Introduction Training & Development & its Metrics

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How do you enhance Human Capital?
 What is What is
Training ? Development ?

Planned effort by a company to Expansion of individual’s

facilitate employee’s learning of capacity to be effective in new
job-related competencies roles in the future

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Why should organizations invest in employee
training and development?

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How do you approach L&D activities in your organizations?

Reflection Questions
What do people do in organizations?

Where is the time for training?

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L&D perceived as HR’s checklist item !!!

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 How to make Training & Development opportunities to
be more acceptable to employees and their managers?

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Managers as Customers

• Allocate money
• Free up employees
• Encourage subordinates
• Customized solutions

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Evaluate training effectiveness
• Customer service
• Employee engagement
• Employee retention
• Productivity
• Quality
• No. of defects
• No. of patents

Business Impact, Employee Satisfaction, Stakeholder

satisfaction, Solution effectiveness
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Long term Performance Support
• Part of annual development plan
• Performance appraisal
• Skill based pay system
• Culture of continuous learning
• Maintain open communication
• Mutual respect & trust
• Take feedback
• Encourage individual responsibility

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How to decide the focus area for Learning
and Development?
 3. Employee Training

Determining Training Needs

 Areas Of training

• Company policies & procedures

• Skill based training
• Human relations training
• Problem solving training
• Managerial & supervisory training
 4. Methods of Employee Training
• On-the-job training methods
• Job Rotation
• Understudy Assignments
• Off-the-job training methods
• Classroom lectures
• Films and videos
• Simulation exercises
• Vestibule training
NEEDS ANALYSIS FRAMEWORK

Organizational
Analysis

Task Person
Analysis Analysis

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 Organizational Analysis

What are the factors we need to consider while doing

Organizational Analysis?

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 Organizational Analysis
Company’s strategic direction Resources available for training

Support by managers and employees

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 Person Analysis

What personal characteristics influence learning?

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 Person Characteristics
• Basic Skills
• Cognitive Ability
• Verbal comprehension
• Quantitative ability
• Reasoning ability
• Self Efficacy
• Awareness of Training Needs &
Career goals
• Age and Generation

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 Task Analysis

What do you think is Task Analysis?

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 Task Analysis
• Break down of job into tasks to be performed. Take example of a salesman

Task Description Importance Frequency Difficulty

How critical is the How often do Does it require
task for effective you perform the extensive experience
performance task or training
1 Understand product
attributes
2 Communication with
customer
3 Punch daily sales in
the system
4 Credit collection from
the market 26
Knowledge, Skills, Ability, Others (KSAOs)

Knowledge Ability
Understanding of concepts Innate traits or talents

KSAOs

Skill Others
Proficiencies developed Conditions, equipment use,
through training/experience deadlines, safety

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Why is it important to evaluate and report
on the effectiveness of training?

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• The budget requests are granted.
• The quality of the work improves.
• Senior management listens to the advice.
• Teams are given more control.

You become Accepted, Trusted, Respected, and Needed

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 More specifically

• To justify the existence and budget of

the training department
• To decide whether to continue or
discontinue training programs
• To gain information on how to improve
future training programs

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How do you judge the effectiveness of training?
Kirkpatrick's Four Level Evaluation Model

Level 1
Reaction

Level 2
Learning

Level 3
Behavior

Level 4
Results

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 Level 1: Reaction

• To what degree participants react

favorably to the learning event
• Immediately after the training
• Through a questionnaire
• Identifying trainee’s satisfaction with
• Instructor
• Training material
• Training administration

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 Sample Reaction Measure
• The facilities and equipment made it easy to learn
• The training met all the stated objectives
• The material I received during the training was useful
• The instructor was knowledgeable about the training content
• The instructor was well prepared
• I learnt a lot from this training
• What I learnt from this training is useful to my job
• Overall, I am satisfied with the training

Strongly Disagree Disagree Neither Agree Strongly Agree

1 2 3 4 5 34
 Level 2: Learning
• To what degree participants acquire the intended knowledge, skills and
attitudes based on their participation in the learning event
• Degree to which participants are familiar with the facts, techniques
• Before and After
• Tests and Quizzes
• Demonstration
• Role play

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 Sample Questions for Data entry clerks
• What are the different kinds of errors?
• Why do different errors occur?
• How do you resolve an error in minimum time?
• How do you prevent a particular kind of error from occurring?

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 Level 3: Behavior
• To what degree participants apply what they learned during training
when they are back on the job
• Doing things differently at work

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Whom will the trainer ask?

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 Stakeholders

• Participants: Measure their skills, knowledge, attitudes and application

of these.
• Participants’ managers: Obtain data or perceptions on what has
changed and what gaps still exist.
• Have the participants gotten better at their jobs? How?
• Do they show a better or different attitude?
• Do they work more efficiently?
• Participants’ co-workers: Obtain data or perceptions on employee
performance, teamwork, attitude, etc.

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 Stakeholders (contd.)
• Participants’ supervisees:
• Does the participant show a better attitude?
• Does the participant work more efficiently?
• Is he or she a better manager or communicator?
• Clients/Customers:
• Are they satisfied with service, products or the availability of projects?
• Other:
• How many items are produced and how long it takes to produce them?
• Were they produced on time?
• Were they produced correctly?

