Training Effectiveness: Presentation To
Training Effectiveness: Presentation To
Presentation to:
AESC
September 13, 2005
How Do We Measure
The Effectiveness of Training
Reaction
Knowledge Acquisition
Behavior Change
Business Change
Return on Investment
REACTION
Can Be: Measure:
Evaluation forms Trainer feedback
Discussions Participant feedback
Questions Management feedback
Observation Outside feedback
Grapevine Vendors
Partners
Customers
Why Measure beyond
Reaction?
Expected Program Life Cycle
Importance of Program in Organization’s
Goals
Cost of the Program
Visibility of the Program
Size of the Target Audience
Extent of Management Interest
Knowledge Acquisition
How To Measure:
Pre-Test / Post Test
Post Test
Achievement Test / Standardized Exam
Participant Report
Manager Report
Behavior Change
Self Report
Peer Report
Manager Report
Observer
Trainer
Auditor
Business Change
Measures business impact changes related to
the training program
Examples:
Service Improvement Turnover
Productivity Reduction in Errors
Sales Decrease in LTIs
Forecast: 4.5%
2003 4.0%
3.5%
2004
3.0% 1998
2.5%
2.0% 1999
1.5% 2000
1.0%
2001
0.5%
0.0% 2002
Benchmarking Training
Service Investment
Leaders
U.S. Training Investments
on the Rise Again, 2002
Training Expenditures per Employee
Forecast: $1,800
2003 $1,600
$1,400
2004 $1,200
$1,000 1998
$800 1999
$600 2000
$400 2001
$200
2002
$0
Benchmarking Training
Service Investment
Leaders
Record Levels of U.S. Employees
Receive Training, 2002
% of Employees Trained
Forecast:
100
2003 90
2004 80
70
60
50 1999
40 2000
30 2001
20 2002
10
0
Benchmarking Training
Service Investment
Leaders
Training Investment Leaders Provide
Twice As Many Hours of Training
(U.S., 2002)
Training Hours Per Eligible Employee
Forecast:
2003 70.0
60.0
50.0
Benchmarking
40.0 Service
30.0 Training
20.0 Investment
Leaders
10.0
0.0
1999 2000 2001 2002
U.S. E-Learning Jump, 2002
Forecast: % of Training Time via Technology
2003
16.0% 15.4%
14.0%
12.0%
10.5%
10.0% 9.1%
8.5% 8.4% 8.8%
8.0%
6.0%
4.0%
2.0%
0.0%
1997 1998 1999 2000 2001 2002
Profiting from Learning, 2000
ASTD Study:
575 publicly-traded U.S. based firms
enabling ASTD to link their specific
investments in training and education
(late 1990s) to publicly-reported financial
performance data.
Total Stockholder Return
Total Stockholder Return Increases with
Higher Training Expenditures
25.00%
Shareholder Return ,
Subsequent Year
20.00%
Median Total
15.00%
10.00%
5.00%
0.00%
$125 $370 $660 $1,361
Training Expenditures Per Quartile
More Training =
Outperform the Market
Training Investments
How Big is the Stock
Return Effect?
ASTD’s Mission:
Through exceptional learning and performance, we
create a world that works better.