. Thus, you need to link employee training objectives needs to their competency. Also, you can connect it to their performance and business results.
After employee training has taken place, it is essential to evaluate employee training effectiveness adequately. This is to determine the degree of impact that employee training had on employee productivity.
Read also: 6 Tips to Track Learning on the Go in Corporate Training
Evaluating the total hours for an employee to complete their training requirements is another measurement for training effectiveness, and can also help calculate training ROI. You can break the cost of training an employee into three categories: direct, indirect, and opportunity costs.
Direct training expenses are the wages paid to trainers during a course and any materials they may need for the class.
Indirect training expenses include the time an employee spends on educating themselves to become better at their job, or exploring new skills to grow their career outside their current position.
Employee productivity is lost while attending traditional education programs, which is referred to as opportunity cost. Instructor-led courses, seminars, lectures, and conferences are examples of these programs.
Training hours is an effective KPI as it allows you to determine if the duration of training is producing the results you desire, as well as determine if there are sections you need to include or eliminate based on your findings.
Evaluating training effectiveness is a survey that assesses satisfaction with training. A training evaluation involves asking employees to answer questions about the training they have received and its impact on their work environment.
It can also involve assessing trainers to figure out how well they are performing their job. Evaluating training effectiveness aims to assess whether training programs are effective. Or what it could improve, and if there is any need for additional training.
These surveys are commonly used by organizations that require mandatory training as part of an employee's employment contract or continued employment. You can do surveys anonymously or through a third party, which ensures confidentiality from the employer.
While these surveys may seem intimidating, they provide valuable feedback on performance improvement opportunities within training and training that you could cut to save costs.
The average budget per employee is an essential L&D KPI that displays the total cost of training per number of employees when calculated. This allows the company to track how much it spends on training its employees and how efficient it is.
This metric also gives insight into the effectiveness of training. It also provides an insight into any learning and development gaps that may exist within the company. Depending on size, industry, and country location, the amount spent on training programs will differ for every organization.
Some organizations may spend more money than others due to their focus on required or mandatory training. In contrast, other companies might only offer voluntary workshops or seminars paid for by staff members. An organization should subtract the learning and development budget from the total employee costs to calculate this metric to get a final number.
The cost per hire through a training evaluation program is another critical learning and development management KPI. It displays how much it costs an organization to recruit and hire an employee and the amount you spent on training programs.
When calculated, this allows the company to track how much it is spending on training its employees. It will also help it understand how effective these efforts are at retaining outstanding staff members.
It also gives insight into what types of courses are most beneficial for recruiting purposes. Also, it will help determine which training programs are not valuable enough to warrant the costs of hiring new employees. It is important to note that this particular KPI will be different for every organization. It also depends on the pay scale, the number of potential hires in a given industry, and the overall cost per hire.
Read also: Employee Training KPIs You Should Track for Learning Evaluation
Evaluating training and using employee training KPIs brings tangible benefits to any establishment that wants to help develop employees and evolve their business. You can use basic KPIs that many companies follow, make your own, or work with a professional team like Designing Digitally to identify the best KPIs for your training efforts.
To learn more about how Designing Digitally can help you set KPIs that align with the business goals and results you want to see, check out our Capabilities and Project Lifecycle Journey. If you are ready to talk with one of our team members about your own training needs, simply reserve the time that is best for you through our Online Calendar.
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