Learn the most commonly used training and development indicators to measure the performance of corporate training programs.
A training plan that prepares people to achieve business objectives is only possible when supported by the right information. According to research, data-driven companies are 58% more likely to achieve revenue goals.
Training KPIs (Key Performance Indicators) allow you to assess whether the value invested in training is generating the expected return.
According to the LinkedIn Learning Report, 41% of training and development leaders expect to have a larger budget for the area in the coming years, and there is no more efficient way to justify the budget than by presenting solid statistics and metrics to support the initiatives you propose.
In this article, we will discuss how to measure the effectiveness of training and provide a complete mapping of the training and development metrics that show whether your company is on the right track and what adjustments are needed.
What are the benefits of closely monitoring training and development indicators?
In addition to a better understanding of the results of training developed in the company, data-driven training management brings other benefits:
- Greater visibility into the return that training brings to company performance and business needs, ensuring the training budget
- Demonstrating in numbers that the company is progressing in nurturing an organizational culture focused on continuous learning
- Obtaining more precise information to decide future training plans, including different training components such as attractiveness, time dedicated, and quality
- Evaluating adherence to upskilling goals
- Maintaining an internal talent pipeline for recruitment and internal mobility
Training and development metrics and indicators to assess training effectiveness
You don’t need to monitor all training metrics; it is important to select those that best align with the current objectives of the business and the niche of your organization.
Here are some of the main training and development metrics evaluated by companies to measure effectiveness:
#1 Participation Rate
The participation rate is a fundamental metric for assessing employee participation in company training programs. It represents the proportion of employees who effectively participated in the trainings relative to the total number of eligible employees to participate.
Monitoring this metric over time allows evaluating the effectiveness of company communications about training programs and verifying if the offered trainings are aligned with the needs and demands of different departments and professionals.
#2 Engagement Rate
While the participation rate focuses on the quantity of participation, the engagement rate evaluates the quality and level of employee participation during training.
This can include factors such as active participation in activities, interaction with instructors and colleagues, completion of practical tasks, and demonstration of genuine interest in the training content.
Engagement in training activities reflects not only the quality of the provided training but also can express how much a person is committed to the company and work in general.
Some ways to maintain good engagement in training:
- Provide relevant training for each position and career plan
- Create individual development goals
- Send periodic reminders to meet established goals
- Opt for trainings that allow flexible schedules
- Choose content that makes sense for the real world
#3 Completion Rate
The completion rate in trainings is a metric that measures the number of participants who successfully completed a training program relative to the total number of participants who started the training.
It represents the percentage of employees who went through all the training content or activities and achieved the established objectives.
A low completion rate may indicate issues with teaching methodology or how training is delivered.
If the completion rate varies significantly between different courses or groups of participants, this may indicate the presence of specific barriers or obstacles preventing some employees from completing the training.
#4 Number of hours studied
To progress in any upskilling program, it’s necessary to invest time, and that’s what this metric is about: assessing if people are dedicating hours to learning.
To make this training KPI more effective, it makes sense to set goals for each person at the beginning of the program, a certain number of hours to dedicate to the courses.
The number of hours people invest is also related to job satisfaction, with research indicating that those who study more are more confident, successful, and happy at work.
#5 Evolution of Skill Assessment Scores
With this training metric, it’s possible to assess a person’s progress in a specific training program, conducting an initial assessment before the program begins and setting a deadline to redo the same assessment.
For example, a company may start a language upskilling program for the sales team, assess proficiency with a test before the start, and then conduct the same test after the first phase of the program.
#6 Employee Satisfaction
Employee satisfaction with the training offered is often assessed through training evaluations, with questions capable of evaluating all parts of the training and in relation to quality and usefulness.
#7 Application Rate in the Workplace
The proportion of learning that is effectively applied in the work environment and represents a percentage of employees who applied the skills acquired during training in their daily tasks.
A high application rate of skills suggests that the trainings are providing practical and relevant knowledge that employees can use to improve their performance at work.
#8 Employee Retention
The employee retention rate represents the percentage of employees who choose to stay in the company and may be correlated with participation in trainings.
This metric provides valuable information about the effectiveness of the organization’s talent retention strategy, as the opportunity to learn and develop new skills is one of the main factors influencing employees’ decisions about whether to stay in a company or not.
This metric not only indicates the effectiveness of the training itself but also its influence on talent retention and employee commitment to the organization.
#9 Internal Mobility
The internal mobility rate is a metric that measures the proportion of employees who change positions or departments within the company within a certain period of time.
In relation to the quality of the training offered by the company, the internal mobility rate can provide some important indications, such as the relevance of the training and the quality of the career development program.
#10 Promotion Rate
The employee promotion rate is a metric that measures the frequency with which employees are promoted within the company during a certain period of time.
The promotion rate can be an important indicator of the quality of the training offered by the company, providing information about its relevance, effectiveness in skill development, and impact on career advancement and talent retention.
#11 Cost per Trained Person
This training and development KPI considers the total investment for a training course, for all courses in an area, or for all employees of the company.
This indicator can be used to analyze the evolution of investment per person over time, analyze future investments, and compare with similar companies in the market.
#12 Training ROI
ROI (Return on Investment) is a financial metric used to assess the profitability and efficiency of a business investment or initiative. ROI measures the performance or profit of an investment relative to its cost.
For corporate learning plans, it works similarly, with the difference lying in how we measure the “Benefit” factor, which will depend on the type of training and benefits obtained.
#13 Impact on Team Performance
The impact of training can be measured at the team and department levels. This can be measured when there is a specific challenge in an area and several workers are trained, and as a result of this, a specific indicator improves, such as team downtime.
#14 Impact on Individual Performance
In addition to reflecting the business objectives, an efficient training plan also reflects each individual in the organization and their professional development, including individualized learning paths.
When the analysis of training needs reflects areas of improvement, the result of monitoring the individual plan should be reflected in performance improvement in periodic evaluations conducted by managers, completed projects, and goals achieved.
#15 Improvement of Product or Service Quality
Quality improvement metrics, such as data obtained in product quality inspections and customer service quality surveys, for example, can be strong indicators of the success of the training strategy and are directly associated with the business objective.
#16 Time to Competence
Time to competence, which is the average time needed for employees to acquire the skills and competencies taught during training, is a metric that can provide valuable information about the effectiveness of the content and the chosen methodology.
If the time to competence is long, it may indicate that the training content is not fully aligned with the employees’ needs or that the training delivery methodology is not effective.
A shorter time to competence may reflect a skilled and experienced instructor or facilitator, capable of conveying the content clearly and engagingly, facilitating employee learning.
#17 Reduction of Errors or Rework
When trainings are conducted to work on reducing errors and rework, the lower incidence is the main indicator, such as the reduction of workplace accidents after an intensive training on safety practices and use of personal protective equipment (PPE).
Conclusion
What can be measured is managed more easily, and L&D metrics and indicators allow for a strategic view of team competency management.
A fundamental role you have as a training professional is to have training and development seen as an investment rather than an expense, and closely monitored metrics provide more visibility on the effectiveness of training and inform decisions on which training to prioritize and invest in.
On the Voxy platform, you have access to a comprehensive dashboard with various metrics that will provide you with data-driven insights you need to ensure the success of the T&D area. Schedule a conversation with Voxy.
