Tips for Measuring the Impact Learning Has on a Business

By Nick Hester

Once learning plans have been instituted into a company’s curriculum, it is now time to start figuring out the best ways to measure the impact of these plans in relation to the company and its projected growth and development outlook. Although there isn’t one particular formula to follow, there are some tips that one can use in order to help them find that true measure of impact that all companies are looking for.

Even though there isn’t one set measurement method, it is important that a company choose at least one measurement that they feel will best suit their particular businesses needs. Companies that do not partake in measuring learning impacts will not be able to fully understand the impact that learning can have on their business: either they don’t understand how to measure the impact, don’t have the required resources, or it is not seen as a high-priority issue.

Since it is quite difficult to calculate the impact of learning because it is a qualitative measure, the top 3 techniques that are presently being selected for measuring the impact that learning has on a business include Return On Investment, Trend-Line Analysis, and Control Groups.

Return on Investment. Although soft skills are not easy to measure, this is still the most commonly used method for measuring business impacts.

[(monetary benefits – cost of the training) / cost of the training] x 100

ROI (%) = (benefits – costs) x 100

————————

costs

 

Trend-Line Analysis. A technique commonly used to view trends over periods of time.

Control Groups. First, there must be an initial program set in place in order to provide a starting off point in order to compare and measure this group from the very beginning to the very end.

Although measuring how human capital can bring profit to a company is quite the complex procedure, it can be accomplished. The majority of human resource professionals use the following six steps for measuring the correlation between people and profit.

 

Measuring Steps

  1. Create some fundamental models that are based on the company’s strategic plan
  2. Gather all the data together and systematize it according to skill set
  3. Turn the data into credible information, connecting it to the company’s vision
  4. Frequently go over the data in order to bring it up to date or improve upon it
  5. Implement a plan based on the above information
  6. Initiate a plan to evaluate any and all results

 

Tips for Measuring the Impact Learning Has on a Business

Since there are a few ways available to measure the impact of learning, the following are some tips to help you with the process. Also, it’s important to understand that all skills are important and have a particular place in the business environment where they will prove to be most beneficial.

1. Measurements should be taken by the employee, the team, and the business. This way there are various measuring levels that when combined come together to create a complete and overall view of a particular measurement.

2. Soft skills are being measured, there is a need to connect any before and after learning impacts to the company’s finances. Essentially, it’s a good idea to connect all training to the company’s core business needs before measuring the return on investment.

3. Recognise key performance indicators in order to have something in place to measure the training against: already have in place expected results in order to make sure the benefits expected will justify the cost.

Turn the data into credible information, connecting it to the company’s vision

  • Frequently go over the data in order to bring it up to date or improve upon it
  • Implement a plan based on the above information
  • Initiate a plan to evaluate any and all results

 

About

We are a provider of professional business training courses; designed for companies who want to train their staff as well as individuals who are seeking their own personal development. We offer essential courses in time management, negotiation skills, leadership, stress management, effective communication, marketing and much more! Browse over 100 courses and qualifications http://www.taylor-mason.co.uk/

 

Categories: Managing & Leading

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