Training Evaluation Metrics

There is a need to use metrics to train your employees’ efficiency. This way, training investment will translate to higher profit margins for the organization.

An increasing number of HR practitioners and training managers now see the need to use metrics to train your employees’ efficiency.

According to a survey conducted by Expertus and TrainingIndustry.com in early 2008, 35% of the training budget allocation of the survey respondents was spent on delivery. Content development and administration were allotted 26% and 24%, respectively. Technology, meanwhile, is allotted only 15% of training budget. Training budget allocations for companies could reach millions, which is why this data is relevant. While training is a legitimate operational expense, it should always be justified by relevant training efficiency metrics.

Training and development, also called professional development, is one of the primary motivators of employee retention. It is also one key benefit that is most likely to attract high-quality job applicants. In order for a business organization to experience the full benefits of their training investments, training benefits should be translated to higher profit margins.

To accurately measure training programs, metrics, such as effectiveness skill cost, effectiveness outcome cost, efficiency, applicability, and appropriateness. Effectiveness skill cost and effectiveness outcome cost are metrics that measure training effectiveness. It can be derived by comparing scores of post-tests and pre-tests training sessions. In order to minimize effectiveness skill cost, participants may be encouraged to improve their post-test scores or minimize cost of training delivery. Essentially, the lower the effectiveness skill costs and effectiveness outcome costs, the better a company’s training program is performing. Minimizing effectiveness outcome costs could be done through one of two ways.

First, the company could invest on a pre-test, which is done before employees are enrolled to a training activity. Those who already meet the training requirements no longer need to push through with the training. Second, those who are most likely not to pass the training course could be eliminated; or a prerequisite course could be organized for them. Efficiency metric, on the other hand, measures the amount of training delivered per unit. It supports the idea that a classroom that is filled with training participants is more efficient compared to a room that is only half full. Applicability Ratio is another metric that can show managers how training is consistent with the needs of the business. This metric reveals whether the skills to be acquired from training are applicable to the business. Though this can be simply calculated, it can be very difficult to collect data that will support this. Appropriateness Ratio, meanwhile, determines that the right learning materials are delivered or provided to the right people. It is more specific than Applicability Ratio, as it measures the training of certain people who are given special tasks. Training, in this context, is associated to a project, team, or job function.

The metrics previously discussed are just some of the many training metrics that can be used to assess training programs implemented. You also have to remember that the training metrics implemented can differ from one company to another. Regardless of the difference in the nature and objectives of the organizations, it is universally beneficial to use metrics to train your employees’ efficiency.