| For decades companies have been struggling with the | | | | For many development of measurement and |
| real costs,benefits and return-on-investment of training | | | | evaluation tools sounds like additional costs and |
| costs. Withincreasing online learning opportunities, | | | | expense to the organization. Companies who allocate |
| organizations are finding their focus shifting from | | | | a small, but fixed percentage of the training budget to |
| providing costly onsite training programs to the use of | | | | this purpose will find themselves able to effectively |
| new tools and technology now available. Companies | | | | measure the effectiveness for their overall investment |
| need to understand and apply the business analytics in | | | | in training. One study found that organizations who |
| order to fully appreciate the effectiveness and impact | | | | adopt this model, and who spend US $2-10 per |
| that e-learning and training offers. | | | | employee on learning analytics reported noticeable |
| Companies invest large amounts of money, resources | | | | improvements in the measurability and return on |
| and time intraining. According to a 2002 ASTD State | | | | investment. |
| of the Industry Reportwhere over 375 major | | | | Companies will need to justify the costs associated |
| corporations were surveyed, companies | | | | with measuring learning by identifying the business |
| spentbetween one (1) and three (3) percent of their | | | | impact and risk of not training its employees. This could |
| total payroll ontraining. This translated to a per-person | | | | be quantified by fines, or profit loss as a result of being |
| basis of more than | | | | out of compliance with laws or standards. Often times |
| US $700 per employee per year. In cutting-edge | | | | this can result in fines levied against the company or |
| companies thatsignificantly increases to US $1400 or | | | | even lawsuits or other forms of profit loss. |
| more per person per year. | | | | In healthcare, for example, lack of compliance with |
| If training expenses are viewed as a percentage of | | | | correctlycollecting, coding and reporting cancer |
| the company'sprofits, then the training budget could | | | | incidence could have far-reaching impact on budget |
| represent as much as | | | | dollars spent not only in the training and operational |
| 5 - 20% of the total profit margin. With increasing | | | | costs associated with the Cancer Registry |
| costsassociated with travel and lodging, as well as | | | | department, but could also negate the costs |
| increasing costsand expenses to register and attend | | | | associated with cancer program development and |
| meetings or to develop in-house training programs, | | | | community outreach programs. Although program |
| training budget costs are undboutedly going to | | | | development and outreach programs have the ability |
| increase, which only underscores the need to justify its | | | | to compete with the consumer's dollars, all this could |
| cost. | | | | be for naught if the required reporting is not done |
| In order to effectively measure training programs, | | | | accurately and in compliance with the State or |
| companiesare faced with three critical issues: | | | | accreditation program standards. Training programs for |
| efficiency, effectiveness, and compliance. Every major | | | | the Cancer Registry can ensure that the data |
| decision made regarding training falls into one of these | | | | management processes are appropriately managed. |
| three areas. Fortunately, each of these three areas | | | | So, in summary, companies should be focusing on the |
| can be benchmarked and measured. | | | | developmentand measurement of their learning |
| The ASTD 2002 study reported that only one-third of | | | | programs. The investment inlearning analytics will |
| companiesmeasured the effectiveness of learning and | | | | outweigh the risks of inadequate training. Success for |
| that 12% or less attempted to measure job and | | | | any organization will directly depend on their |
| business impact of their training programs. Why? | | | | employee's understanding of their products, services, |
| Interestingly enough the top reason why companies fail | | | | operations and policies. Employees must be thoroughly |
| to measure training is that they lack the experience, | | | | trained in compliance, standards, confidentiality, |
| tools and infrastructure to do so. | | | | non-disclosure and other legally sensitive areas of the |
| It is impossible to improve or effectively optimize the | | | | company. And, companies must be able to track and |
| trainingprogram if it is not benchmarked or measured. | | | | measure this using effective learning analytics. |
| Training should be measured and evaluated just as | | | | PUBLISHING RIGHTS: |
| companies measure productivity, profit or quality. There | | | | You have permission to publish this article electronically, |
| have been many scorecards, dashboards, algorithms | | | | in print, in your ebook or on your website, free of |
| or metrics developed for this purpose. | | | | charge, as long as the author's information and web |
| If one considers the total training investment per | | | | link are included at the bottom of the article and the |
| person in thecompany (see above), the question is | | | | article is not changed, modified or altered in any way. |
| how much should they spendon measurement and | | | | The web link should be active when the article is |
| evaluation? One, five or ten percent? Looking back at | | | | reprinted on a web site or in an email. The author |
| the ASTD 2002 study of best practices, we find that | | | | would appreciate an email indicating you wish to |
| most companies spend 40-50% of their total training | | | | postthis article to a website, and the link to where it is |
| dollars on content development, 8-10% on | | | | posted. |
| infrastructure and the remaining resources on salaries | | | | Copyright 2005, M. A. Webb. |
| and facilities costs. | | | | |