Training in tough trading conditions can often be seen as a costly and low priority exercise, but when training develops the workforce, impacts performance and makes a difference to results, is it right to cut back?
The struggle for most companies when deciding on training for their employees is measuring the hard results of the training and the Return on Investment (ROI).
Measuring the ROI on training and development across your business allows you to discover what works and what doesn’t, track people development and individual goals as well as most importantly justifying the investment in people development for now and for future investment.
A useful model for measuring the ROI on training and development is Kirkpatrick’s Four Levels of Evaluation.
The four levels of Kirkpatrick’s evaluation model measure:
Level 1, 2 and up to 3 is where the measurement of ROI usually stops for an organisation, but measuring at each level through to 4 gives a complete picture of the ROI, the problem being how do you actually measure ROI at each level and in particular at Level 4?
Using Kirkpatrick’s model as a basis here are some useful ways to measure ROI at each stage.
Level 1 – Reaction
How the delegates felt and their reactions to the learning, e.g. Did the delegates like the training? Did they consider the learning relevant and a good use of their time?
Example evaluation methods: Feedback forms based on the individual’s learning experience, post-training surveys or questionnaires.
Relevance and workability: Can be done immediately after the training and is inexpensive and easy feedback to gather.
Level 2 – Learning
The increase in knowledge following the training, e.g. Did the employees learn what was intended for them to learn?
Example evaluation methods: Assessments / tests / interview / observation before and after the training
Relevance and workability: Can be simple to set up but require thought into the process to ensure clear scoring / measurements are established so measurement is consistent.
Level 3 – Behaviour
The extent to which the employee applied the learning to their role within the business, e.g. Did the employee put their learning into practice when in their role? Was the change in behaviour for their role sustained?
Example evaluation methods: Observation / interview / assessments / test over time to assess the change.
Relevance and workability: Assessments can be designed around relevant performance scenarios and specific key performance indicators.
Level 4 – Results
The effect of the improved performance of the employee on the business, e.g. Did the number of customer complaints decrease?
Example evaluation methods: You may find that these measures are in place already from existing management reporting, these need to be looked at to see how they relate to the employee’s impact.
Relevance and workability: Across an entire business it can become challenging to report directly on the exact improvement to the business from the improved performance. Utilising department goals and objectives as part of the reporting structure, and aligning training and development with business objectives will give meaning to the improved performance.
For example, if your business suffers from high customer drop out you send your retention team on a customer experience training course. Individual performance improvement can be measured from their customer drop out rates and business improvement can be measured on overall reduction in customer drop out, resulting in retaining customers and therefore an increase in profit.
The key part of measuring ROI is linking training and development with business objectives, and thinking prior to the training how this can be measured consistently across the individuals and the business as a whole.
If we can’t answer these questions, we should ask ourselves why we did it.
Published by James Osborne January 13th 2014
James Osborne
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