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 Level 4: Results
• To what degree targeted outcomes occur, as a result of learning
event(s) and subsequent reinforcement
• Determining the training’s payoff to the organization

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 Training and Development
• Training and development department is popularly known as learning and
development department. Generally, the function of training and
development is dependent on the input or the need of the user department
(different departments) in the organization and the organizational training
need.
• A simple workflow of the training department is shown in Figure. The training
department receives the input of training needs from three sources:
1. Organizational needs based on the vision and mission
2. Departmental needs
3. Individual needs (Cooke 1979).
Use of Analytics in Training and Development
• Based on the Kirkpatrick model of ROI evaluation, the training managers are suggested to measure and use
analytics at all the four levels of trainings being implemented in the organization. Training manager can analyze
the percentage of trainings completed in each of the above four stages of training evaluation.

• Similarly, the percentages of training for different levels should be monitored. If the training is not crossing
levels 1 and 2, it must be stopped immediately.
• Using the Kirkpatrick’s assessment model, we can calculate the ROI of a technical training program.
• Given the importance of ROI to business value, let us understand it in detail. The formula to calculate ROI is
 ROI of Behavioral Training
• ROI can be easily calculated for technical training. However, return on
behavioral training is difficult to calculate, and as a result spending on
behavioral trainings is often difficult to justify.
• They proposed that behavioral trainings have two benefits:
1. performance improvement
2. improvement in overall engagement.
• A learning manager or HR analyst should monitor various metrics to
make learning and development more effective.
 Calculating ROI on a training
• There are 40 data entry clerks in a bank. Their monthly pay is Rs.
30,000. They work on an average 25 days a month, 6 hours in a day.
A clerk spends 12 mins daily correcting errors. The bank organizes a
training for the data entry clerks. The external instructor charges Rs.
20,000 for the training. The classroom space and audio-visual
equipment is rented out which costs the organization additional Rs.
10,000. The trainees will have to attend the training for one complete
day.
• After the training, the clerks spent 50% less time correcting errors.
Calculate the ROI on training.

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 Calculations

Cost of Training Savings from Training

6 min
External Trainer Fees 20,000 Data entry time saved Or 0.1 hr(12*50/100)

Audio Visual Equipment Rent 10,000 Hourly pay 200(30000/25/6)

Downtime 48,000(30000/25*40) Savings per employee 20(200*0.1)
Total Cost 78,000 Total Savings per day 800(20*40)
Monthly Savings 20,000(800*25)
Total Annual Savings 2,40,000(20000*12)

ROI 2.08(240000-78000)/78000
Period of getting back the
investment 3.90(78000/20000)
< 4 months
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 What is the data required for Results?

• Hard Data: Increased production,

reduced costs, reduced accidents,
reduced downtime, improved
product quality, improved customer
satisfaction
• Benefits & Soft Skills: Leadership,
teamwork, attitude and a happier
work atmosphere are often the
precursor to achieving - reduced
turnover, greater productivity and
better teamwork. (over time)

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 ROE – Return of Engagement
Benefit of Behavioral training program
• More involved
• Giving more suggestions
• Low absenteeism
• More stress free
• Less accidents
• Better team player
• Less conflicts

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 Macro-level Training Parameters
Measurement Description Formula
Parameter
Time No of training hours per Total Training hours/Total
employee per year Employees
Quantity Percentage of employees trained Total Trained/Total Employees
Need Type Percentage of employees Total employees needing particular
needing particular training training/Total Employees

Diversity No of different training programs -

offered
Cost Return on Investment (Total Benefit – Total Cost)/Total
Cost
Trainer Type Internal vs External Trainer Internal/Total Trainers 53
 Top KPIs for L&D
• Budget vs. Spent
• Learner Satisfaction Score
• No. of training hours per employee
• No. of programs delivered
• Employee engagement
• No show (%) for formal training
• No. of new programs launched
• New hire percentage after 12 months
• % of employees with right skill level
• Time to competence

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What are the problems with measurement of
outcomes?

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Is the measurement commensurate with the training?

Measured Trained

Contamination Relevance Deficiency

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 The Resulting ROI
The weighting represents
Weighting (W) Score (S) WxS the importance of each
measurement, and the score
Engagement 10% 50 5
represents the success of
each measurement.
Feedback 5% 90 4.5
These must then be
Assssment 25% 82 20.5 multiplied, and the product
Application 25% 76 19
summed together for a total
out of 100
Business imact 35% 73 25.55

Total 100 % 74.55

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 Threats to Validity
• Internal Validity – That the results are indeed because of training
• External Validity – Results are applicable to other groups & situations

• Pretest – Posttest
• Use comparison group

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 Time Series Reversal

PERCENTAGE OF INCIDENTS OF SAFETY

100
90
80
70
60
50
40
30
20
10
0
0 5 10 15 20 25 30
Percentage of incidents of safety

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 Upcoming trends

How can Big Data be used for tracking learning in organizations?

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 Usage of Big Data for Training Effectiveness @ TELUS

• Collects data from Different tracking systems

• Individual, Department, Business

• Accessing – Clicking, Opening, Attending

• Usage – Viewing, Staying, Reading, Participating
• Knowledge acquisition – Grade
• Evaluation – Learner assessment
• Return – Performance Impact

• Dashboard displays Learning Investments, Assessment

Results and Analytics by team, region, division
• Know your ethical boundaries

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If you do not know how to ask the
right question you discover nothing.
W. Edward Deming

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 Exercise
• Construct a Training and Development Metrics for your organizations
• Identify needs
• And how training fits in with the needs
• How will you evaluate the training for your respective organizations
• Explain the entire process
 Not everything that
can be counted counts
and not everything that
counts can be counted

Albert Einstein
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