Companies that provide or promote training programs to workers must also ascertain ROI. Employing the means to measure efficiency of training programs is helpful, if not utterly essential.
Training programs are one of the largest investments of companies wanting to improve the performance of employees, especially those in the bottom line of the organizational hierarchy. However, there may be questions in the efficiency and effectiveness of training programs. It is important then to measure the efficiency of training programs to ascertain the return of investments of companies cashing out for production improvement for the attainment of organizational goals.
Efficiency is defined as the capacity or power to produce the desired result at a minimum amount of time or resources. In accounting, it refers to the costs of inputs per outputs produced. For instance, a production facility is deemed efficient in making a particular product when it meets the budgeted amount of input or less to produce the required units of output. In training programs, it may seem efficient when the management has seen a rise of productivity level of workers in correspondence to the training budget and the actual amount of expenses and the time duration of training programs.
Moreover, a training program can be considered efficient when the revenues of the enterprise increase and that the program is within the means of the training budget.
Some companies may also measure the efficiency of training programs by comparing the productivity level of an individual worker to the training budget per employee. The company checks the result of the training program by evaluating the performance of the individual worker before and after the performance-enhancement program.
Cost is also one of the determinants of efficiency measurement of training programs. Companies that provide training programs to employees can see the worth of their investments by comparing the actual cost of the training to the training budget with the production output and revenue after the training program.
There are certain tools used to measure the efficiency of training programs. They may be within the scope of production management and accounting. Accountants, particularly management accountants, measure the costs of training budget and actual expenses, as well as the return of investment of the business-improvement programs, aside from capital acquisitions. The roles of the accountants and managers have certain significance to the decision-making and performance evaluation in the management level. The HR department also has important roles in the training of employees.
Training programs are perhaps one of the viable investments an enterprise can avail. It is not only for the betterment of the company, but also for the benefit of the employees. It is important then that business owners and managers, as well as HR personnel, to relay to employees the effects and benefits of training programs.
What are the tools used to measure efficiency of training programs?
Accountants may calculate the return of investments of training programs. The HR department may also take part in measuring the performance of employees that have undergone training programs. The management level checks and evaluates the efficiency and effectiveness of the employee-improvement programs using different relative factors.
There are traditional measurement tools used by different departments of an enterprise to determine the return of investment, efficiency, and effectiveness of training programs. The electronic tools can help in delivering the measurement data. However, electronic means cannot be considered replacements to the existing tools of measurement used for training programs evaluation. Instead, they are regarded as supplements in providing the accurate or closer to precise measurement for evaluation.
Tools used to measure efficiency of training programs may vary or are somewhat similar in every company that considers training programs as vital for the achievement of organizational goals.