HR metrics can be the answer to all your problems.
Okay, maybe not all your problems. But the right metrics can help you get a better understanding of how your HR functions are performings. They’ll give insight on whether or not you’re spending your money in the right places.
We all know a robust training and development program for your employees is vital. Establishing a few HR metrics for your training program will ensure you’re creating an effective program and not wasting funds.
Before diving into the metrics, first, take inventory. Make a list of all the training and development programs that are available to employees and include the cost. This includes
- Learning management system (LMS) fees
- In-house production or outsourcing fees of content housed in LMS
- Wages for any trainers or HR staff responsible for training
- Tuition reimbursement and professional certifications
- External resources like conferences, seminars, and org memberships.
Here are two HR metrics to help assess your training and development program
Training Spend Rate
Training and development can be a big portion of overall labor costs. Only knowing the total cost doesn’t really help. Training spend rate tells you how much of your operating costs are attributed to training and development. You can also compare it to the HR operating budget or human capital cost. This gives a much better perspective of costs.
To calculate, take the total cost of training and development and divide it by the overall operating cost. Multiply the result by 100 to get the percentage.
Training Spend Rate = ( total training spend / total operating cost) x 100
Training Participation Rate
Do you know how many people are actually taking the trainings your team is making available? You probably know how many people are participating in the mandatory trainings like harassment in the workplace. But what about the self-service online trainings that are housed in the LMS? The training participation rate will tell you if it’s worth paying for that content and the LMS fees. This metric may also indicate your training programs need better marketing.
To calculate, take the total number of employees who participated in a training and divide it by the number of employees who were eligible for the training. Then multiply the result by 100 to get the percentage.
Training Participation Rate = (# of employees took training / # of employees eligible) x 100