Measure most important training ratios

There is a universal rule in the world of business. You need to the constantly developing your company, of course if you want to succeed.  Of what do we mean by development?  Of course, this is investment in different business spheres.  If you want to earn more you need to invest.  As a rule, businessmen invest in production facilities, new offices etc.  However, many people forget about investment in human resources, or in other words investment in personnel.  What kind of investment is that?

You have probably noticed that different training and seminars for employees have become extremely popular in all businesses fields.  Indeed, you should invest money in people who will then use update knowledge to make more profits for your company.  Even if you possess huge Financial Resources you still need people who will make an effective use of them.

Measure training ratios with BSC system

Measure training ratios with BSC system

A regular training of personnel is very important for companies and businesses, irrespectively of their size.  A well organized the training session will raise competence of your employees. There they will learn new things, techniques and methods and put this in practice.

At the same time one needs to make sure that such training sessions have a positive impact on employees’ efficiency.  In other words, efficiency of training sessions needs to be measured.  Balanced scorecard system is one of the best tools for performance measurements.  This software will test key performance indicator (KPIs) which represents different aspects of the company performance.

In human resource management and training there is the special set of KPIs.  It is very important to choose major KPIs and focus on key issues.  Balanced scorecard system will give you a unique opportunity to measure effectiveness of training.  If you locate problems early you will not suffer big losses as ineffective training is just a waste of time and what is more important waste of money.

Use Balanced Scorecard system to measure training ratios

Use Balanced Scorecard system to measure training ratios

Balanced scorecard system will make it possible to organize effective training seminars and sessions.  By tracking the ratio of cost per employee and revenue per employee you will be able to see what was wrong in training receive.  As known, goal of any training session is to increase professional level of the employees so that they can bring ma profits for the company.

Balanced scorecard system is very easy to use.  If you want to evaluate training ratio of this is the best tool to be used in human resource management.

Balanced Scorecard System measures training roi

Running business is not an easy thing.  You need to take into account so many factors, and at the same time fide the games competitors which have only one goal – wiping you out.  Customers are of very picky these days, so you need to do much work to attract them.  You need to be always alert as markets changes very quickly.  Thus, you need to be ready for such changes.  You means business owner of the company management, as well as ordinary employees.  You need to know that you have the most competent professional personnel as compared to competitors.

Investing in personnel is a very smart decision.  By all denies in an effective special training session for your employees you lay down the foundation of your company success in future the cause of it is that people who work in your company of making profits for you.  Even if you buy the most expensive equipment, computers, office buildings and production facilities has all but make no sense if your employees are not competent enough to use such resources.

Training ROI as important element in training evaluation

Training ROI as important element in training evaluation

That is why it is imperative to train personnel.  As a rule that, human resource department is responsible for such tasks.  Personnel needs to be regularly trained.  The more your employees know the more they can use in real business.  At the same time, a training seminar may be a waste of time and money if eventually you fail to reach financial goals.  It is not a secret that training sessions are conducted with one goal – to earn more money in future.  If you failed to reach this goal your training was ineffective.

However, using balanced scorecard system you will be able to measure efficiency of training sessions, and different elements of training process.  Balanced scorecard system helps in locating problems at their early stages.  This tool also helps in finding solutions.  For example, regular use of balanced scorecard system makes it possible to track changes in training efficiency.  Return on investment (which is a goal of any training) is a key issue here. Training ROI means that a trained employee uses his/her knowledge to make more profits for the company.

The use of balanced scorecard system is highly recommended for human resource managers and top managers who are responsible for training and coaching of personnel.  At the same time balanced scorecard system contributes to employees’ self confidence, motivation and loyalty.

Balanced Scorecard system helps in evaluation of training roi

Balanced Scorecard system helps in evaluation of training roi

Use Balanced Scorecard system for training evaluation

The last decade so a sharp increase in the number of different practical courses, seminars and training sessions for professionals of all kinds.  And no wonder!  There is quite as simple explanation – business owners understood that the best way to earn money or invest in the company is to invest in personnel.

Imagine that you own a business.  Your company has been doing OK for a long time but now it faces serious challengers and problems.  But you can not understand what has gone wrong.  You invested money, purchased new equipment introduced new techniques and methods.  But you never invested in personnel.  Thus your employees remain on the same professional level while your competitors regularly train their personnel. Even if you possess huge Financial Resources your company will still fail if your personnel will be unable to smartly use the money.  That is why training is so much important for any business.

Balanced Scorecard system is a great tool for training evaluation

Balanced Scorecard system is a great tool for training evaluation

At the same time you need to make sure that your training campaign is effective.  Organizing training is not enough to succeed.  You should know that you efficiently spend every dollar you invest in your employees.  People who work for you need to opting me you knowledge and the new use it in the work.  If it is not so the training will be just wasting money and time.

