Employee Training and Development: How to Measure Effectiveness and Impact | 03.24.15

?How do you currently measure your training program and efforts?

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

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.

Executives Want to See More Impact and Value

RANKEDIMPORTANCE

TO EXEC’SMEASURE

LEARNING EVALUATION

LEVELEXAMPLE

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

KPI’S AND BENCHMARKS

How do you currently

measure success

Use existing data to set

benchmarks

Key performance indicators

for employees and the

organization

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.

KIRKPATRICK™ – PHILLIPS MODEL

LEVEL 1

REACTION participant

satisfaction

LEVEL 2

LEARNINGknowledge, skills

and attitudes

LEVEL 3

BEHAVIORApplication

and on-the-

job learning

LEVEL 4

RESULTSbusiness impact

LEVEL 5

RETURN ON INVESTMENT

KIRKPATRICK PARTNERS LLC

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

ISOLATION TECHNIQUES

SYSTEM/PROCEDURE CHANGES

INCENTIVE/MOTIVATION

MANAGER SUPPORT/ATTENTION

EXTERNAL FACTORS

EFFECT OF LEARNING ON IMPROVEMENT

TOTAL IMPROVEMENT

AFTER PROGRAM

TREND LINE ANALYSIS

CONTROL GROUP

Recruiters and Hiring

Managers Group 1Recruiters and Hiring

Managers Group 2

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?

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

TRAINING IMPACT

Manager Support

Opportunities to apply learning

on the job

Peer support

On-demand access

Leadership involvement

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

FOCUS AND PLAN THE EVALUATION

Identify performance areas

Engage all of the key

stakeholders

Clarify and define success

Establish the data points

SKILLS DEVELOPMENT PLAN

SKILL/CAPABILITY

DEVELOPMENT OPTIONS

MY DEVELOPMENT

ACTION

TIMING

Leading meetings Video: Leading Meetings -

Create meeting behavior

expectations with your team

Gather with your team

to discuss meeting

management and to

create meeting

expectations that

should be applied to all

team and project

meetings.

Review

monthly

CREATE A MODEL FOR SUCCESS

Organizational Goals

Business Unit Goals

Employee Behaviors or Actions

Employee Skills or Knowledge

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

SELECT SUCCESS AND NON-SUCCESS INSTANCES

MANAGER SUPPORTOPPORTUNITY TO APPLY LEARNING

PEER SUPPORT

ON-DEMAND ACCESS TO RESOURCES

SENIOR LEADER INVOLVEMENT

RECOMMENDATIONS, VALUE, AND ROI

Areas of increased

performance

The value of this increase

The costs to deliver value

Recommended

improvements to increase

value

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

$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.

TRAINING COSTS:

Human Resources: $90,000Reps: $300.000Total = $390,000

VALUE ADDED FROM IMPROVED PERFORMANCE: 500 reps X $600/day/repAccess 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

TRAINING COSTS:

Human Resources: $180,000Stakeholders: $480,000Total = $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

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

PROGRAM EXECUTION

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Jessica Petry

Sr. Marketing Specialist

jpetry@bizlibrary.com

@JessLPetry

@BizLibrary

Chris Osborn

Vice President of Marketing

cosborn@bizlibrary.com

@chrisosbornstl

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