While Learning and Development remains a business priority, a recent ExecSense survey found that many organizations still do not align learning objectives with overall business goals. There was agreement from 90% of respondents believe “There is a tie between learning and organizational performance.” However, when asked what success metrics are evaluated related to the impact of training and development or Return on Training Investment, 60% of executives responded that their current organizations DO NOT track the return on training investment.
There was no precise formula for Return of Training Investment reported from these organizations. However, among the remaining 40% of leaders who reported that their organizations do track professional development results, there are some commonly recurring KPIs. Namely: Customer Satisfaction, Faster Growth, Lower Employee Turnover, Reduced Cost and Accelerated Innovation.
The number one indicator for success is higher customer satisfaction, followed by faster growth and lower employee turnover. Companies also reported reduced costs and increased innovation as additional indicators.
We know that individualized learning can be incorporated into annual performance reviews and personal metrics. With the growing number of tools available to measure and analyze team and individual performance, naturally companies are also seeking to measure the effectiveness of professional development mainly through the lens of impact to business results.
The conversation continues about bringing actionable knowledge and skills into organizations.
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