HR METRICS –L&D

LET’S BEGIN WITH THE FOUR LEVELS OF

A N A LY T I C S . .

• Based on sophistication of understanding, the level of analytics adoption in an organization

can be classified as:
• Descriptive: Relevant metrics are identified, and data collected
• Diagnostic: Metrics are classified as inputs and outputs and inputs are mapped to outputs based
on statistical analysis
• Predictive: Amount of variance (dispersion from mean) of output variables accounted by specific
input variables is measured
• Prescriptive: Generic law-like statements on the nature of variables or relationship between them
are formulated
 Nominal Data: Segregation of employees on the basis
of department (1. Marketing Department 2. Finance 3.
Operations 4. HR)

Ordinal Data: If the HR Manager wants to assess the

attitude of employees on the effectiveness of a newly
introduced policy, then he/she can float an attitudinal
survey (Very Unhappy, Unhappy, Neutral, Happy, Very
Happy)
T Y P E S O F D AT A Interval Scale: Attachment of numeric values (0-Very
unhappy, 1-Unhappy, 2-Neutral, 3-Happy, 4-Very
happy)

Ratio Scale: Has the properties of all the other scales.

The CEO and CHRO of XYZ organization determine
an annual increment of 10% based on current salaries.
HR can calculate the exact bonus of all employees.
 SIMILARITIES AND DIFFERENCES
Feature Nominal Ordinal Interval Ratio
Order of value is known - Yes Yes Yes
Frequency distribution Yes Yes Yes Yes
Mode Yes Yes Yes Yes
Median Yes Yes Yes
Mean Yes Yes
Quantification of differences Yes Yes
between values
Addition and Subtraction Yes Yes
Multiply and divide Yes
Has true zero yes
P R O B L E M S W I T H D AT A

• Missing Data
• No Data
• Outdated Data
• Non-normal Data
THE START-HR METRICS

L&D
WHY IS L&D NEEDED?

Your views?????
B U T I S T R A I N I N G A LWAY S
THE BEST SOLUTION????

At the beginning of the year, your sales director asked for 100
new sales representatives to be hired. As multiple products
were being launched by the organization in the last 6 months,
the sales director hurried through the interview process and
from a pool of 250 applicants, 100 were hired.

In June, he complains that the representatives are not

achieving their monthly quotas. He is convinced they need
more sales training to address this issue and asks you to
design something by the end of the week.
THE L&D CYCLE

TNA

Training Training Design

Evaluation

Training
Implementation
NEEDS ANALYSIS FRAMEWORK

Organizational
Analysis

Task Person
Analysis Analysis

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Knowledge, Skills, Ability, Others (KSAOs)

Knowledge Ability
Physical and Mental
Understanding of concepts
abilities e.g. Spatial ability

KSAOs

Skill Others
Competency in performing Conditions, equipment use,
a task e.g. Negotiation skill deadlines, safety

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HOW WILL EVALUATING
L&D FUNCTION HELP????
E VA L U AT I N G L & D

Kirkpatrick’s model
H O W D O Y O U C O L L E C T D AT A AT
LEVELS???

Results-
Reactions-
Organization
Participants
records

Behaviour-
Learning-
Multi level
Test
data
Common Training
Metrics

• Training Cost Factor=Total Training cost/Total Number of

Training Sessions attended

• Training Headcount Investment Factor=Total Training

Cost/Regular Headcount

• Training ROI=Total Benefits/Total Costs

• Payback period=Total costs/monthly benefits

An application-based exercise!
The solution please
 Multiply total costs *00

What do you
need to Multiply total benefits*000
remember
here????
Monthly
benefits=1077321/12=89776.75
 Training Metrics (Cont….)

Direct Costs Indirect Costs

Facility Costs Planning costs (TNA)
Instructor Fees (External and Internal) Programme Design
Refreshment costs Trainee’s non work hours attending the training
Travel costs Internal trainers time away from work
Lodging Depreciation of training benefits over time
Training resources (hardware, software etc.)
Stationary
Overhead
Evaluation (Evaluator fees, license for analysis tools)
 Calculating ROI on a training
There are 40 data entry clerks in the combined bank. Their monthly pay
is Rs. 30,000. They work on an average 25 days a month, 6 hours in a
day. A clerk spends 12 mins daily correcting errors. The bank organizes
the training for the data entry clerks. The external instructor charges Rs.
20,000 for the training. The classroom space and audio-visual
equipment is rented out which costs the organization additional Rs.
10,000. The trainees will have to attend the training for one complete
day.
After the training, the clerks spent 50% less time correcting errors.
Calculate the ROI on training.

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 Calculations

Cost of Training   Savings from Training  

       
6 min
External Trainer Fees 20,000 Data entry time saved Or 0.1 hr (12*50/100)

Audio Visual Equipment Rent 10,000 Hourly pay 200(30000/25/6)

Downtime 48,000(30000/25*40) Savings per employee 20(200*0.1)
Total Cost 78,000 Total Savings per day 800(20*40)
Monthly Savings 20,000(800*25)
Total Annual Savings 2,40,000(20000*12)
2.08
ROI (208%) (240000-78000)/78000
Payback Period / Turnaround
time 3.90(78000/20000)
  < 4 months

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TOP KPI FOR L&D
OFFICERS

• Budget vs. Spent

• Learner Satisfaction Score
• No. of training hours per employee
• No. of programs delivered
• Employee engagement
• No show (%) for formal training
• No. of new programs launched
• % of employees with right skill level
• Time to competence
 Training Effectiveness Parameters for L&D department

Measurement Description Formula

Parameter
Time No of training hours per Total Training hours/Total
employee per year Employees
Quantity Percentage of employees trained Total Trained/Total Employees
Need Type Percentage of employees needing Total employees needing particular
particular training training/Total Employees

Diversity No of different training programs -

offered
Cost Return on Investment (Total Benefit – Total Cost)/Total
Cost
Trainer Type Internal vs External Trainer Internal/Total Trainers 23
THANKS

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