Which of the following is the best way to evaluate a training program
Learning & development Show
6 MIN READ Companies invest huge amounts of money in employee training and development. These days, it is essential to understand and measure the impact of all activities so they can be tweaked if necessary, to guarantee a profitable investment. But how should companies evaluate training plans to find out if they have been effective? Although most company training programs already incorporate an evaluation step, here we’ll explain the key considerations and the evaluation methods available. The importance of calculating the ROI of trainingROI is the metric used to find out how much a company earns relative to the investment made. That is, how many pounds have been generated from each pound invested. In simple terms, the ROI tells us if training has been profitable or not. Why should you measure the ROI of training? Well, there are a number of reasons:
There is a simple formula to measure the ROI of employee training: 👍👍(Benefit obtained - investment) / investment x 100 Do companies evaluate employee training?According to Nolan Hout, ineffective training plans can cost up to $13 million per year for every 1000 employees. However, the ones that invest well can obtain profits 24% higher than those who don’t. So, bearing this in mind, evaluating employee training, and measuring the subsequent impact on the company, is an indispensable step that should not be neglected. And most companies are aware of this. As Peter Drucker says: You can’t improve what you don’t measure. Many companies use performance reviews to measure the direct effect of training on their employees’ performance and skills. This is an objective way to find out if the course has delivered the expected results. What methods are there for evaluating training plans?How do you evaluate an employee training plan? There are a multitude of suggested methods for evaluating company training. However, we’ve chosen the four most common and useful models to discuss here. 1. The Kirkpatrick evaluation modelThis model was created by Professor Donald Kirkpatrick with the aim of measuring the impact of training programs. It comprises four levels: reaction, learning, behaviour and results. Let’s look at each level in turn:
2. The Phillips ROI modelThis model is exactly the same as the previous one, with the addition of a fifth step which evaluates the return on investment (ROI). Phillips’ model answers the growing need for accountability in terms of monetary investment. He argues: “Most training and development budgets have continued to grow year after year. As expenditures grow, accountability becomes a more critical issue. A growing budget creates a larger target for internal critics, often prompting the development of an ROI Methodology. The function, department, or process showing the most value will likely receive the largest budget increase.” His model therefore measures the difference between the training costs and training results. When the results are equal to or greater than the investment, the ROI is positive. This is a good result, which signposts the way forward. However, a negative result means that something is not right. 3. Kaufman’s five levels of evaluationKaufman also uses the Kirkpatrick model as a reference and makes it his own. He proposes the following:
4. The Anderson Evaluation MethodThe Anderson model encourages companies to focus training evaluations on the program’s objectives, or even the organisation’s strategic goals. We can only assess the true success of a program if the objectives are aligned. This is a two-step process:
Finally, we can calculate the ROI and decide if it is necessary to make improvements.
How do you evaluate the training programs?Evaluate how the training has influenced the learner's performance and delivery at work by using a combination of these methods:. Self-assessment questionnaires.. Informal feedback from peers and managers.. Focus groups.. On-the-job observation.. Actual job performance key performance indicators (KPIs). What are the 4 types of training evaluation?The four levels are:. Reaction.. Learning.. Behavior.. Results.. |