What is effective training and why should it be measured?

Different trainings and coaching seminars have become so popular that many business owners never ask themselves a question: “What do we pay for?” A training session by itself does not guaranteeing a result.  Moreover, every company has to pay for education of their employees.  Of course, businesses face a choice: to hire experienced employees or two employed people with little experience and then educate them.  At the same time, it should be mentioned that both experienced and inexperienced employees require education.  Business is not idle. Production and IT technologies are constantly developing. That’s why personnel must not lag behind in order to stay competitive.

So, training evaluation gives characteristic of training and coaching sessions.  Besides, with the help of balanced scorecard it is possible to measure company attention to training of personnel, changes in the training budget, track the number of employees who regulate undergo training and number of those who still requires additional education.  Balanced scorecard will also provide top management with cause and effect ties, so that managers can actually see how training influences performance of employees and how this performance affects financial results of the company.

What are effective training KPIs?

What are effective training KPIs?

Training evaluation is expressed not only in financial terms.  Of course, it is very important how much money the company spends to educate one employee and how much the company expects to get as a result of such training.  But what is more important is employee attitude to training, willingness to participate in training sessions, employee initiatives as to changes and amendments in training programs etc.

Evaluation of training requires top managers and those in charge of BSC implementation to carefully choose relevant KPIs. For example, total number of training hours per employee or number of employees who have undergone training may not be indicative. Effectiveness of training must be measured with a complex and well balanced set of key performance indicators. Training scorecard must reflect cause and effect ties between training and employee performance.

Benefits of using training BSC

Benefits of using training BSC

Top managers need to remember that ineffective or untimely training is just a waste of money which is absolutely unacceptable in modern post crisis world of business. Effective training will not only educate personnel but also improve their motivation, and BSC is a great help here. Being aware of training benefits, employees will be glad to use obtained knowledge in practice in order to benefit the company and get personal bonuses.

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