According to the Association for Talent Development (ATD), companies that offer comprehensive training programmes have 218% higher income per employee than companies without formalised training. What’s more, such companies oversee a 24% higher profit margin than those who spend less on training.
Aside from profitability, a study by Udemy found that 80% of employees said that learning and development opportunities would help them feel more engaged at work.
These statistics outline the importance of monitoring your L&D strategy. With this in mind, we have put together 5 KPIs to track the success of your L&D strategy.
How can I select the right training KPIs?
Aligning key performance indicators and business goals will allow you to identify the aspects of your learning and development programme that work well, as well as aspects that need further improvement. Therefore, learning and development KPIs not only allow you to measure your L&D programme but also track the impact of learning and development on the business.
The combination of training metrics such as progress and assessment scores with business metrics and performance goals should form the basis when selecting your training KPIs.
Additionally, KPIs should be quantitively measurable and identify performance gaps. This will help confirm the correct measures to take to solve these problems.
Let’s look more in detail into 5 KPIs in L&D that will enable you to adopt an effective strategy for evaluating training effectiveness.
1. Knowledge gained in practice
Investment in learning and training should translate to results for both learners and the organisation as a whole. In short, the degree to which employees are able to apply and leverage the information they learn in their jobs is a measurable ROI indicator.
Analysis and performance data from bespoke eLearning systems can help to assess this indicator. Within this, it is possible to understand and review how to make it easier to apply the knowledge acquired at work.
2. Time to proficiency
Time to proficiency refers to the time taken by an individual to acquire the skills and knowledge necessary to reach the desired level of performance. This indicator is particularly important for measuring the effectiveness of training.
Resolution Digital’s bespoke learning systems are designed to ensure the learning process is as simple and enjoyable as possible, which in turn shortens time spent learning. As well as this, a bespoke system allows you to leverage training analytics to check both the average and individual time required to complete the training.
3. Training performance vs performance of the organisation
The investment in effective training systems and L&D resources inevitably leads to aspects such as higher employee satisfaction, but ultimately leads to increased sales and/or improved quality of services provided by the organisation.
The measurement of performance metrics on individuals, specific teams, and the organisation on the whole, and comparing the difference of these metrics before and after training, will allow you to assess the return on investment of your L&D strategy. The impact of training vs performance at work can help shape the scope for the future in terms of learning and development, as well as define new performance goals.
4. Employee retention
Employee Retention, though not so simple to measure, is a key performance indicator that can highlight where you lack in terms of learning and development opportunities.
Lack of support and development can lead to lower levels of employee satisfaction, which in turn leads to higher staff turnover. For example, Work Institute’s 2018 Retention Report outlines that nearly one-third of employee turnover was due to unsupportive management and a lack of development opportunities.
Whilst there may be a natural resistance to investing in a comprehensive L&D strategy and a bespoke online learning system, studies show that rehiring, more often than not, costs more than retaining. Therefore, the investment in sufficient and effective L&D resources means that, in the long run, time and money will be saved.
5. Knowledge retention
To put it simply, it is easy for employees to forget new information if it is not put into practice. To solve this problem, Resolution Digital’s expert team aims to make learning more engaging and information easier to retain. Through bespoke video production, short but informative modules, and personalised eLearning content, we work with you to create bespoke courses that allow information to be easily retained. It is also important that employees have easy access to the information post-training and can return to it at any time. This indicator can be measured by comparing scores using pre-course and post-course tests.
How Resolution Digital can help
Our expert team combines knowledge and expertise, a collaborative approach, and creativity to deliver comprehensive and robust eLearning platforms for globally recognised organisations. We work in partnership with you to enhance your learning and development needs and identify the best solution to deliver powerful and engaging content virtually. Enquire now to get started on improving your learning and development strategy.