EMPLOYEE TRAINING AND

DEVELOPMENT:

How To Measure

Effectiveness and Impact

How do you currently measure

your training program and

efforts?

a. Don’t worry be happy - smile

sheets all the way.

b. Completion – at least they did

something.

c. We make an effort to track

behavior changes.

d. Data-driven – the more

information and analysis the

better.

e. Something else.

What You’ll Learn:

How to determine goals and

key indicators?

3

2

1

BIZLIBRARY.COM

Overall spending on

employee training in U.S.

organizations is $164 billion.

COMPANY SIZE (# of Employees)

Smaller organizations typically

spend more per employee

than larger organizations.

$700

$964

$1,800

COST PER EMPLOYEE PER YEAR

$1,195

KPI’S AND BENCHMARKS: How do you currently

measure success?

Use existing data to

set benchmarks.

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:

KIRKPATRICK PARTNERS LLC

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

THE COST OF ONE

GALLON OF GAS

2013: $3.61

1970: $0.36

1959: $0.25

2013: $271,600

THE AVERAGE COST OF A

NEW HOUSE

1959: $12,400

1970: $23,500

2013

1970

1959

SPUTNIK –

launch of first

manmade

satellite

FIRST FLOPPY

DISK

3D PRINTING

THEN AND NOW

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

LEARNING PROGRAM

TREND LINE ANALYSIS:

CONTROL GROUP:

Recruiters

and Hiring

Managers

Group 1

Recruiters

and Hiring

Managers

Group 2

OTHER METHODS: • participant and manager estimation of

impact – ONLY AS GOOD AS THE EMPLOYEES ABILITY TO

PROVIDE INFORMATION.

• senior management estimation – BIAS AND

SIMPLE HUMAN ERROR.

• success case method – WHAT DID THIS PESON

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:

RECOMMENDED RESOURCE

Telling Training’s Story by Robert O. Brinkerhoff

1. What, if anything, did this person learn that was new?

2. How, if at all, did this person use the new learning in

some sort of job-specific behavior?

3. Did the usage of the learning help to produce any

sort of worthwhile outcome?

TRAINING IMPACT • Manager support.

• Opportunities to apply

learning.

• Peer support.

• On-demand access.

• Senior management

involvement.

FIVE STEPS TO CREATE A MEASUREMENT

AND EVALUATION PLAN:

Focus and plan the evaluation. 1

Create an impact model that defines potential

results and benefits. 2

Design and conduct a survey to gauge overall

success versus non-success rates. 3

Conduct in-depth interviews of selected success

and non-success instances. 4

Formulate conclusions and recommendations,

value, and return-on-investment. 5

1. Identify performance areas.

2. Engage all of the key stakeholders.

3. Clarify and define success.

4. Establish the data points.

Focus and plan the evaluation 1

Create a model for success. 2

Organizational Goals

Business Unit Goals

Employee Behaviors or Actions

Employee Skills or Knowledge

Design and conduct a survey to gauge

overall success versus non-success rates. 3

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.

Conduct in-depth interviews with employees who’ve

been BOTH successful and unsuccessful. 4

HIGH PERFORMERS LOW PERFORMERS

MANAGER SUPPORT OPPORTUNITY TO

APPLY LEARNING

PEER SUPPORT

ON-DEMAND ACCESS TO

RESOURCES

SENIOR LEADER

INVOLVEMENT

• Areas of increased performance

• The VALUE of this increase

• The costs to deliver value

• Recommended improvements to increase

value

Develop conclusions, write action plans

and implement needed changes. 5

RECOMMENDED RESOURCE

Course Title:

Developing Others - Connect every employee's individual goals

to the organization's vision and strategy

BIZLIBRARY.COM

REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES

MANAGERS

Goal: Reduce time to fill open positions from over 70 days to

less than 55.

Value:

The expected value to

be gained is measured

by using the average

revenue generated by

new sales reps in their

first 90 days of work on a

per day basis, and the

added value realized in

the first 6 months of

employment for each

day we can get them

onboard and trained

more quickly.

$435/day $32,000

In six months

The average

rep closes two

more deals at

an average

value of $16,000

each when

they started in

60 days after

position

opened.

First 90

days.

BIZLIBRARY.COM

Training Costs: Human Resources:

$45,000

Sales: $15,000

Total: $60,000

Impact: Seven reps were hired

with an average

reduction of 10 days

saved per rep in the six

month time frame of the

study.

Value Added From Improved Performance: 7 reps X 10 days each = 70 days. 70 days

saved were worth $30,450. 4 of 7 reps

started in 60 days or less after open position.

$128,000 added in new sales.

TOTAL VALUE GAINED: $158,450 on a $60,000 program.

Other Factors: Better communication and cooperation between sales managers and

HR recruiters meant the candidates being interviewed fit a success

profile for sales reps more clearly than before the program started. We

also learned that social media sourced candidates tended to be more

successful in the first six months than blind applicants.

REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES

MANAGERS

BIZLIBRARY.COM

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.

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.

$50/day $1,155,000

In six months The average bug eats

revenue while

customers are not

accessing our service at a rate of $50 per day. In

the last 6 months, 1,100

customers experienced

bugs each taking an

average of 21 days to

fix. 80% of the bugs

required a return of the

written report to the rep

for clarification.

The average

bug.

BIZLIBRARY.COM

Training Costs: Human Resources:

$90,000

Reps: $300,000

Total: $390,000

Impact: Written reports of bugs were

shortened and clarified so

less than 10% were returned

for rewrites in 6 months after

program. Average bug fix

reduced from 21 days to 12

days. Total bugs affected

1,210.

Value Added From Improved Performance: 500 reps X $600 days each for 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.

TOTAL VALUE GAINED: $544,500 on a $390,000 program.

Other Factors: Better general communication and cooperation between the

programmers and customer facing employees. We also learned that our

customer service employees did not have a deep enough

understanding of the technical side of our service. The enhanced writing

skills helped clarify the knowledge gaps which we filled quickly.

REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT

REPRESENTATIVES AND CUSTOMER SERVICE REPS

Key Ideas

Can I apply it today?

3

2

1

BIZLIBRARY.COM

In a world of learning and development

where complexity is the enemy… simple

and nimble approach…

MICHAEL ROCHELLE

Chief Strategy Officer

Brandon-Hall Group

Informal poll: What are you doing to

measure the business impact of your

training initiatives?

WORDLE.NET

BIZLIBRARY.COM

Course: Organizational Effectiveness

- Take action to provide the

resources employees need for

success

Target: Managers

Providing Resources - Define the

strategic priorities for the department

and align the required resources

Target: Managers

BIZLIBRARY.COM

Free trial of the BizLibrary Collection

6,000+ Courses. 25 Topic Areas.

Unlimited Access.

Improve your employees' performance with the

largest and fastest-growing library of on-demand

training videos and eLearning courses today!