According the ATD State of the Industry, overall spending on employee training in U.S. organizations is $164 billion, the average cost per learning hour used is $89 and the cost per learning hour available is $1,772.
How can we make sure the investment of time and resources is making a positive business impact? How can we measure the effectiveness of our training initiatives?
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Employee Training and Development: How to Measure Effectiveness and Impact | 03.24.15
1.
2. ?
How do you currently
measure your training
program and efforts?
3. Training metrics – where we’ve been and
where we’re going.
How to determine goals and key indicators.
Five step process to create a measurement
plan.
WHAT WE HOPE YOU’LL BE
ABLE TO DO
4. BIZLIBRARY.COM
Overall spending on
employee training in U.S.
organizations is $70+ billion.
COMPANY SIZE (# of Employees)
$838 (10,000+)
$838 (500-9,999)
$1,888 (<500)
COST PER EMPLOYEE PER YEAR
$1,208
Smaller organizations typically
spend more per employee than
larger organizations.
5. Executives Want to See More Impact and Value
RANKED
IMPORTANCE
TO EXEC’S
MEASURE
LEARNING
EVALUATION
LEVEL
EXAMPLE
CURRENTLY
MEASURED
1 Impact 4 “The Accel project contributed 20% to our
reduction in error rates this fiscal.”
8%
2 Value 5 “Within one year, the East program will achieve
a 2:1 benefit-cost ratio.”
4%
3 Awards 0 “Our learning program won an award from
Chief Learning Officer magazine.”
40%
4 Application 3 “78% are applying their new skills to their jobs” 11%
5 Learning 2 “92% of participants increased their skills” 32%
6 Activity 0 “Last year 7,800 employees participated in
our learning programs”
94%
7 Efficiency 0 “Formal learning costs $2.15 per hour” 78%
8 Reaction 1 “Employees rated our training very high with
an average of 4.5 on a 5 point scale”
53%
Source: How Executives View Learning Metrics by Patti and
Jack Phillips, CLO Magazine, Dec 2010
6. KPI’S AND BENCHMARKS
How do you currently
measure success
Use existing data to set
benchmarks
Key performance indicators
for employees and the
organization
7. MEASUREMENT AND
BUSINESS
1951: EDWARD DEMING
The power of analytics to
drive improvement.
1954: PETER DRUCKER
The business of
management and the
knowledge worker.
1959: DONALD
KIRKPATRICK
Measuring the impact
and ROI of training.
1970: JACK PHILLIPS
Data-driven return on
investment.
8. KIRKPATRICK™ – PHILLIPS
MODEL
LEVEL 1
REACTION
participant
satisfaction
LEVEL 2
LEARNING
knowledge, skills
and attitudes
LEVEL 3
BEHAVIOR
Application
and on-the-
job learning
LEVEL 4
RESULTS
business impact
LEVEL 5
RETURN ON
INVESTMENT
KIRKPATRICK PARTNERS LLC
9. It's not the 95% that's right that
makes something work; it's the 5%
that's wrong that messes
everything up.
Measuring, Managing and Maximizing Performance
Will Kaydos
13. OTHER METHODS
PARTICPANT AND MANAGER
ESTIMATION
only as good as the employees
ability to provide information
SENIOR MANAGEMENT
ESTIMATION
bias and simple human error
SUCCESS CASE METHOD
What did this person learn that was new? How did
this person use the learning on the job? Did the
usage help produce a worthwhile outcome?
14. SUCCESS CASE METHOD
What, if anything, did
this person learn that
was new?
How, if at all, did this
person use the new
learning in some sort of
job-specific behavior?
Did the usage of the learning help to
produce any sort of worthwhile outcome?
1 2
3
SOURCE: Telling Training’s Story by Robert O. Brinkerhoff
16. Focus on what you’re evaluating1
Create an impact model that defines potential
results and benefits.
Survey to gauge overall success versus non-
success rates.
2
3
Select success and non-success instances.
Formulate conclusions and recommendations,
value, and return-on-investment.