But how can you measure training efficiency?  Just use balanced scorecard system and you will have all the problems solved.  Balanced scorecard system is the tool which is widely used in business performance evaluation.  Training is a very important aspect of running business.  Thus training evaluation or measurement is a must for your company.

What are main advantages and of using balanced scorecard system?  One of the greatest advantages is that this tool will evaluate individual KPIs which are indicators that show different aspects of training efficiency and company performance.  KPIs are different in different businesses.  That if we are talking about training we need to pay a special attention to the following KPIs:

  • Cost per employee.  This is perhaps the most important KPI in training metrics.  And if you manage to spend a little money for training one employee and get profits you’re an efficient manager.  Of the however are be careful since saving too much may result in big problems for your company.
  • Revenue per employee.  Balanced scorecard system will help you calculate how much profit you have or don’t have as a result of training.
Most important training evaluation KPIs

Most important training evaluation KPIs

HR training is a must in every company

Post crisis economy set very serious tasks for business.  Financial meltdown and credit crunch resultant in the worst economic crisis since the great depression.  As a result, many people do not have considerable purchasing power.  No sales means death for business.  Under such circumstances, business owners need to undertake urgent actions to save their companies.  It is very risky to invest money without knowing own problems.

BSC system is a perfect tool for hr training evaluation

BSC system is a perfect tool for hr training evaluation

However, if you still decided to invest you need to think about primary and secondary investments.  Many businessmen often forget about investment in personnel.  They think that spending money for training employees is just a waste of time and money.  It is better to buy more computers offices or production facilities.  But who runs your business?  These are people.  If they are incompetent it doesn’t matter how much you invested – that people will be just unable to use that money properly.

For this reason training is very important in every company.  This is the best way to become better and make your employees better.  At the same time, training can be a really a waste of time and money if it is ineffective and addresses irrelevant problems and issues.  But how can you measure effectiveness of training sessions and efficiency of investment in personnel?

Balanced scorecard system is the answer.  This is a great tool for business performance evaluation used in all businesses fields.  Balanced scorecard system has a very simple principle.  The software evaluates KPIs which are known as key performance indicators.  Training is a complex process and if you made a mistake and the early stage you won’t be satisfied with the final results.

Balanced scorecard system makes it possible to measure every stage of the training process, from setting tasks and goals to conducting training sessions and what is more important applying obtained knowledge in real business.

As a rule, human resource department is in charge of training and coaching personnel.  If personnel is managed smartly that overall performance of the company will be improved.  Balanced scorecard system is an efficient tool for HR managers and other specialists who are in charge of training.

What KPIs are relevant for training metrics?  These are cost per employee, size of training budget, expected revenue rate per employee, cost savings, employees satisfaction and organization climate.  By the way, organization climate is very important in any company as satisfied employees with a positive attitude will always work better.

HR training improves personnel efficiency

HR training improves personnel efficiency

training dashboard

What is the best way to make your company better?  Is it buying new computers?  Refurbishing office?  Investing millions in you equipment and production facilities?  Well, these are quite effective and common methods of improving performance of a company.  But have you ever thought who earns money for your company?  Is it management board?  Is a general director?  Well these people are of very important and the company.  But at the same time ordinary employees are those who do everyday work and earn profits for the company dollar by dollar, concluding new contracts and finding new customers.  So this is personnel you should invest in personnel, as investments in personnel are known to be the most effective, lucrative and long lasting.

Use training dashboard to evaluate efficiency of training campaign

Use training dashboard to evaluate efficiency of training campaign

How can you make your personnel better?  This is a very easy question which has one definite answer – through training.  From time to time people working for your company need to undergo training.  The more professional personnel you have the more competitive your company is which is very important in today’s markets.

Training isn’t as easy as it might seem a different glance.  One needs to locate problems, select study material and organize proper training sessions.  Moreover, it is important to apply acquired knowledge in practice.  Theory is good, but theory does not drain any profits.  As known, earning money is the ultimate goal for any business.

Training evaluation is extremely important since ineffective training is just a stupid waste of money and time.  On the other hand, effective training will inevitably result in higher revenue rate, since your employees will work better and use knowledge to earn money for the company.

Smart and progressive managers use balanced scorecard system to properly evaluate training efficiency.  This is training dashboard consists of a number of KPIs – key performance indicators which show whether or not training campaign is effective.  It is very important to select major KPIs and focus on most important factors.

Cost per employee is considered one of the major KPIs in training dashboard.  This indicator shows how much money you spend for one training session for one employee.  Spending much money is good but then we need to consider another KPI – expected revenue rate.  So, if you spend more than you got then your training is ineffective.

You can also evaluate cost savings and track your training budget.  If it is increasing all the time and your revenue is growing that you’re on the right track.

