Why is it important to train personnel and measure training process?

Nowadays too many business owners forget that the supreme value of their companies is the people who work there.  But the recent financial crisis has vividly demonstrated that well educated and efficient personnel is the key to success.  Those companies who had the best human resources managed to survive the crisis and even increase their profits and in large customer base.  This all became possible because these companies had a comprehensive strategy.  It is strategic planning that can lead a company to success.  In the modern markets short term goal policies sometimes prove to be ineffective.

This is how training works

This is how training works

That is why it is very important to train and educate personnel.  Moreover, this training should be economical if effective.  It is evident that an employer should spend a certain amount of money to educate one employee.  And naturally, an employer expects employee to work better and bring more profits for the company.

An efficient HR department needs to conduct training sessions for employees in such a way so that the entire company benefits from it.  Every training session should have its goals.  At the same time, employees should understand why the need such a training.

Use of balanced scorecard in evaluation of training will help both managers, HR specialists and ordinary employees better understand the importance of training sessions, their efficiency and expected financial gains.

Balanced scorecard uses the principle of key performance indicators evaluation.  Every business or any business aspect has its own set of KPIs.  Training also has specific key performance indicators which help managers find out whether or not a training session was effective.

Training KPIs to be measured

Training KPIs to be measured

So, what are these key performance indicators?

First and foremost, this is cost per employee.  As said above, the company spends a certain amount of money to train one employee.  One needs to keep balance here, as saving too much and training may result in low education level of the personnel.  This leads us to the next KPI which is expected revenue per employee.  Obviously, the company wants to have profits resulted in education of personnel.  So if the company gets profits as a result of training sessions it means that the training was in general effective.

Training budget is in another indicator one should pay a special attention.  If the company manages to gradually increase this budget and at the same time increase profits this signals that the training campaign proves to be effective.

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