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How To Measure Competency-Based Training - Elearning Industry

To measure the effectiveness of competency-based training programs and calculate their ROI, organizations should: 1) Define key measurable competencies and desired outcomes; 2) Design assessments to evaluate competency levels before and after training; 3) Gather feedback from supervisors and peers on behavior and performance changes; 4) Calculate ROI by comparing costs to gains in areas like productivity, customer satisfaction, and revenue.

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78 views6 pages

How To Measure Competency-Based Training - Elearning Industry

To measure the effectiveness of competency-based training programs and calculate their ROI, organizations should: 1) Define key measurable competencies and desired outcomes; 2) Design assessments to evaluate competency levels before and after training; 3) Gather feedback from supervisors and peers on behavior and performance changes; 4) Calculate ROI by comparing costs to gains in areas like productivity, customer satisfaction, and revenue.

Uploaded by

Toto Subagyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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How To Measure Competency-Based Training - eLearning Industry 31/05/22 03.

57

Measuring Your Competency-Based


Training Framework For Better ROI
Lubos Janoska May 11, 2020 | Sponsored

Competency-based training, like all other learning models, must prove its
worth. To realize a Return On Investment (ROI) organizations need to
know how to measure competency and how an employee's competencies
affect the bottom line.

eBook Release

Competency-Based Learning: Increase Employee Skills


Development Through Competency-Based Learning

Create the competency-based learning program that is right for your


organization.

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Download the eBook

As we described in our first article in this series, The Importance Of


Competency-Based Learning In Employee Skills Development, a
competency represents the ability to apply, transfer, and combine
knowledge and skills in different situations and work environments to
carry out the activities required at the workplace at the quality level
specified by the organization. The assessment of professional
competencies is the process of collecting the information necessary to
demonstrate the requirements of the organization’s standards. Measuring
the results of competency-based learning programs requires first the
assessment of current performance at the time the project is started,
followed by multiple assessments after the training is finished and the
employee has had the opportunity to demonstrate how their performance
has changed.

By building measurements into the project from the start, the program

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can be designed to facilitate the collection of performance data, and it


can be easier to demonstrate ROI.

The evaluation of competency-based training is straightforward but


requires commitment and collaboration from multiple teams, including
leadership and operations.

1. Review The Competency Model

Ensure the competency-based program aligns with all strategic business


objectives. Competencies should be clearly defined and measurable.
Many companies have an overabundance of "common sense"
competencies in their competency models. For example, while
"relationship building" is an important skill, its contribution to the bottom
line is not measurable, and this skill should therefore not be the focus of a
competency-based learning program.

2. Must-Have Competencies

Choose them from the competency model and focus the program on
those. Attempting to cover too many competencies with one program is
not effective.

3. Define The Metrics You Will Use To Measure ROI

The learning program must always be designed with the end goal in
mind. Examples of the most common metrics used to evaluate
competency-based training include:

Change in performance ratings over time


Promotion percentage
Employee turnover/retention rates (job-specific)
Productivity rate trends over time
Error trends over time (better performance will be reflected in lower

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error rates)
Customer satisfaction trends over time
Overall revenue increase with specific increases in sales (used for
sales teams)

4. Design The Assessment

Design and implement the assessment approach that will give you the
best understanding of the program’s effectiveness. For competency-
based learning, it’s critical that the evaluation approaches include all of
the following:

Objectively scored assessments


The most common type of evaluation, where a test including
multiple-choice, open-ended, and matching questions is
administered at the end of a learning module.
Performance-based assessments
These are time-consuming, but also more efficient in demonstrating
ROI. They include essays or reports, project work (individual or
group), and simulated environments.
Real-world observations
Conducted at the workplace, usually by the supervisor and manager,
these types of assessments are spaced out over time after the
learner has completed the training.

5. Conduct A Pre- And Post-Assessment

Before the training program begins, you should have a baseline to


measure against. Along the same lines as the post-assessment, and
using the same metrics, conduct a pre-assessment of your learners’
competencies. After the training is concluded, the post-assessment is
conducted with the components listed above.

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6. Gather 360-Degree Feedback

This takes the pre- and post-assessments a step further. This type of
feedback provides insight from supervisors and peers and helps
determine what behaviors have changed and how new behaviors are
being applied to impact the company’s bottom line.

7. Measure ROI And Adjust The Program To Boost It

While the formula for ROI is well-known, performing the actual calculation
involves several steps. Applying the following tips will enhance the
reliability of your calculated ROI:

Isolate the effects of the training


The impact of external factors can be misleading and should be
discarded when calculating the ROI of competency-based learning.
For example, if you use employee retention as a metric, the
unemployment rate in certain regions can affect the measurable
effects of training.
Gauge training effectiveness and job impacts
This critical measure directly calculates the percent of performance
improvement resulting from the training.
Measure business results
Post-training, did you see increased sales? If in manufacturing,
increased productivity? Did your top negotiators close an
appreciably greater number of contracts?
Calculate the cost
Training-related costs are not only the cost of program development
but also the cost of seat time, lost productivity, etc.
Calculate the ROI
Don’t be discouraged by low ROI results, just keep striving to
improve through good design and strategy.

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While consistently demonstrating the ROI of learning can be a


challenging exercise, we believe that it’s imperative to show a clear and
strong relationship between competencies and organizational
profitability. Contrary to popular belief, the appropriate level of
assessment is generally achievable within the allotted development
budget. As Learning and Development professionals, our job is to build in
the accountability of measuring success, reporting the results, and
proactively adjusting learning programs as necessary. Download the
eBook Competency-Based Learning: Increase Employee Skills
Development Through Competency-Based Learning to discover more
about this highly strategic approach to employee skills development.

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