L&D managers need only look at a few recent research studies to understand that the pulse of L&D is beating for measurement. For example, the 2020 L&D Global Sentiment Survey conducted by Don Taylor asked, “What will be hot in workplace learning in 2020?” 2,278 responses were collected from 86 countries. Learning Analytics received the most votes, moving up from 3rd last year. The research also showed the shift away from a focus on the creation and delivery of content towards personalized learning, supported by data. More about this research may be found at https://donaldhtaylor.co.uk/insight/the-ld-global-sentiment-survey-2020-first-thoughts/.
Harvard Business Review did a study, Where Companies Go Wrong with L&D. It found that organizations spent $359 billion globally on training in 2016, but to what effect? 75% of 1,500 managers surveyed from across 50 organizations were dissatisfied with their company’s L&D function. 70% of employees report that they don’t have mastery of the skills needed to do their jobs. Only 12% of employees apply new skills learned in L&D programs to their jobs. The study’s conclusion: not only is the majority of training in today’s companies ineffective, but the purpose, timing, and content of training is flawed. More about this research may be found at https://hbr.org/2019/10/where-companies-go-wrong-with-learning-and-development.
There are several reasons why the above environment exists: no “Hard Data” to link Learning’s impact, short-term focus on programs not processes, a lack of broadly accepted predictive measures of impact, no industry standard process to link learning’s value to the business, and learning professional’s discomfort in discussing operational KPI’s in meaningful ways.
Performitiv has found 8 metrics that may help overcome these issues and we're working with leading organizations to better define and measure them.
Talent Profit Contribution – Revenue minus labor expense. It is a measure of Workforce Performance tied to Income Statements.
Talent Productivity Growth – (Revenue minus Labor Expense)/Labor Expense. It is a measure of Workforce Performance tied to Income Statements.
Impact Above Average – Business Outcome Indicators are survey questions tied to desired business outcomes. They provide insights to impact, alignment and value.
Learning Net Present Value– Measures the overall value of a program based upon multiple years and multiple variables. It is very effective at analyzing the optimal mix of resources when designing a learning program.
Time to Successful Performance - Number of days between start date and date of first demonstrating successful performance.
Time to Proficiency – Number of days between start date and date of demonstrating consistent successful performance in an ever changing work environment.
Star Performer Gap – The percentile difference between a top performer rating and a lower performer rating.
Optimized Mission/Work Processes – The percentile rating of a mission or work process with 100 being optimal.
Do you want to learn more about these 8 metrics? Contact Us and we're happy to share more about the Talent Development Optimization Council that is contributing to this initiative and the technology that is automating it within L&D departments.
The Performitiv Team