How Can HR Prove the ROI of Soft Skills Training to Management? Seeking Advice on Effective Feedback Presentation

Dear All,

I have been involved in a lot of OD initiatives in my organization and am trying to put a process in place to understand the training effectiveness in the organization.

These days, organizations are investing heavily in Training & Development of employees, particularly in soft skills. However, how does HR justify the Return on Investment to the Management regarding the expenditure on the trainings?

Even for the various training sessions conducted, the norm is to collect feedback through feedback forms. How can we present this data to the management?

Kindly advise.

Warm Regards,
Nidhi

If training changed behavior, wouldn't all trained employees become successful employees? The secret to effective training is to hire and train employees who have a talent for the job.

Hi,

If the organization provides training to its employees, it does not mean that they are not successful employees. They may be doing very well in their current role, but the organization wants to prepare them for future roles and responsibilities. Training may also be aimed at further improving their current performance.

Nonetheless, my question is in terms of knowing the ROI on the training given, considering the right talent is hired. I hope to receive some inputs on that.

Regards,
Nidhi

Hi Ankit,

Being at the end where you provide trainings, I hope you can help me with this. I would definitely like to know how we can measure the effectiveness of the training and prove to management that we are achieving the expected returns.

Regards,
Nidhi

Hi,

I suggest having an objective for each training, i.e., why is this training being conducted and what you want to achieve from it? Once it is clear, you can set your own guidelines for measuring the effectiveness. In my company, we identify both the objective and the method of measuring effectiveness in the training calendar itself. For need-based trainings, we ask the requester about this or work with them to establish the same. You can also use Kirkpatrick's 4 levels of evaluation.

Another method we use for soft skill training is having a review session after 15 days and asking the participants to share their experience of applying the learnings.

Regards,
Ramesh

Hi Ramesh,

Thanks for the inputs. Even we do the same, but what I am looking at is how do we present the facts and figures to the management to substantiate that the investments made in training are giving returns. Hope you have some suggestions for this as well.

Regards, Nidhi

Hi Nidhi,

My suggestion is to identify key deliverables from the training and develop a 5-point or 10-point scale to measure the before and after effects. You can also create a soft skill level matrix (4 Levels) for all the participants and demonstrate their progress to the management.

I can share an example from my previous company where we conducted a program on Human Relation principles. There were 10 principles, and all participants were given one month to apply these principles in their daily lives. On the 31st day, they had to make a presentation. The top 3 presenters received rewards. To support this with data, we need to use a before-after scale.

I encourage the HR community to suggest other options, preferably with examples.

Regards,
Ramesh

Hi Ankit/Ramesh,

We are a startup telecom company, and we are in the process of preparing a training policy. Can I request help in setting one, please? Maybe a few guidelines will surely help.

Thanks,
Chandrika
chandrika.anil@gmail.com

Hello Ramesh,

Can I request you to give some more details on the program on Human Relation principles, please? The 10 principles. We could also try it at our office too.

Thanks,
Chandrika

Hello Nidhi:

"If the organization provides training to its employees, it does not mean that they are not successful employees."

Of course, but why are so many trained employees not successful? Managers like to blame the employee and/or the training department.

"They may be doing very well in their current role, but the organization wants to prepare them for future roles and responsibilities. Training may also be aimed at further improving their current performance."

That is all true, but why do so many trained employees fail to become successful employees after training?

"Nonetheless, my question is in terms of knowing the ROI on the training given, considering the right talent is hired. If the right people are hired, i.e., all trainees become successful employees, would an ROI of training be needed?"

Hi Nidhi,

The discussion was revolving around the ROI on training. Sorry for the belated reply. There are a few queries in this regard:

1. What type of training do you give them and for what purpose?
2. What is the time frame you require for the employee to be more productive?
3. Do you measure the training effectiveness? (Taking a recap after a certain period of time, say for a period of 3 months)
4. What is the percentage of employees being shifted to other areas for which the training given is not useful?
5. Is this training a motivator for their improvement?

Based on this, we can arrive at a fairly good calculation of the ROI. If you need more info, please email me at sreedhar2005@gmail.com.

Regards,
Sreedharan

Hi Nidhi,

Could you please tell me what kind of industry/business you are in so that I can explain the ROI analysis method based on that? Also, a couple of examples of trainings that have been conducted. Based on that, we can work out the method to calculate ROI.

Waiting for your post; then we will take this forward.

