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Value of training and people development

Value of training and people development

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What is the value of Training and People Development and how to measure the value of training? - Full Blog here https://blogs.sap.com/2020/12/15/what-is-the-value-of-training-and-people-development-and-how-to-measure-the-value-of-training/

In some cultures, the value of personal development is top of mind as it means advancement in personal prosperity. Even in our more saturated society where learning and training is often free and easy to get, it is seen as important – however, investments in learning always compete with other investments. To help our community, I try to sum up why those investments make sense and how to measure it.

What is the value of Training and People Development and how to measure the value of training? - Full Blog here https://blogs.sap.com/2020/12/15/what-is-the-value-of-training-and-people-development-and-how-to-measure-the-value-of-training/

In some cultures, the value of personal development is top of mind as it means advancement in personal prosperity. Even in our more saturated society where learning and training is often free and easy to get, it is seen as important – however, investments in learning always compete with other investments. To help our community, I try to sum up why those investments make sense and how to measure it.

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Value of training and people development

  1. 1. EXTERNAL Value of Training and People Development 25th November 2020
  2. 2. 2© 2020 SAP SE or an SAP affiliate company. All rights reserved. ▪ Why is training and people development important for business success? ▪ What are the benefits? ▪ How to measure the benefits? ▪ Summary and next steps ▪ More resources Agenda
  3. 3. 3© 2020 SAP SE or an SAP affiliate company. All rights reserved. Please indicate your background ▪ Learning & Development / Human Resources ▪ Information Technology ▪ SAP Partner ▪ Student ▪ Other area e.g. Marketing, Controlling Poll
  4. 4. Why is training and people development important for business success?
  5. 5. 5© 2020 SAP SE or an SAP affiliate company. All rights reserved. 4 Reasons why it is important to look at the Value of Learning  Decision Support  Comparing alternatives  Summative Evaluation  Efficient and effective use of ressources Strategy & Steering Learner Focus  Data needed for personalization & augmentation  Predictions, recomendations, chatbots Continous Improvement  Monitoring to adapt & improve Positioning  KPIs/ Numbers needed as management thinks in numbers & money
  6. 6. What are the benefits?
  7. 7. 7© 2020 SAP SE or an SAP affiliate company. All rights reserved. What is the benefit of Learning & Development in general Better Innovation Adoption of processes, tools, business models Adapt to new workforce demands due to market changes Increased employee engagement, satisfaction & retention Quality Improvement - Competent people make less errors Higher Productivity & Performance of individuals, teams organizations Better CX via competent employees
  8. 8. 8© 2020 SAP SE or an SAP affiliate company. All rights reserved. Hard Facts about the Impact of Learning in Successful Organizations Organizations mature in upskilling achieve the following outcomes compared to less mature: 60% stronger corporate culture and employee engagement vs 23% 43% higher workforce productivity vs 17% 37% greater business growth vs 15% 51% greater innovation and accelerated digital transformation vs 15% 35% reducing skill gaps and mismatches vs 10% Even a small increase in the number of hours of training — as little as 9 hrs training/person — increases an enterprise system project's success rate from 50% to more than 80%. 2 Top-performing organizations simply spend more time on learning and training activities, and involve more stakeholders in learning programs.4 1: PWC CEO Survey 2020: https://www.pwc.com/ceosurvey#cs23DataExplorer 2: May 2013, IDC #241126, Volume: 1 IT Education and Certification: Customer Needs and Strategies 3: McKinsey, https://www.mckinsey.com/business-functions/organization/our-insights/the-essential-components-of-a-successful-l-and-d-strategy 4:– “Building t: he Learning Business Case: The ROI of a Next-Generation LMS,” SAP SuccessFactors, September 2015 An investment as low as US$1,500 per employee in training increases profit margins by 24%, on average.4 ..companies3 that invest in developing leaders during transformations are 2.4 times more likely to hit their performance targets
  9. 9. 9© 2020 SAP SE or an SAP affiliate company. All rights reserved. Scientific meta-analysis: Informal learning activities lead to 32% higher performance Cerasoli, C. P., Alliger, G. M., Donsbach, J. S., Mathieu, J. E., Tannenbaum, S. I. & Orvis, K. A. (2018). Antecedents and outcomes of informal learning behaviors: A meta-analysis. Journal of Business and Psychology, 33(2) Scientific meta-analysis: Formal training leads to 23% higher job performance Arthur, W., JR., Bennett, W., JR., Edens, P. S. & Bell, S. T. (2003). Effectiveness of training in organizations: A meta-analysis of design and evaluation features. Journal of Applied Psychology, 88(2) Scientific research shows clear value of Learning & Development
