Published on March 12, 2014
EMPLOYEE TRAINING AND DEVELOPMENT: How To Measure Effectiveness and Impact
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How do you currently measure your training program and efforts? a. Don’t worry be happy - smile sheets all the way. b. Completion – at least they did something. c. We make an effort to track behavior changes. d. Data-driven – the more information and analysis the better. e. Something else.
What You’ll Learn: How to determine goals and key indicators? 3 2 1
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
KPI’S AND BENCHMARKS: How do you currently measure success? Use existing data to set benchmarks.
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.
KIRKPATRICK – PHILLIPS MODEL: KIRKPATRICK PARTNERS LLC 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
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
It's not the 95% that's right that makes something work; it's the 5% that's wrong that messes everything up. Measuring, Managing and Maximizing Performance Will Kaydos
ISOLATION TECHNIQUES: SYSTEM/PROCEDURE CHANGES INCENTIVE/MOTIVATION MANAGER SUPPORT/ATTENTION EXTERNAL FACTORS EFFECT OF LEARNING ON IMPROVEMENT TOTAL IMPROVEMENT AFTER PROGRAM LEARNING PROGRAM
71 69 68 69 70 71 68 65 62 58 55 52 0 10 20 30 40 50 60 70 80 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Average Days Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 TREND LINE ANALYSIS:
CONTROL GROUP: Recruiters and Hiring Mangers Group 1 Recruiters and Hiring Mangers Group 2
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 PESON LEARN THAT WAS NEW? HOW DID THIS PERSON USE THE LEARNING ON THE JOB? DID THE USAGE HELP PRODUCE A WORTHWHILE OUTCOME?
SUCCESS CASE METHOD: RECOMMENDED RESOURCE Telling Training’s Story by Robert O. Brinkerhoff 1. What, if anything, did this person learn that was new? 2. How, if at all, did this person use the new learning in some sort of job-specific behavior? 3. Did the usage of the learning help to produce any sort of worthwhile outcome?
TRAINING IMACT • Manager support. • Opportunities to apply learning. • Peer support. • On-demand access. • Senior management involvement.
FIVE 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 Design and conduct a survey to gauge overall success versus non-success rates.3 Conduct in-depth interviews of selected success and non-success instances.4 Formulate conclusions and recommendations, value, and return-on-investment.5
1. Identify performance areas. 2. Engage all of the key stakeholders. 3. Clarify and define success. 4. Establish the data points. Focus and plan the evaluation1
Create a model for success.2 Organizational Goals Business Unit Goals Employee Behaviors or Actions Employee Skills or Knowledge
Design and conduct a survey to gauge overall success versus non-success rates.3 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.
Conduct in-depth interviews with employees who’ve been BOTH successful and unsuccessful.4 HIGH PERFORMERSLOW PERFORMERS MANAGER SUPPORT OPPORTUNITY TO APPLY LEARNING PEER SUPPORT ON-DEMAND ACCESS TO RESOURCES SENIOR LEADER INVOLVEMENT
• Areas of increased performance • The VALUE of this increase • The costs to deliver value • Recommended improvements to increase value Develop conclusions, write action plans and implement needed changes.5 RECOMMENDED RESOURCE Course Title: Developing Others - Connect every employee's individual goals to the organization's vision and strategy
BIZLIBRARY.COM REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES MANAGERS Goal: Reduce time to fill open positions from over 70 days to less than 55. Value: The expected value to be gained is measured by using the average revenue generated by new sales reps in their first 90 days of work on a per day basis, and the added value realized in the first 6 months of employment for each day we can get them onboard and trained more quickly. $435/day $32,000 In six months The average rep closes two more deals at an average value of $16,000 each when they started in 60 days after position opened. First 90 days.
BIZLIBRARY.COM Training Costs: Human Resources: $45,000 Sales: $15,000 Total: $60,000 Impact: Seven reps were hired with an average reduction of 10 days saved per rep in the six month time frame of the study. Value Added From Improved Performance: 7 reps X 10 days each = 70 days. 70 days saved were worth $30,450. 4 of 7 reps started in 60 days or less after open position. $128,000 added in new sales. TOTAL VALUE GAINED: $158,450 on a $60,000 program. Other Factors: Better communication and cooperation between sales managers and HR recruiters meant the candidates being interviewed fit a success profile for sales reps more clearly than before the program started. We also learned that social media sourced candidates tended to be more successful in the first six months than blind applicants. REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES MANAGERS
Key Ideas Can I apply it today? 3 2 1
BIZLIBRARY.COM In a world of learning and development where complexity is the enemy… simple and nimble approach… MICHAEL ROCHELLE Chief Strategy Officer Brandon-Hall Group
BIZLIBRARY.COM Course: Organizational Effectiveness - Take action to provide the resources employees need for success Target: Managers Providing Resources - Define the strategic priorities for the department and align the required resources Target: Managers
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