Blog Article: Can your company effectively measure ROI on training?
How can your company effectively measure ROI when it comes to professional training?
One of the most poignant questions for a company (and one we get asked frequently) is “how can I measure the ROI on training/professional qualifications for my business?” This has often been troublesome for some businesses so we have endeavored to help shed some light on the world of measuring the ROI from training.
Firstly it all depends on the qualification, for example ISMM sales qualifications can be measured by an increased conversion ratio from your sales team post training. CIM Marketing Qualifications and CAM Foundation Digital Marketing Courses are also measurable though increased lead generation/customer traffic (both physical and digital). There are many other target led KPIs you can associate with sales and/or marketing qualifications but those are just two simple ways to see direct results from Sales & Marketing training.
The area that we field the most questions on though is how do you measure ROI of management training? This is a more complex question; aside from the traditional measurement of staff retention within the company (developing managers internally instills a sense of loyalty and reward within the company) there is also one main element that most companies forget to measure when it comes to management; employee engagement.
Improved employee engagement is by far the highest on the list of reasons for management training in a company. Yes there may be benefits to the operational side of the business, strategy and development namely but leadership and engagement are wholly more important and measurable. The above ROI KPIs can be improved as a direct result of successful management training. Victor Lipman wrote 10 reasons why companies should invest in management training for Forbes in 2012 that the number one reason for training your managers was:
“An employee’s relationship with his or her direct manager is the most important single factor in employee engagement.”
Yet the Chartered Management Institute as recently as November 15th 2013 posted via managers.org.uk that:
“Forty-nine per cent of staff claim their boss never or rarely apologises, but nearly 60 per cent of UK managers believe they always say sorry - suggesting that there is a need for better management training among supervisors and employers.”
Couple the above quote with the fact that only 25% of managers have any form of management training and you can see why the engagement is so low. Even Mr. Lipman agrees that management training is essential nowadays; to change outdated perceptions that anyone can manage:
“…there’s no widely agreed-on skillset for management (good managers come in all shapes and sizes), there’s an assumption everyone knows how to do it. This is akin to someone who’s never driven before being given keys to a car and told: “Drive.” (Many many years ago, this is how I first learned to manage. I blundered my way through it. Trial and error. It wasn’t pretty.)”
So why take risks on bringing in managers or promoting without training? Surely the sensible option is to promote from within, find key candidates who know your business in and out as well as showing the desire and motivation to move forward in your company and train them to be effective and engaging managers. From this method there are more accurate ways to measure ROI. Firstly you will be able to see personal development from a candidate you know. Secondly you will see increased productivity across a team through successful engagement with team members the manager not only knows but has been taught to engage with. Finally other team members will see the incentive to progress in the company generating another level of self motivated and keen future managers.
An ROI both personally or as a company can be found in all elements of professional training depending on how it’s executed and how it’s received. After all an ROI is in the simplest terms an assessment of value for money. Having trained, motivated and developed team members has to be a worthwhile investment for a company. In the same way personal development in any area has to be desirable for anyone looking to grow and develop their chosen career path.
If you would like to discuss group training in Marketing, Management or Sales for your company or individual qualifications for key team members please get in touch via contact Andy Hart today.
Also if you are a High Growth SME business have a look at our Funding page for information on the fantastic Growth Accelerator scheme a goverment backed training scheme providing training funding for small & medium sized businesses.