Select the most important KPIs in training dashboard

Select the most important KPIs in training dashboard

Use reliable customer training evaluation methods

Imagine such a situation.  You have purchased the product or service and you have done some question regarding it. For instance it doesn’t work properly or you’re not satisfied with the service.  What do you usually do in such a situation?  Well, you go to the company web side and look for a toll free number to call customer support service.  And very often it is by conversation with a customer support service operator you form your judgment about the company, its service and attitude towards customers.  If you had a negative experience in talking to an operator, if you failed to receive answers to your question and your problem was never resolved you would never deal with this company, wouldn’t you?

This hypothetical example vividly illustrates how important customer support service is.  Most customers never see company management and they do not want to meet with the president of the company.  It is a customer support operator who represents a company for those few minutes of conversation.  If you have a bore customer support services you will scare off most of your customers, even the most loyal ones.  This is to say that customer support service managers and operators need to undergo training from time to time to raise professional level and improve business and communicative skills.

Customer training is a must for call center operators

Customer training is a must for call center operators

At the same time you need to make sure that you’re not wasting money by organizing such trainings.  Moreover, your employees (helpdesk operators) need to understand why they undergo such trainings and what they learn there.

As you can see, call center operators should always develop and improve their skills.  As a rule, this has a direct impact on the company performance and overall revenue.  More customers means more money.  And excellent customer support service creates at perfect image of the company.

Use customer training evaluation methods to improve performance of a call center

Use customer training evaluation methods to improve performance of a call center

By using balanced scorecard system you will be able to monitor professional level of your call center operators.  At the same time you will be able to locate problems and imperfections in the work of your personnel.  If some training sessions went wrong you will easily see that and look for appropriate solutions.

By the way, training sessions may positively affect the employees, as your call center operators will know their weak blinds and thus they will have additional motivation to work better.  Use of balanced scorecard system contributes to development of a positive organization climate which is very important factor in any successful company.

project management training

Project management is a cornerstone of business.  Companies and firms implement projects and get profits.  The project is a very complex structure, and sometimes it is not easy to implement for.  Projects can be big or small, but in all cases you have to be very professional to achieve positive results.  Project management is especially important if we’re talking about international business.  Here we have many factors influencing final success.

Project managers belong to the category of top managers be caused they are responsible for budgeting, looking for investors, allocating funds, selecting and hiring personnel for the project etc.  Product managers are also responsible for results.  If the project is successfully implemented the company gets sufficient profits and the personnel get bonuses and very valuable experience.

Use Balanced Scorecard system for project management training

Use Balanced Scorecard system for project management training

It is a common practice now, that employees undergo special training.  It is imperative that the personnel improves skills and acquires new knowledge.  At the same time this knowledge needs to be used in a real business environment, or in project management in our case.

Training a successful project manager is not an easy thing.  He is not an office clerk who does typical operations throughout the day.  The project manager assumes responsibility and makes independent decisions.  That is why project management training requires much time, effort and money.

Thus, the quality of project management training needs to be evaluated from time to time.  If your educate product managers and most of your products fail, then something is wrong with the way you are denies training sessions.

With the help of balanced scorecard system you will be able to locate problems and see what is wrong in the training process.  Knowing own mistakes is imperative to take countermeasures and find solutions.  Balanced scorecard system is a very popular tool employed by managers all over world.  This system evaluates KPIs that directly or indirectly represent overall performance of a company, department or an individual aspect of business performance.

KPI is a key performance indicator.  Such indicators differ from business to business.  In project management training these are cost per employee, cost savings, size of training budget and expect it and real revenue.  By measuring KPIs you can get an overall picture of your training program or training campaign.

Balanced scorecard system will also increase motivation and self confidence of project managers who will be aware of all mistakes, weak and strong points.

Project management training is important for any business

Project management training is important for any business

Training estimation is an important element of overall business performance evaluation

Have you ever thought why some companies are more successful than the others?  Some businesses have competitive advantage, others possess huge Financial Resources etc.  But a great number of companies succeed because they have the most professional personnel in a particular business area.  Effective and educated personnel is a key to success.  The more you invest in your employees the more you get.  Even if you have millions of dollars to invest in your company you need to educate people and teach them how to operate on a higher level, in that premier league of business.

At the same time you need to make sure that you efficiently use every dollar you spend for training.  As known, training sessions can seldom be a free of charge.  You need to pay for organization, you need to pay to coaches/lecturers.  Besides, your employees spent their personal all work in time to attend seminars.  If employees do not understand why the need such training and there are no results of such seminars, they will simply ignore your training campaign.

Use the best training estimation methods

Use the best training estimation methods

As you can see, ineffective training may result in lost of money, and it will spoil organization climate in your company whatever big or small if my to be a.  In order to avoid mistakes you need control every stage of the training session from organizing a training seminar to implementing results and using acquired knowledge in practice.

