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How do you Measure the Effectiveness of Corporate Training?

We have been hearing about corporate training being an essential part of a job, and every employee should be exposed to it. But what does corporate training mean? And how does it work? Well, Corporate Training or Corporate Education is a system of activities to educate employees. Corporate training is beneficial to both employer and employee.

As employees are exposed to corporate training, they are given a chance to obtain and hone their skills and knowledge and progress personally and professionally. While the employees are getting the education they need to obtain and gain more skills, employers will have more skilled and well-trained employees, which will help the company grow and establish its brand even more.

However, even after the training, some employees show no significant progress regarding their skill set. Different factors can cause your corporate training program to fail, such as irrelevant training content and materials, failing to encourage the employees to participate in the training, and not being able to measure the success of the activity. These are only some reasons that cause corporate training programs to fail and become ineffective. Of course, if you are to launch a corporate training program, you want it to be successful and help your employees to become the best version of themselves. The question that might be on the top of your mind as you read this is, how do you measure the effectiveness of corporate training? You're in luck! Because in this article, we will discuss how to efficiently measure the effectiveness of corporate activities that you will be conducting in your office.

Corporate training effectiveness measures the impact of the training on the employee's skills, knowledge, performance, and the company's return on investment. Before a training starts, objectives and goals should be identified first, like what you want your employees to attain and develop. These objectives will keep you in touch with the reasons behind your corporate training program and help you measure the employees' progress. For example, you would like to launch a training program that will boost the employees' productivity, sales, and overall mood inside their workspaces. Before we proceed with how you're going to measure the effectiveness of the corporate training, let's discuss why you should keep track of the training metrics.

LinkedIn Learning 2020 reported that 49% of L&D professionals are having a hard time looking for managers to prioritize learning for their teams. Tracking performance indicators is crucial for professionals' education and development since everything in business requires a return on investment. Otherwise, the company will be at risk. The first step in setting training metrics is establishing your goals and objectives. You might find yourself working with the managers and leaders in your organization to discuss the goals you would like to achieve in your training and development team. It is crucial to ensure that the goals you set support the overall company strategy; for example, if the company has set a goal to hire many people, then you should investigate streamlining your onboarding processes. Keep in mind that when setting goals, you must consider the SMART or Specific, Measurable, Achievable, Relevant, and Time-based methodology.

Now, let's unravel the HR training metrics and formulas that you'll find handy when measuring the effectiveness of your corporate training.

Course Completion Rate

The formula used to know the course completion rate is Number of Completions ÷ Number of Employees Participating X 100. The course completion rate will help you identify how many employees have completed the corporate training program. Whether it’s measured by modules, by lessons, or by programs, it is vital to know the number of employees that started and successfully finished the training assigned to them.

Assessment Pass Rate

The assessment pass rate tells you how well the employees retain and recall their training enough to pass the assessment. This metric only works if you have assessments in your corporate training that apply to the content being taught. The formula used for this is Number of Employees Passed ÷ Number of Learners X 100.

Employee Retention Rate

Measuring the employee retention rate will unravel the percentage of employees still with your company after a certain period. The most used is 90 days. Proper orientation and onboarding can have a considerable effect on your retention rate. To know your employee retention rate, you can use the Number of Employees Still Employed ÷ Number of Employees at The Start Of Measurement Period X 100 formula.

Training Experience Satisfaction

Surveys can be used to understand how your employees felt about the training experience, whether it’s about the instructor, modality, tools, or content. You can collect this information through surveys where the employee can rate the training aspects from 1 (Strongly Disagree) to 5 (Strongly Agree), then find the final result by using the Sum of All the Ratings / Number of Answers formula.

Training Cost Per Employee

The training cost per employee will determine the investment in your training program. The number can be used in other metric formulas to assess the effectiveness of your training program resources. Your training costs can include subject matter experts, instructors, materials, employee salary while being trained, etc. Keep in mind that corporate training is an investment since it will produce a well-rounded employee for the company. The training cost per employee can be measured through the Total Training Costs/Number of Trainees formula.

Training Return on Investment

Your training return on investment (ROI) will tell you how the program benefits the company in an actual dollar amount. It may be difficult to track the change in profit related to training – SMART goals and specific topic training will be easier to follow. You'll unravel the training return on investment using the Change in Profits Related to Training/Cost of Training formula.

Employee Return on Investment

Corporate training is a form of investment. Say that you invest in your employees. In return, it will boost their performance and elevate your business. By calculating employee return on investment (ROI), you can determine the financial results of your investment in your workforce. You can use the (Total Revenue / Total Number of Employees) / (Total Employee Costs / Total Number of Employees) formula to determine your employee ROI.

Use these formulas to determine the effectiveness of your corporate training. Keep in mind that this training is a form of investment that will significantly affect the company and benefit the employees. Having a set of well-rounded employees will not only boost the company’s sales but will also increase the productivity and work morale of the employees, keeping them happy as they work with you.

Interested to have a discussion with our consultants on measuring training ROI? Reach out to our consultant at to arrange for a discussion.



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