Training Effectiveness KPIs

Training Effectiveness Key Performance Indicators

Training effectiveness KPIs

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Training and development is a vital sector of any organization. In the US, every year organizations spend 1000 US dollars per employee on average for training purposes.

Organizations put a lot of effort, time, manpower and money in this sector hoping to get a better return on investment. But with the growing number of training and workshops, one might wonder are the efforts and money worth it?

Are the investments improving the overall performance of the organization? To find out about these you have to apply some key performance indicators to measure the effectiveness of your training.

The Kirkpatrick model is one very effective tool to rate the effectiveness of training. It evaluates the effectiveness in 4 different levels:
• The participants’ reaction to the training,
• The participants’ learning from the training,
• The behavior of the participants after being trained
• The impact of the training on the overall performance.

There are many key performance indicators derived from this model. Some focus on the training itself, some take into account a broader picture – the organization.

Key performance indicators based on training

• Number of Participants:

The number of participants in training can tell you a lot about the participants’ reactions to it. If the number drops halfway through the training it may indicate that the participants are not finding the training as effective or beneficial.

• Training Completion Rate and Time:

The number of participants that completed the training and the time it took to complete the training are important KPIs for measuring effectiveness. These KPIs will indicate if the participants got what they expected from the training.

• Average Performance in Test:

The average test score of the participants can tell you how well the employees grasped the training. The test can be conducted immediately after the training or several weeks after the training. The later will certainly provide more effective result.
KPIs Related to Organization Performance-

• Impact on Performance:

Training should have some positive effect on employee performance. You can measure it up by setting some metrics like- time reduction, cost reduction, improvement of quality, increase in sale rate and so on. The more accurate your metrics are the more precise your performance analysis would be.

• Return on Investment:

Figuring out an effective relationship between training and the organization’s profit is complicated. The training return on investment can be calculated from the changes in profit owing to training and the cost of training. The result of training ROI will help you figure out which trainings are worth your investment.

One thing to remember is, these KPIs vary depending on the organization. What works for you, might not work for another organization. KPIs that use very practical and real world metrics results in a precise output.

So you should put your training and development team to find out the best set of KPIs to measure out the effectiveness of training. KPIs customized to your organization will help you focus on the trainings that are actually productive and cut back the trainings that are not worth the effort.

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