If you and your team are considering implementing a new training module, you no doubt have a lot of questions. You could be wondering about the time and efficacy, and you’re probably more than a little concerned with how the training itself will affect your employees. However, people in charge of approving such programs for your company have more concrete concerns. One of the first questions they will ask is how you will measure the return on investment (ROI) for your new training program.
The challenging part about measuring your training module’s ROI is that you cannot simply crunch some numbers to get the answer. While many investments deliver quantifiable results, the real impact of your training lies in the qualitative improvement of each employee’s performance, production, and compliance.
When looking to develop a new employee training program, our clients consistently ask us about measuring ROI for training. We’ve researched this complicated issue and found a few methods that work for many different industries. The following five ways are the most effective forms of measuring the impact and efficacy of your company’s training.
1. Increased Productivity and Improved Performance
Before you begin your training, sit down with your team’s managers and go over a detailed questionnaire about each team member’s performance. These questions should be very industry-specific and center around the material that would be covered in the training. After your training module is complete, allow for a “trial period” to observe any changes (30 days is usually adequate). After the trial, revisit those questions. You will be able to clearly see any changes and improvements.
2. Number of Costly Mistakes and Need of Retraining
This is perhaps the most measurable of these tips. No matter your industry, employees make mistakes. Some errors are costlier than others. Obviously, one of your goals when creating a new training program should be to reduce the number of costly mistakes especially those that could lead to extensive retraining or even termination of employees.
While you are filling out the questionnaires from the first solution, you should compile data for this rubric. Calculate how much money is lost due to mistakes made correlating to the subject matter of the training. You can measure this in increments of three, six, or twelve months. At the end of the measurement period, recalculate that number and compare the difference.
3. Duration of Onboarding Time and Turnover Rates
Training new employees comes with considerable cost, which increases when a company has high turnover rate. Onboarding, therefore, is a major investment in both time and money for most companies. If you have an effective training module, you can shorten onboarding time significantly. Since your team will be efficiently trained and empowered, your subsequent turnover rate will also substantially lower.
The best way to measure the efficacy of your new onboarding training module is to compare new hires to old. After a new employee’s first performance review, compare the his or her review to those of similar employees who were onboarded before the new program was implemented. While all employees are individuals and have different needs, you should be able to determine if the training has made a difference
4. Team Feedback
Sometimes the best way to understand if training is working is by asking the learners themselves. While this may be the most subjective technique in this list, it can prove to be very helpful to understand what your employees think about their training modules.
A questionnaire is helpful for this method. With a questionnaire, you can ask the employees questions about their own experiences and takeaways from the training.
- “Does the training cover the right material?”
- “Is the course’s layout easy to follow?”
- “Do the employees feel that different training methods might be more effective?”
These are just a few examples of questions that could help you determine if you are reaping the benefits from your investment in training.
5. Three Key Factors for Your Organization
Every business has distinct and definable factors to success, and these should be well established before you even begin to develop your training module. In fact, they should be at the core of every module. Ask yourself what is important to your team or which KPIs (key performance indicators) your business considers to be crucial for success. No matter what your most important factors are, it is recommended that you chose three and use those as your main points of measurement. Take note of all the relevant data before you implement your training, then measure it once again after the training has been completed.
Measuring Your Success
These five strategies can help you gauge if your training is working. Keep in mind that while you can–and should–measure your training’s effectiveness, an emphasis on learning will benefit your entire organization. A culture of learning is a boon for any company. When employees are motivated to learn, employers reap the benefits.