Adopting the current technology is a risky investment when we are not sure of what learning and development metrics are and how they’ll contribute to the end goal which is the improvement of workforce capacities. As for measuring the impact of eLearning, you need to track training effectiveness but don’t know the right metrics, or the theory/ reason behind these metrics. To address the elephant in the room, it’s important to get insight from training KPIs for better improvement because training influences business goals.
The Importance of L&D KPIs in Employee Training and Development
To be honest, F.Learning’s clients often struggle with measuring employee training metrics, as a lack of understanding of key performance indicators (KPIs) hinders their ability to gauge the success of training programs. Relying solely on verbal feedback can be misleading, as employees may not provide honest assessments. Utilizing training KPIs is essential to determine if employees meet current and future job requirements and to assess the return on investment (ROI) of training initiatives.
To effectively measure skill-building, many companies are turning to Learning Management Systems (LMS) to create content and track employee progress from their first lesson. This technology eliminates the need for third-party tracking, providing valuable reporting and analytics through integrated dashboards. By leveraging an LMS, organizations can gain insights into training effectiveness and make data-driven decisions.
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11 must-have Learning and Development Metrics for Learning Analytics
| KPI Type | No. | Metrics | Description |
| LMS-relating training KPIs | 1 | Activity Pass/Fail Rate | Tracks employee performance across months to identify learning issues and course difficulty. |
| 2 | Average Test Score | Measures the effect of training program modifications by monitoring changes in test scores. | |
| 3 | Training Completion Percentage Rate | Evaluates employee engagement and compliance through the percentage of completed courses. | |
| 4 | Training dropout rate | Analyzes reasons for course dropouts to improve content or instruction. | |
| 5 | Course Attendance Rate | Tracks employee attendance in optional courses to assess course popularity and engagement. | |
| 6 | Average Time to Completion | Monitors course completion time to calculate training ROI by correlating with employee wages. | |
| Business-driving training KPIs | 7 | Employee Engagement | Measures the quality of training based on employee retention and turnover rates. |
| 8 | Knowledge And Skill Retention | Evaluate how much employees retain from training and the overall effectiveness of the training. | |
| 9 | Transfer Of Training | Measures the application of learned skills to the job, assessing training effectiveness. | |
| 10 | Impact On Organizational Performance Metrics | Tracks improvement in business outcomes like sales, productivity, and compliance post-training. | |
| 11 | Stakeholder Satisfaction | Assess whether employees can effectively apply their classroom learning to their careers and evaluate performance metrics. |
LMS-relating training KPIs
1. Activity Pass/Fail Rate
Normally, regarding this learning and development metric, many leaders only care about the contemporary results of test-takers and make comparisons between one and another (which is completely incorrect in assessing an employee’s skill capacity). However, you can totally make the most out of this basic metric by observing the rate across months rather than across employees for a single course in order to help identify aberrations.
For example, if it’s typical that 70% of employees pass a specific test, and one month, it suddenly drops to 30%, this may signal that the first test is too easy and the second is too hard, thus employees can not adapt to the pace of the knowledge levels. Furthermore, this KPI may be used to map out sites where workers pass at a high rate as well as sites where workers fail at a high rate.
2. Average Test Score
The second training KPI that you need to pay attention to is the test score. For example, when adopting a new modification in your training program, tracking test results over time can help you to evaluate if the change has had a good or negative effect.
It’s possible that the unanticipated shift in average test results is due to a change in the field. Before asking the employees with low scores about their performance, maybe you should review the training materials because maybe the changes in scores come from the unmatched knowledge between the two levels.
3. Training Completion Percentage Rate
You can also evaluate the level of employees’ responsibility since this report displays the percentage of students that enroll and complete the course, and indeed their compliance. As part of your learning and development metrics, the completion rate provides a vital indicator of engagement and effectiveness.
For mandatory, compliance-based training, you’d expect the completion rate to be 100% every quarter. You can run this test a few weeks before the end of the quarter and, if the completion rate is less than 100%, alert department managers so they can make sure employees finish their required training on time.
4. Training dropout rate
You can just assume that the training dropout rate is clearly opposite to the completion rate and knowing one is enough. In fact, analyzing the dropout rates brings more insights instead of considering it as a contrast to the completion rate. Frequent dropouts may derive from some common issues such as inadequate involvement with teachers, insufficient assistance from instructors and/or the school, lack of allocated time for online courses, and lack of motivation. After reading the numbers and pointing out where the problems are, it is easier for training developers to decide what to change.
5. Course Attendance Rate
If you have a monthly optional, elective-based course, this would be a helpful report to run. For instance, suppose you give leadership training once a month and have 20 seats available. This report will allow you to keep track of how popular your organization’s elective-based course is, adding another layer to your learning and development metrics.
Useful tip: If you are struggling with the low attendance of your employees even though you try your best to force them to take the courses, it is time to make some improvements regarding the learning experience.
6. Average Time to Completion
Numbers don’t lie. That’s why completion time is also another metric to keep track of because it says a lot about the level of training materials. Running a report to determine average completion time (or even total combined completion time) might be a crucial part of calculating training ROI. To begin calculating the cost of training, multiply the number of persons who have finished it by their average completion time, then multiply that by the average hourly pay rate.
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Business-driving training KPIs
If your training program is new, it’s fine to focus on KPIs that are related to the training only, but as it expands, you’ll need to include more L&D metrics that illustrate how training affects general company performance.
7. Employee Engagement
Employee engagement as a KPI within workplace training can’t be ignored for it quantifies the quality of employee training, enhances employee retention, and reduces turnover rates.
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8. Knowledge And Skill Retention
A key question that should be raised after any business-related LMS courses is: how much value is LMS training giving to the specific team and the whole company? This indicator, which evaluates how much learners can retain the knowledge and skills they gain in training, is a crucial part of learning and development metrics. It can imply how effective the training was.
9. Transfer Of Training
Corporate training’s main objective is to enable employees to convert knowledge into skill. This is why we attempt to align learning with learners’ desired outcomes and the general success of the company. The ability of workers to apply what they’ve learned in class to their jobs is an important KPI for measuring the efficacy of training.
10. Impact On Organizational Performance Metrics
Businesses may use training to grow sales, improve service efficiency and productivity, and maintain compliance. This means that training is the key to improving individual and organizational performance. Learning and development metrics can help measure the impact of training by evaluating the difference between performance measures before and after training, which is essential to understanding how training contributes to company ROI.
11. Stakeholder Satisfaction
Stakeholders get the last say on whether or not training is effective. They look to see if employees can apply what they’ve learned in class to their careers. They are also in charge of the team’s and individual employees’ performance metrics. Given this, it is reasonable to conclude that stakeholder satisfaction is a key indicator of successful training programs.
Conclusion
Any firm trying to assist its people and business to flourish may benefit from using employee learning and development metrics. You can utilize widely used generic key performance indicators, design your own, or employ a professional team to help you determine the optimum KPIs for your training. In any case, understanding more about KPIs while keeping the information offered in this article in mind is a good place to start.
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