Thanks

Dear ma'am,

I am a management student undergoing my summer training. In fact, I'm doing my training in the same field of study as what you are a specialist in! It is best and unique practices in T&D in the manufacturing and services sector. Could you by any chance help me out regarding the same? I would be highly obliged if you could.

Regards,
Radhika

Hi Ramesh,

You are very correct. Once we set our objectives, half the work is done. Most of the trainings seldom have objectives. In fact, there should be trainings for all the trainers on HOW TO SET OBJECTIVES. This is a very crucial and important aspect. Hope you all agree to this.

I have information on "Why Trainings Fail." I can share if you are interested.

Regards,
Dr. Shanti Rekha

Hello,

You had these queries:

1. What type of training do you provide and for what purpose? I am specifically discussing the soft skills training here, being given in terms of leadership development, etc.

2. What is the time frame you require for the employee to be more productive? Understanding that soft skills training cannot work miracles overnight, we are looking at a long period of development and consider the expenditure on training as an investment. The time frame may vary from 1-3 years.

3. Do you measure the training effectiveness? (Taking a recap after a certain period of time, say for a period of 3 months). We do that, but considering the number of people undergoing training, it does not appear to be a scalable approach. Moreover, how do we capture the effectiveness?

4. What is the percentage of employees being shifted to other areas for which the training given is not useful? We do not have such statistics, but the major area where failure has been felt is in Team leaders handling their teams and groups.

5. Is this training a motivator for their improvement? I did not fully understand your question, please explain.

I have tried to answer your queries to the best of my understanding. If you need anything else, please let me know. We are a software company with a major populace from IITs and top institutes.

Regards,

Nidhi

Hello,

When I read your responses, I have a feeling that you are convinced that the training and development in the organization do not add any value. Before you answer any of my posts, I request you to have an unbiased view of the query.

Training in my organization has not given us the fatal results you have talked about, such as trained employees not becoming successful, etc. All I am asking is how do we quantify it, considering the time taken in the process of developing one person. Please understand that soft skill development does not happen through one classroom training; it is an ongoing process and an ongoing investment.

I think the most obvious business plans in the organization look for ROI. Then why not training, even if you are trying to suggest that the results shall speak for the effectiveness of the training.

Regards,
Nidhi

Dear Bob,

I do not agree with the premise that if the hiring is right and the employees are successful then we do not need to do an ROI on training. I think your understanding of the need for doing an ROI is not clear. We need to do an ROI in order to understand what impact training has on enhancing the performance of the employees and contributing to the bottom line of the company.

Any training program has to make a difference to the way of working of the employee; otherwise, it is of no use. The difference it makes must impact the productivity of the employee and, therefore, the performance of the company. Having said that, it is also true that it is not always possible to measure the ROI for all training programs, nor is it economically feasible to do so. But those training programs that should be studied for ROI (and that choice has to be made scientifically and judiciously) must be attended to, and the study will give the training department valuable insight into how they are performing and what changes they need to make to be more effective and justify their existence.

Thanks,

MM

Hello MM:

I do not agree with the premise that if the hiring is right and the employees are successful then we do not need to do an ROI on training.

You may be correct. However, if every new hire becomes successful after training, then executives may well stop asking for an ROI before training.

I think your understanding of the need for doing an ROI is not clear. We need to do an ROI in order to understand what impact training has on enhancing the performance of the employees and contributing to the bottom line of the company.

Yes, I know.

Any training program has to make a difference to the way employees work; otherwise, it is of no use. The difference it makes must impact the productivity of the employee and therefore the company's performance.

I agree, but what if all trainees are successful after training?

Having said that, it is also true that it is not possible to measure the ROI for all training programs, nor is it economically feasible to do so.

Perhaps.

But those training programs that should be studied for ROI (and that choice has to be made scientifically and judiciously) must be attended to. The study will give the training department valuable insight about how they are performing and what changes they need to make to be more effective and justify their existence.

What if they are always successful?

Hi Bob,

Thanks for your reply. Before I answer the questions raised by you, I wanted to know if you have ever done an ROI on training.

Now, for your questions: You seem to be stuck on two points:
1) that if all employees are successful after training then why do ROI?
2) If all training programs are successful then why do ROI?

Answers:

1) I think it is quite Utopian to think that all employees will be successful after training. Even if it were so, then the ROI will let us know how much difference the training has made in that success. For example, if an employee was producing X in Y hours and now has started producing Z, it is worthwhile to study how much of Z-X has happened because of training.

2) All training programs being 100% successful is Utopian again. You do not seem to accept the fact that things can go wrong or deviate from planned output due to many factors not always under your control.

