Training Services

Training Services

Metrics Selection Guide

Use the following guide when selecting metrics for measuring return on investment (ROI) in training services. There are three categories of metrics from which to select — Performance, Training, and Human Capital.

Performance Metric Matrix

The following table provides metrics for measuring business impact. Each column and row represents a metric category. The intersection of each column and row offers a selection of metrics to use when measuring ROI:

  Service Quality Production
Cost
  • Service cost as a percentage of sales
  • Preventative maintenance cost
  • Monthly maintenance cost
  • Warranty cost as a percentage of sales
  • Rework costs
  • Cost per unit
  • Downtime cost
  • Overtime cost
  • Required vendor support cost
  • Production cost as percentage of total cost
Time
  • Mean time to respond
  • Mean time to repair
  • Service time per call
  • On time shipments
  • Order response time
  • Time to market
  • Equipment downtime
  • Setup time
  • Cycle time
  • Output per hour
Quantity
  • Number served
  • Backlog volume
  • Inspection yields
  • Units produced
  • Tons manufactured
  • Items assembled
  • Units shipped
Errors
  • First time fix rate
  • Calls handled
  • Scrap percentage
  • Waste percentage
  • Programming bugs
  • Product defects
  • Number of accidents
Reaction
  • Customer satisfaction
  • Benchmarking with competition
  • Employee complaints, grievances, or suggestions

Training Metrics

The following table provides three categories for measuring training interventions:

Cost Quantity Quality
  • Training cost as percentage of payroll
  • Average investment per hour of training
  • ROI for new technology training
  • Dollar cost for no shows
  • Percentage of target audience to complete compliance requirements
  • Total training hours provided
  • Average number of training hours per employee
  • Training hours by function, system, or production line
  • Training hours by group
  • Employee satisfaction ratings
  • Perceived improvement by others
  • Percentage of target audience who use newly learned skills/knowledge

Human Capital Metrics

The following table offers metrics for measuring the only "active" asset, the people in an organization:

Metric Explanation
Exempt Percentage Number of exempt FTEs* as a percentage of total FTEs
Contingent Percentage Number of contingent FTEs as a percentage of total FTEs
Accession Rate Replacement personnel and personnel for new positions as a percentage of the work force
Total Labor Cost Revenue Percentage All labor costs as a percentage of total revenue
Human Capital ROI Revenue (expense minus total labor cost) divided by total labor cost
*FTE = Full Time Equivalent (includes full-time, part-time, and contingent labor hours)