Call us on 1300 768 550
In over three-fifths of organisations, L&D is incorporated into the HR department; other companies split L&D training between HR and another area of the business, or separate them completely. L&D has been connected to business strategy, but lack of clarity among leaders and executives is getting in the way of effective in-house programs (CIPD 2015). Unfortunately, L&D is often one of the first budget items to be cut.
Sue Blight, Head of Learning and Development at US company, Dairy Crest, asserts that financial gains can easily be recorded, giving teams and managers confidence in budget decisions and improved skills. While measurements and successes will vary according to organisation, there are some basic considerations to help measure program efficacy.
According to researchers Bennington and Laffoley (2012), ROI can extend beyond the financials. L&D programs should not just consider money spent but also business results, job performance and quality of training. By knowing how the L&D team is performing, budget decisions can be justified at any time --- not just at the end of a program. Numbers should be clearly stated, not ballooned or emphasised, and anecdotes can be used to help paint a complete picture of L&D training. Though quality of L&D experiences are important, data should measure the effect of learning and focus on what executives consider success. Participants aren’t the only ones who should be polled --- supervisors, peers, even senior executives can offer a well-rounded perspective on the value of L&D initiatives.
If budget remains a consideration, MCI founder and educational director Dr Denise Meyerson encourages companies to expand their vision and get creative. With online workshops and educational apps, companies can supplement employee training and conserve budget typically spent on travel, accommodation and day-long programs. Meyerson recommends that teams follow up after each L&D program to ensure lessons are implemented, and employees convert theory into practice.
If you’re unsure how to measure your L&D team’s impact, consider the following:
1. How do you rate and measure employee performance?
2. What kind of feedback is provided to your L&D department?
3. What are the best parts of your training program? The worst? How can you make it better?
4. How can your HR and L&D team work together after the program is completed?
Learn More about cost saving Digital L&D Platforms:
Bennington, Keri and Tony Laffoley (2012). Measuring the ROI of Learning and Development, UNC Executive Development, Kenan-Flagler Business School.
CIPD (2015). Annual Survey Report, Learning and Development. Access online: https://www.cipd.co.uk/binaries/learning-development_2015.pdf
Palmer, S. (2010). Making the business case for learning and development: 5 steps for success. UNC Kenan-Flagler Business School. Access online: http://www.kenan-flagler.unc.edu/executive-development/custom-programs/~/media/5D2A2B1BFB794F8AAA023BD33D68844F.ashx