  10. 10. 10© 2020 SAP SE or an SAP affiliate company. All rights reserved. Top 10 Global Work Preferences → employees rate Learning over Job Security! Source: http://www3.weforum.org/docs/WEF_Towards_a_Reskilling_Revolution.pdf
  11. 11. 11© 2020 SAP SE or an SAP affiliate company. All rights reserved. Skill demands change rapidly according to World Economic Forum Source: http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf On average, employers expect to offer reskilling and upskilling to just over 70% of their employees by 2025.
  12. 12. 12© 2020 SAP SE or an SAP affiliate company. All rights reserved. Global Sales Challenger Program improves business KPIs Examples from SAP internally show different value KPIs Social Selling Training for Channel Managers increases social reach
  13. 13. 13© 2020 SAP SE or an SAP affiliate company. All rights reserved. People Analytics example SAP internal focus on new managers
  14. 14. 14© 2020 SAP SE or an SAP affiliate company. All rights reserved. Source: Survey by ECLF https://www.linkedin.com/company/eclf/ New Challenges in the Covid times for Corporate Learning
  15. 15. 15© 2020 SAP SE or an SAP affiliate company. All rights reserved. Adapting focus on what value means in the time of coronavirus (McKinsey, 2020) Source: https://www.mckinsey.com/business-functions/mckinsey-accelerate/our-insights/adapting-workplace- learning-in-the-time-of-coronavirus ".... what is clearly different today is that keeping people safe and reducing risk has, for now, displaced cost as the key driver behind digital learning."
  16. 16. 16© 2020 SAP SE or an SAP affiliate company. All rights reserved. What is the value of learning for you and your organization? Any concrete evidence? ▪ Post the answer in the Chat Chat
  17. 17. How to measure the benefits
  18. 18. 18© 2020 SAP SE or an SAP affiliate company. All rights reserved. Evaluating the impact of learning is the key priority in Learning & Development Source: https://learning.linkedin.com/content/dam/me/learning/resources/pdfs/LinkedIn-Learning-2020-Workplace-Learning-Report.pdf
  19. 19. 19© 2020 SAP SE or an SAP affiliate company. All rights reserved. https://go.brandonhall.com/l/8262/2020-10-21/b7r7zb Measuring Learning’s Impact (Research Summary) Why? Current Reasons of Learning Measurement
  20. 20. 20© 2020 SAP SE or an SAP affiliate company. All rights reserved. Source: https://learning.linkedin.com/content/dam/me/learning/resources/pdfs/LinkedIn-Learning-2020-Workplace-Learning-Report.pdf What? According to LinkedIn Workplace Learning Report, still basics & input is measured
  21. 21. 21© 2020 SAP SE or an SAP affiliate company. All rights reserved. Kirkpatricks 4 Levels – see further infos here Reaction - degree to which participants find the training favorable, engaging and relevant to their jobs Learning - degree to which participants acquire intended knowledge, skills, attitude, confidence and commitment based on participation in training Behavior - degree to which participants apply what they learned during training when they are back on the job Results - The degree to which targeted outcomes occur as a result of the training and the support and accountability package Jack J. Phillips ROI Model – see see further infos here Process Model, empiric approach How? Some helpful frameworks to measure the value of learning Oldschool, but a good start
  22. 22. 22© 2020 SAP SE or an SAP affiliate company. All rights reserved. High performance measurement impact model by brandon Hall.com Some helpful frameworks to measure the value of learning, cont.
  23. 23. 23© 2020 SAP SE or an SAP affiliate company. All rights reserved. Learning Analytics has a high maturity at academia Grid can be used for self- assessment or inspiration for learning measurement Some helpful frameworks to measure the value of learning, cont. high performance measurement impact model
  24. 24. 24© 2020 SAP SE or an SAP affiliate company. All rights reserved. Where do you stand with Learning Analytics? • Input Data • Reaction/ Satisfaction • Learning • Behavior • Results/ Impact • ROI Poll
  25. 25. 25© 2020 SAP SE or an SAP affiliate company. All rights reserved. • Focus on decision support instead of justification • Move from reporting to analytics • Fokus on measuring output & process instead only Input • Look at ROE – Return on Expectations – not only ROI • Measure Impact via KPIs in an agile world Summary & PoV based on my experience
  26. 26. 26© 2020 SAP SE or an SAP affiliate company. All rights reserved. Register for the Wecasts or check out whitepapers & assets under https://www.sap.com/valueofsaptraining
  27. 27. Thank you – Time for Q & A

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