Also, ROI is not about whether the training is successful or not; that is a relative term, and what you might term as successful may not be the same as my definition. ROI is about what difference the training has made in fiscal terms, even negative, and what changes, modifications, improvements we can make.

Hope this helps in your understanding of ROI and removes some of the biases against it.

Regards,

MM

Hello MM:

Have you ever done an ROI on training?

That is not what I do.

1) I think it is quite Utopian to think that all employees will be successful after training.

That is the point of my message. It may be utopian for you but not for employers who know how to hire and train successful employees. Job failure after training should be a rare event.

Even if it were so, then the ROI will let us know how much difference the training has made in that success. For example, if an employee was producing X in Y hours and now has started producing Z, it is worthwhile to study how much of Z-X has happened because of training.

Yes, I know the ins and outs of ROIs, but managers hide behind ROIs because they do not trust trainers to provide training that works—far too many trainees fail to become successful employees after training. That said, training failures are almost always the fault of the hiring manager, not the training department.

2) All training programs being 100% successful is Utopian again.

What if it isn't?

You do not seem to accept the fact that things can go wrong or deviate from planned output for many factors not always under your control. When we stop training the wrong people, training success soars.

Also, ROI is not about whether the training is successful or not; that is a relative term and what you might term as successful may not be the same as my definition. ROI is about what difference the training has made in fiscal terms, even negative, and what changes, modifications, improvements we can make.

Would an ROI be easier if all trainees were successful after training?

Hope this helps in your understanding of ROI and removes some of the biases against it.

Oh my, I'm not against doing ROIs. In fact, I think ROIs are underused by managers who don't know what it is or how to do it or who are incapable of evaluating the results and/or using the results for decision-making.

Bob Gately, PE, MBA

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Dear Bob,

What you are saying is that ROI, if used properly, can be quite effective. However, do you not see any point in calculating ROI for training if the programs are running successfully, by whatever measure decided by the organization? Is that right?

Regards,
MM

Hello MM:

"What you are saying is ROI, if used properly, can be quite effective."

Yes, but only if the reader knows what to do with the information.

"But you do not see any point in doing ROI on training if the programs are running successfully by whatever measure decided by the organization, is that right?"

Close, if the training department's work product, i.e., trained employees, becomes successful employees, there is less of a need to convince management using an ROI. Of course, if we are asked to do an ROI, we do them.

Hi Nidhi,

The ROI on training can never be measured in monetary terms. It is to be measured more in terms of employee productivity. Management in any professional company always understands this and will seldom ask for direct justification about the expenditure. Yes, they might look for feedback from employees in terms of the changes they have experienced in outlook towards work and the overall environment.

As regards the feedback you take, you might present it in a simple Excel format, or you can collect and analyze it and then put it forward in a formal presentation before management. Being HR, you can provide the management with some ideas and suggestions drawn from the feedback. Ideally, you should not draw any conclusions but leave that part to management.

Hope my ideas have helped you in some way.

Regards,
Gaurang S

Hi Nidhi,

Thanks for the reply. I am working out the formula for your requirement. I will get back to you asap.

Regards

Sreedharan

You had these queries:

1. What type of training do you give them and for what purpose?

I am specifically discussing the soft skills training here, being given in terms of leadership development, etc.

2. What is the time frame you require for the employee to be more productive?

Understanding that soft skills training cannot do miracles overnight, we are looking at a long period of development and consider the expenditure in training as an investment. The time frame may vary from 1-3 years.

3. Do you measure the training effectiveness? (Taking a recap after a certain period of time, say for a period of 3 months).

We do that, but looking at the number of people undergoing training, it does not appear to be a scalable approach. And then again, how do we capture the effectiveness?

4. What is the percentage of employees being shifted to other areas for which the training given is not useful?

We do not have such statistics, but majorly where the failure has been felt is in Team leaders handling their team and groups.

5. Does this training act as a motivator for their improvement?

I did not understand your question. Please explain.

I have tried to answer your queries to the best of my understanding. Anything else needed, please let me know. We are a software company with a major populace from IITs and top institutes.

Regards

Nidhi

Hi Monoswi and Sreedharan,

I am preparing a dissertation on measuring ROI through training effectiveness. Kindly reply to Nidhi's query in this forum itself so that others can also benefit from the discussion. Alternatively, you can email me the file to my email address. My email ID is mitali.lko@gmail.com :)

Thank you!

Follow the Kirkpatrick model. Though it's not a firm model, it's still the acceptable norm. Let me know if you have an understanding issue.