4
5
5 STEPS TO CREATE A MEASUREMENT PLAN
17. FOCUS AND PLAN THE
EVALUATION
Identify performance areas
Engage all of the key
stakeholders
Clarify and define success
Establish the data points
19. CREATE A MODEL FOR
SUCCESS
Organizational Goals
Business Unit Goals
Employee Behaviors or Actions
Employee Skills or Knowledge
20. GAUGE OVERALL SUCCESS
VS. NON-SUCCESS RATES
WHICH STATEMENT BELOW BEST DESCRIBES YOUR EXPERIENCE SINCE
PARTICIPATING IN THE PERFORMANCE MANAGEMENT TRAINING?
• I learned something new, I have used it, and it has led to some very worthwhile
results.
• I learned and tried some new things but can’t point to any very worthwhile results
yet.
• While I may have learned something new, I have not been able to use it yet.
• I already knew about and was doing the things this training taught.
• I don’t think I can really use what I learned in the training.
SOURCE: Telling Training’s Story by Robert O. Brinkerhoff
21. SELECT SUCCESS AND
NON-SUCCESS INSTANCES
MANAGER SUPPORTOPPORTUNITY TO
APPLY LEARNING
PEER SUPPORT
ON-DEMAND ACCESS TO
RESOURCES
SENIOR LEADER
INVOLVEMENT
22. RECOMMENDATIONS,
VALUE, AND ROI
Areas of increased
performance
The value of this increase
The costs to deliver value
Recommended
improvements to increase
value
23. REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR
ACCOUNT REPRESENTATIVES AND
CUSTOMER SERVICE REPS
Goal: Reduce turn around time on bug fixes from an
average of 21 days to 10 days.
x x x x x x x
x x x x x x x
x x x x x x x
x x x x x x x
x x x
24. $1,155,000
80% OF THE BUGS REQUIRED A RETURN OF
THE WRITTEN REPORT TO THE REP FOR
CLARIFICATION.
$50 / DAY – OVER 6 MONTHS – 1,100 BUGS
VALUE:
The expected value to be gained is measured by using the average
revenue lost for each day the service is down for customers due to
sloppy or unclear written explanations of bugs to the programmers.
25. TRAINING COSTS:
Human Resources: $90,000
Reps: $300.000
Total = $390,000
VALUE ADDED FROM IMPROVED PERFORMANCE:
500 reps X $600/day/rep
Access to online writing courses including time to take and complete 5 courses
each and successfully complete writing evaluations to prove increased skills. 2 HR
reps needed to administer program and build writing evaluations.
IMPACT:
• Less than 10% of written reports of bugs
were returned for rewrites in 6 months
after program.
• Average bug fix reduced from 21 days to
12 days.
• Total bugs affected 1,210.
TOTAL VALUE GAINED:
$544,500 ON A $390,000 PROGRAM
26. TRAINING COSTS:
Human Resources: $180,000
Stakeholders: $480,000
Total = $660,000
VALUE ADDED FROM IMPROVED PERFORMANCE:
$1,200,000 in new sales with 90-day product release target, plus payroll
gains and cost savings of $144,000 which can be applied to next release,
further amplifying the benefits gained. Initial gain is $1,344,000 less the
costs of $660,000 for a net gain of $684,000 in the first 90-days after the
program finishes.
IMPACT:
• Release cycle of new products is at 180 days
& we need it to be 90 days.
• For every 30 days behind, we lose 8 new sales
- $50,000 each.
• 6-Team members lose 30 days each with
monthly salary of $8,000 each ($48,000 per
team).
TOTAL VALUE GAINED:
$1,344,000 ON A $660,000 PROGRAM
Collaboration Skills
27. 1. Focus and target training to directly address organizational
strategic initiatives.
2. Focus on employee success to improve performance and
change behaviors.
3. There are five key steps to create a measurement plan –
focus your efforts, create a model, compare results,
develop recommendations, outline value and ROI.
KEY TAKE-AWAYS