“Our companies urgently need to learn how to enhance their Human Capital, they need to change. Said with common and ordinary words, it is imperative to learn the art of fostering champions in our organizations, capable and involved people, that one day they may ask themselves in the middle of the job: will I be fully employed? Will I learn at the required speed? Do I know what my capacity is? Will I be able to share the knowledge? and your answer is a convinced Yes in all cases ”. (Castellanos Cruz, R.)
Do you think that the formation of your company should take an important turn ?;
Or perhaps, can you improve the quality of the training that is developed and evaluated in your company? Or are you asking yourself: are we in the evolutionary moment of the company to develop a more systemic model for evaluating training ?;
Or are they insisting every day on reducing the costs of training (costs, costs and costs) when you. Can't you show them that it is an investment and a value for your company? Or are you simply wondering if the training plans and programs that are implemented in your organization are having an impact on the areas and people of your company? Do the actions they manage impact on the goals and objectives of your organization ? Is your area increasing the labor productivity of employees through the actions they take? (And if you do not know it, how could you find out?), could in this way detect improvement actions and progress by systematically evaluating the courses they develop ?; He asks himself, will I be having results? And economic benefits for shareholders ?;or behind these questions there is a broader one: would we be more credible and would we function in a different and more professionalized way if we evaluated the impact and profitability of the training we carry out?
These and many other questions are those that we are approached daily in the areas of training and Human Resources. The only certain thing is that we need more and more, with more efficiency, efficiency and effectiveness, evaluative training processes, holistic learning methodologies and tools for the evaluation development of more reliable training plans, programs and actions adapted to real demands. of organizations and companies, which require constant changes, greater and better capacities and competencies, and models and tools that evaluate and grow the intangible assets of their companies to continue competing in the markets of the era in which we have lived: the age of immediacy, the age of efficiency.
A global business scenario that requires human capital professionals to design new training environments. In an article I wrote some time ago for a Spanish Human Resources and training website, I said that “for a Learning and Development Program to be really effective, and not just a circus show, it has to overcome internal resistance and external barriers. This will suppose us to conceive learning environments that articulate conditions for the development of key competences in the participants, through the generation of expeditionary environments, in such a way that we can approach learning in a systemic and flexible way to allow the trend towards autonomous and intrapersonal learning., In the first instance; and create an environment conducive to dialogue and reflection,stimulating and challenging, developed with purpose and opportunity to be truly effective and creative, in the second instance. The classroom environment as a synergistic whole ”.
As already stated some time ago, we urgently require new models and tools of organizational development to properly manage attitudes and commitments, measure performance, the potential of employees and the impact of training in the company, in short, to become agents of change as real strategic partners of the company in which we are.
Assessing the impact and profitability of training is one of the models that evaluate and develop the profitable potential of human intangible assets. Likewise, this type of evaluation is a modality that requires, in order to carry it out, that other previous evaluation modalities have been carried out, such as the evaluation of training needs, the evaluation of the reaction by those attending the different training programs, the evaluation of knowledge and real learning of the participants, the evaluation of the transfer of what has been learned to the job,… Possibly, the evaluation of the impact and profitability of the training is the one that, aided by the above,can answer a good part of the questions that all professionals in the training and development of Human Resources have been haunting our heads for a long time. Given the growing magnitude in training and development of investments that are currently handled in companies, human capital areas require tools that justify said investments, therefore, they require evaluating their benefits and results in quantitative and economic terms. In this sense, evaluating the impact and profitability will allow us to demonstrate the results that the investment we have made has generated in spades, both qualitatively and economically. Or the other way around, it will allow us to recognize what and what are the programs and courses that do not generate any added value in our company.
After more than ten years of educational and bibliographic research and continuous field studies in both national and international companies, throughout the first four months of 2008 I will publish a book that I have called “Measurement of the Impact and Profitability of Training: In Search for the ROI of Training ”which aims, through multiple experiences in companies, how to quantitatively measure the benefits, results and profitability of human capital and more specifically of business training. It is about measuring the intangible, searching throughout these pages how to get to the financial ROI -Return on Investment, the return on the investment rate-, a whole methodology of a quantitative and economic nature,that will answer how to assign a monetary value to the invested training (the benefits it brings to the company as a result of its management), which will be complemented in the following pages with qualitative methodologies, (since not everything in training and development should have a component economist) to give the training and Human Resources areas greater credibility of the strategic role of training and Human Resources. As Einstein said in his theory of relativity, "What is measured is not always important, and what is important cannot always be measured, but if we do not measure we do not know."(since not everything in training and development should have an economic component) to provide the training and Human Resources areas with greater credibility of the strategic role of training and Human Resources. As Einstein said in his theory of relativity, "What is measured is not always important, and what is important cannot always be measured, but if we do not measure we do not know."(since not everything in training and development should have an economic component) to provide the training and Human Resources areas with greater credibility of the strategic role of training and Human Resources. As Einstein said in his theory of relativity, "What is measured is not always important, and what is important cannot always be measured, but if we do not measure we do not know."
With a model oriented to the "Value Chain in measuring the impact and Profitability of Training: the final process to reach ROI" and based especially on the Kirkpatrick and Phillips model, I develop a new methodology, called Human Capital Training ROI (HCTR), where I seek to reach the ROI of Training from 5 perspectives of training evaluation:
1. Satisfaction Perspective (how the participant reacted to the Program and what the facilitator observed),
2. Real, tacit and explicit Knowledge Perspective (what the participant learned and converted into real knowledge),
3. Efficiency Perspective (what tools We require to isolate the factors of the training),
4. Value Perspective (what knowledge are you going to apply to your work role and if you can do it, what results did you get, if your performance in the position improved and if any change was achieved in the organization),
5. and finally, ROI perspective (Return on Training Investment) where we will finally clear up the unknown and give a monetary value to the benefits of Training.
In short, this book includes the requirements of the areas of Training and Human Capital of a strategic nature, which are already sensitized to the primary need to translate their management into economic variables. A whole methodology to evaluate training, and more specifically to measure the impact and applicability of knowledge to the job, and the profitability of training plans and actions.
I would like to finally say that we all know that there are still few departments and areas of training and Human Resources in companies and organizations that evaluate the impact and profitability of training. The challenge is if you want to stop belonging to that group and champion the change, do you want to measure the contribution of training and Human Resources to the positive accounting and social results of your company? It is in your hands.
Excerpt from the book "Measuring the Impact and Profitability of Training: in search of the ROI of Training".
