Employee training is crucial for any business, but it’s also not cheap. For example, in 2021,
US businesses collectively spent 92.3 billion dollars training their employees.
But how can you know whether the money spent on training is worth it?
The answer is simple: you need to measure training ROI. Let’s find out how.
*MUSIC*
Hi, I’m Neelie. Welcome to this episode of Learning Bites. In today’s video,
we’ll talk about what training ROI
is and how you can measure it using the Kirkpatrick model of training evaluation.
If you want to know more about how you can use the Kirkpatrick model, check out our in-depth
guide on Measuring Learning Effectiveness using the link in the description below. And as always,
don’t forget to subscribe to our channel, hit the notification button, and like this video!
Now let’s dive in!
Training ROI measures how much an organization gains from its investment in training. It measures
the impact of training on the trainee’s knowledge, skills, performance, and the company’s ROI.
You need to measure training ROI to:
Make a case for spending money on training Ensure that you’re investing in
the right training programs Prioritize training that has the
highest impact on your organization Quantify the value of your training
To measure training ROI, you can use the Kirkpatrick Model of Training
Evaluation. This is a four-level model used to determine a training program's effectiveness.
The first level is Reaction. The second
is Learning. The third is Behavior and the last level is Impact.
Now let’s take a closer look at each level.
Level 1: Reaction
At this level, you need to evaluate learners’ reactions
and responses to the training. Your goal is to understand participants’ level
of satisfaction and identify any patterns and areas for improvement.
KPIs for level 1 include:
Participation rates
Completion rates Net promoter scores
You can gather the data for these KPIs
using surveys and questionnaires. You can use questions such as:
On a scale of 1 to 10, how valuable did you find this training?
On a scale of 1 to 10, how likely would you recommend this training
program to a colleague? Level 2: Learning
The focus of this level is on finding out the knowledge and
skills your employees have gained after your training.
KPIs for level 2 include: Acquired knowledge and/or skills
Transfer of training into daily performance
You can measure this by observing employees’ performance on the job and noting if there is
any improvement or if they’ve gained any new skills. You can use peer reviews,
assessments, or pre and post-training questionnaires. Include questions like:
How confident are you in your ability to perform in your job since your training?
What did you learn from your training to help you perform at a higher level in your role?
Level 3: Behavior
At this level, your goal is to find out how your employees’ behaviors have changed
due to training, and to what degree.
KPIs for level 3 include:
Employee engagement Morale
This can be measured through observation and reviews pre and post-training. Ask questions like:
How have you put what you learned in training to use in your job?
How confident are you in teaching your acquired knowledge and skills to someone else?
Do you feel like your behavior is different now than it was before the training?
Level 4: Impact
The goal of the final stage is to measure your training’s impact
on business results. You need to look for key indicators such as:
Increased employee retention Higher productivity
Higher sales Customer satisfaction
You can use focus groups to measure customer satisfaction, conduct
interviews with managers to see if they notice a change in employee productivity,
and analyze data on employee turnover and commercial performance.
And that’s how you can use the Kirkpatrick model to measure training ROI. If you want
to learn more about this model, download our guide on How to Measure Training Effectiveness
using the link in the description below.
In the meantime, don’t forget to like our video, hit the notification button,
and subscribe to our channel.
See you soon!