There are several ways to evaluate training efficiency.  But balanced scorecard system is known to be one of the best tools to measure business performance in any business field.  Use of balanced scorecard system is recommended to managers and human resource managers who are in charge of training personnel.  As said above, inefficient training sets your business in jeopardy.  You all are giving advantage to your competitors in such a way since you lose money and your employees are now becoming better.

It needs saying, that balanced scorecard system has one considerable advantage.  This tool measures individual KPIs which are key performance indicators.  In such a way you do not learn about all overall performance, but analyze particular elements influencing business performance.

In training metrics the following KPIs play a crucial role: cost per employee, savings cost, training budget and revenue (which is a result of training sessions).  By measuring these KPIs you will be able to find weak points in the training campaign and take necessary measures.

BSc system is the best tool for training estimation

BSc system is the best tool for training estimation

The right training benchmark will help you properly evaluate effectiveness of training seminars

If you really want to succeed in the modern world of business you need to be constantly developing your company.  The economy is still to no weak after the most severe financial crisis since the great depression.  Customers are unwilling to buy, so you have to think of the ways to improve performance of your company.

Tough competition in the market is the reality.  So, if you stop you will die.  Improving business means not only investments or business expansion.  Many businessmen prefer to invest in employees.  Investment in personnel proves to be the best way to invest money be caused these are people who work for your company and who actually profit it.

A training benchmark is an indicator of efficiency

A training benchmark is an indicator of efficiency

For this reason training is considered as one of the best ways to improve performance of the company.  Even if you have enough money and resources you may still fail in the market because of the staff incompetence.

Training sessions may be conducted in all departments of a company.  What is most important about training?  Sure, this is training efficiency.  No one wants to spend money in vain. Thus, it is extremely important to timely and properly evaluate training performance.  There are several most important training benchmarks which directly or indirectly influences the training and represent its efficiency.

These benchmarks are also called key performance indicators or KPIs for short.  But how can you evaluate KPIs?  Well, you will need a special system called balanced scorecard system which is very popular among managers all over the world.

Balanced scorecard system measures KPIs to give you the full picture of training performance in your company.  With the help of this tool you will be able to locate problems, find weak and strong points and look for relevant solutions to their problems.

Training benchmarks are not large in number.  Five or six is enough to see a and test a efficiency of training sessions seminars and other public actions aimed at improving performance of your personnel.

Balanced scorecard system presents results in per cents as well as in the forum of graphs which can be used at company meetings sessions of board etc.

One of the greatest advantages of balanced scorecard system is the ability of this tool to locate problems before they have serious consequences for your company and your business in general.

Besides, use of balanced scorecard system contributes to a positive organization climate in the company and increases employees satisfaction, as people know why they need training and what they need to learn.

Most important training benchmarks

Most important training benchmarks

What are key training indicators in training metrics?

It is impossible for any business to stay on the same level for a long period of time.  There is such thing as competition.  And competition can be a very tough.  Competitors have just one desire – to wipe you out.  This is what keeps all businesses alert.

So, if you want to survive in the Morton business you need to develop.  This development can be financial, organizational etc.  Improving business is pretty much about improving your personnel.  Modern companies always pay a special attention to training of personnel.  Making employees more professional is making your business more profitable.  Well trained employees can deliver services all the highest quality.

Key training indicators will show efficiency of training sessions

Key training indicators will show efficiency of training sessions

Of course, is to spend a certain amount of money to train some or all of your employees.  And sure you want to see results.  What are these results?  This is increased profits of your company.

At the same time ineffective training will will be a waste of time and money.  If an employee gain knowledge he should use it, otherwise why should he be instructed anyway?

As you can see, it is really important to evaluate performance of your human resource managers who organize training sessions for the personnel.  How can you do that?  Just use balanced scorecard system and you will see how efficiently you invest money in personnel.

Balanced scorecard system evaluates special indicators which of sort of alarm bells for any business.  These indicators are also called KPI – key performance indicators.  They differ in different businesses, but in this article we will review major KPIs in training evaluation and training metrics.

1.  Expected revenue increase.  Every training session has its goal.  But the most common goal of is to get profit.  In other words, if you spend $200 to train one employee you expect to get, for example, $400 in profits.  Track expected revenue increased rate and you will be able to track training efficiency.

2.  Cost per employee.  This is perhaps the most important indicator of all.  If you manage to invest little and get much your quite an effective businessmen.  At the same time be a reasonable and do not invest trifling sums.  The ratio of cost per employee and expected revenue increase vividly indicates how your training works.

3.  Cost savings.  Some training sessions aimed at saving costs so employees of taught to save.  This may be time, money, resources etc.

Use key training indicators to evaluate training efficiency

Use key training indicators to evaluate training efficiency