Measure ROI of Employee Training and Development
- July 19, 2017
- Posted by: Penta Consultant
- Category: Training and Development,
Investing on Public and In-Company Training for Employees in 2017
Top companies across all industries throughout the Middle East know that investing in people really pays off. No matter what the industry, the company is run by people, and companies that invest in its people using an in-house training provider, customized training course provider, or other types of employee development programs are reaping the benefit.
There are many public training courses in Dubai and other areas of the Middle East to choose from. Before employing a customized training course provider, however, the company needs to have a strategy towards their ROI for whatever employee training options they choose. Here, we will look at how companies can maximize their ROI for training initiatives by measuring ROI.
Select Performance Indicators
To effectively measure the ROI for employee training and development, companies need to select specific, quantifiable standards for numerical comparison. Specific performance indicators will depend on the industry. Companies need to focus on the results they want to gain from the customized training course provider and their priority areas for improvement.
Some examples of performance indicators are units produced, units sold, accounts opened, time on project completion, processing time and overtime. To most effectively measure ROI, companies should select performance indicators and tie them into the type of training to implement. For example, product knowledge and sales training will help to increase sales while customer service training will raise customer satisfaction.
Isolate the Effects of Training
To be able to measure the ROI, you need to be able to compare the performance of a group of employees that received the training versus a group that has not received training. You can do this by using a control group. Select the control group, then implement the training using an in-house training provider or development program. After the program is complete, measure the performance indicator of the control group and compare these results with the employees that have not received any training.
Another method is to use a trend line. The trend line graphs the chosen performance indicator through time. For example, a trend line shows the number of sales for a company. All employees of the company receive sales training on a certain date, and the number of sales spikes. The trend line shows the steady progression of the number of sales for the company, which is lower than the actual number of sales following the sales training.
Depending on the performance indicator, companies can easily convert the measured results to monetary value. Companies should also consider the intangible effects of employee training and development, such as higher morale and employee confidence.
Employee training and development is an excellent investment. To get the highest ROI, companies should focus on the results they seek and accordingly select the proper customized training course in Dubai or in the Middle East.
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