The document discusses methods for measuring the effectiveness and impact of employee training programs, highlighting the importance of setting clear goals and key performance indicators (KPIs). It outlines a five-step process to create a measurement plan and references historical figures and models in training evaluation, such as the Kirkpatrick and Phillips models. Additionally, it presents a case study demonstrating the financial return on investment from improved employee performance due to targeted training efforts.

1. EMPLOYEE TRAINING AND DEVELOPMENT:
How To Measure
Effectiveness and Impact

2. ?
How do you currently measure your training program and efforts?

3. WHAT WE HOPE YOU’LL LEARN
Training metrics – where we’ve been and where we’re going.
How to determine goals and key indicators.
Five step process to create a measurement plan.

4. BIZLIBRARY.COM
Overall spending on
employee training in U.S.
organizations is $164 billion.
COMPANY SIZE (# of Employees)
Smaller organizations typically spend more per employee than larger organizations.
$700
$964
$1,800
COST PER EMPLOYEE PER YEAR
$1,195

5. KPI’S AND BENCHMARKS
How do you currently measure success
Use existing data to set benchmarks
Key Performance Indicators for employees and the organization

6. MEASUREMENT AND BUSINESS
1951: EDWARD DEMING
The power of analytics to drive improvement.
1954: PETER DRUCKER
The business of management and the knowledge worker.
1959: DONALD KIRKPATRICK
Measuring the impact and ROI of training.
1970: JACK PHILLIPS
Data-driven return on investment.

7. KIRKPATRICK™ – PHILLIPS MODEL
LEVEL 1
REACTION
participant satisfaction
LEVEL 2
LEARNING
knowledge, skills and attitudes
LEVEL 3
BEHAVIOR
Application and on-the- job learning
LEVEL 4
RESULTS
business impact
LEVEL 5
RETURN ON INVESTMENT
KIRKPATRICK PARTNERS LLC

8. THE COST OF ONE GALLON OF GAS
2013: $3.61
1970: $0.36
1959: $0.25
2013: $271,600
THE AVERAGE COST OF A
NEW HOUSE
1959: $12,400
1970: $23,500
2013
1970
1959
SPUTNIK – launch of first manmade satellite
FIRST FLOPPY DISK
3D PRINTING
THEN AND NOW

9. It's not the that's right that makes something work; it's the that's wrong that messes everything up.
Measuring, Managing and Maximizing Performance
Will Kaydos
5%
95%

10. ISOLATION TECHNIQUES
SYSTEM/PROCEDURE CHANGES
INCENTIVE/MOTIVATION
MANAGER SUPPORT/ATTENTION
EXTERNAL FACTORS
EFFECT OF LEARNING ON IMPROVEMENT
TOTAL IMPROVEMENT AFTER PROGRAM

11. TREND LINE ANALYSIS

12. CONTROL GROUP
Recruiters and Hiring Managers Group 1
Recruiters and Hiring Managers Group 2

13. OTHER METHODS
PARTICIPANT AND MANAGER ESTIMATION OF IMPACT – only as good as the employees ability to provide information.
SENIOR MANAGEMENT ESTIMATION – bias and simple human error.
SUCCESS CASE METHOD – what did this person learn that was new? how did this person use the learning on the job? did the usage help produce a worthwhile outcome?

14. SUCCESS CASE METHOD
What, if anything, did this person learn that was new?
How, if at all, did this person use the new learning in some sort of job-specific behavior?
Did the usage of the learning help to produce any sort of worthwhile outcome?
1
2
3
SOURCE: Telling Training’s Story by Robert O. Brinkerhoff

15. TRAINING IMPACT
Manager Support
Opportunities to apply learning on the job
Peer support
On-demand access
Leadership involvement

16. STEPS TO CREATE A MEASUREMENT AND EVALUATION PLAN
Focus and plan the evaluation.
1
Create an impact model that defines potential results and benefits.
2
Survey to gauge overall success versus non-success rates.
3
Select success and non-success instances.
4
Formulate conclusions and recommendations, value, and return-on-investment.
5
5

17. FOCUS AND PLAN THE EVALUATION
Identify performance areas
Engage all of the key stakeholders
Clarify and define success
Establish the data points

18. CREATE A MODEL FOR SUCCESS
Organizational Goals
Business Unit Goals
Employee Behaviors or Actions
Employee Skills or Knowledge

19. GAUGE OVERALL SUCCESS VS. NON-SUCCESS RATES
WHICH STATEMENT BELOW BEST DESCRIBES YOUR EXPERIENCE SINCE PARTICIPATING IN THE PERFORMANCE MANAGEMENT TRAINING?
•I learned something new, I have used it, and it has led to some very worthwhile results.
•I learned and tried some new things but can’t point to any very worthwhile results yet.
•While I may have learned something new, I have not been able to use it yet.
•I already knew about and was doing the things this training taught.
•I don’t think I can really use what I learned in the training.

20. SELECT SUCCESS AND
NON-SUCCESS INSTANCES
MANAGER SUPPORT
OPPORTUNITY TO APPLY LEARNING
PEER SUPPORT
ON-DEMAND ACCESS TO RESOURCES
SENIOR LEADER INVOLVEMENT

21. RECOMMENDATIONS, VALUE, AND ROI
Areas of increased performance
The value of this increase
The costs to deliver value
Recommended improvements to increase value

22. REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPS
Goal: Reduce turn around time on bug fixes from an average of 21 days to 10 days.
x
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23. $1,155,000
80% OF THE BUGS REQUIRED A RETURN OF THE WRITTEN REPORT TO THE REP FOR CLARIFICATION.
$50 / DAY – OVER 6 MONTHS – 1,100 BUGS
VALUE:
The expected value to be gained is measured by using the average revenue lost for each day the service is down for customers due to sloppy or unclear written explanations of bugs to the programmers.

24. TRAINING COSTS:
Human Resources: $90,000
Reps: $300.000
Total = $390,000
VALUE ADDED FROM IMPROVED PERFORMANCE:
500 reps X $600/day/rep
Access to online writing courses including time to take and complete 5 courses each and successfully complete writing evaluations to prove increased skills. 2 HR reps needed to administer program and build writing evaluations.
IMPACT:
•Less than 10% of written reports of bugs were returned for rewrites in 6 months after program.
•Average bug fix reduced from 21 days to 12 days.
•Total bugs affected 1,210.
TOTAL VALUE GAINED:
$544,500 ON A $390,000 PROGRAM

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26. BIZLIBRARY.COM
Jessica Petry
Sr. Marketing Specialist
jpetry@bizlibrary.com
@JessLPetry
@BizLibrary
Chris Osborn
Vice President of Marketing
cosborn@bizlibrary.com
@chrisosbornstl