It is generally accepted that investing in employee training is fundamentally a good idea. But is this always the case? And should training budgets be prioritized over other investments?
To come straight to the point: investing in training is fundamentally the right thing to do. However, if the expected benefits are lower than anticipated, this is often because the goals were not clearly or precisely defined at the outset.
Defining objectives: The essential basis for a meaningful evaluation
The objectives of training should be clearly defined in the training plan. They form the basis for the key performance indicators (KPIs) used to check whether the desired results have been achieved.
Objectives aim to create added value for the company, even if this is not necessarily of a financial nature. This includes, for example, meeting the training needs of employees, the targeted development of skills, or the optimization of internal processes.
Typical objectives of training programs are:
the acquisition of new skills,
increasing the performance of employees,
improving the quality of products or services.
Effectiveness of training: evaluation models according to Kirkpatrick and Phillips
The Donald Kirkpatrick model
This established model for evaluating training was developed to analyze its effectiveness systematically and as objectively as possible. The focus is on the knowledge acquired during training and its transfer into professional practice.
Donald Kirkpatrick's model is based on four levels of evaluation:
Reaction: participant satisfaction with the training program
Learning: extent of knowledge acquired during the training program
Behavior: changes in everyday work, i.e., how new knowledge and skills are actually applied
Results: impact of the training program on company performance and its alignment with defined goals
Jack Phillips' ROI model
Jack Phillips builds on Donald Kirkpatrick's model and adds a fifth level of evaluation: return on investment (ROI). This compares the benefits achieved through training with the costs incurred.
Based on the models developed by Kirkpatrick and Phillips, five key indicators can be identified to evaluate the effectiveness of training.
Five key performance indicators for measuring the effectiveness of training
The learning curve
A steep learning curve indicates that employees quickly absorb new content and can apply it in their professional practice in a timely manner. The time required to acquire the desired skills is therefore a valuable indicator of the effectiveness of training.
To measure this KPI, you can record the average and individual duration of the training and compare the performance of participants before and after the training.
Participant satisfaction
Training courses are designed to impart knowledge and skills. In addition, it makes sense to also consider the participants' perception of the training, especially with regard to its usefulness in their everyday work.
Surveys conducted after completion of the training program are a suitable way to measure satisfaction. In addition, quantitative indicators such as participation rate, completion rate, or the results of a final test can be used.
Transfer of knowledge to skills
The goal of any training program is to translate newly acquired knowledge into concrete, applicable skills.
A comparison of employee performance before and after the training program provides initial indications. Equally meaningful is the actual application of the new skills in everyday work, which also allows conclusions to be drawn about motivation and commitment.
Impact on company performance
Many training courses aim to increase the performance of employees and companies. This can manifest itself in higher efficiency, increased productivity, better sales figures, or higher quality products and services, among other things.
To evaluate these effects, it is advisable to compare relevant performance indicators before and after the training.
Return on investment
The return on investment follows the classic ROI formula and shows whether the economic benefits of training exceed the associated costs.
In practice, however, an objective calculation is challenging, especially when training is not directly linked to quantifiable business results.
For a realistic assessment of ROI, it therefore makes sense to also consider the costs incurred due to a lack of training. These include knowledge gaps, reduced efficiency, or quality losses. These can be compared with the results after training to reveal the actual added value.
