In Week 1 we set out to define the criteria for what matters to the organisation. This is how we are able to determine whether our training really matters. The four key criteria we identified were:
1. The efficiency of the training function
2. Key performance indicators for the organisation
3. Return on training investment
4. The organisation’s psychological capital
In Weeks 2 & 3, we looked at the actual efficiency of the training function and we offered the key measurement criteria/data from the efficiency of the training function and its potential impact on the organisation’s KPIs.
We now turn our attention to return on investment. There are essentially 2 aspects to this:
1. Decide upon at what aspect of learning impact you want to measure i.e. the impact of the learning intervention itself; the impact of the learning back in the learner’s workplace; the impact of any longer term behaviour changes in the learner; the ultimate impact on the business. This decision should be based upon what is manageable and what can be currently used to engage line management.
2. Make a provision in the training budget for doing this, working together with line management.
From a business perspective, it will also be important to keep it simple and this can be achieved via cost and benefit statements, even where the benefits are perceived ones and not necessarily measurable without getting into some complex calculations.
From an organisational development (OD) perspective, the return on our investment can be measured by careful choosing the most appropriate from:
a) The time people take to achieve a level of competence
b) The proportion of people with a required competence level
c) Customer feedback data
d) Employee engagement data
e) Numbers of people capable/deemed capable of moving into key positions
f) Achievement/movement against performance management criteria
g) People’s reaction to the learning intervention and post learning intervention
h) Cost and benefit statements for specific learning interventions
i) Performance data on HR targets i.e. absence, retention, internal promotions, health & wellbeing etc.
Next week, we consider why psychological capital matters.