L&D Strategies

How to Track Employee Training & Measure ROI

Androniki Koumadoraki
7 min

You don’t run your business on rough estimations and hinges, so why should you do so with employee training? Besides, employee learning and development is a business investment on its own – it’s closely tied to your business KPIs and goals, necessitating a portion of your budget and offering a measurable ROI. As such, it deserves your full attention and close monitoring.

In this post, we’ll explore all the benefits of tracking employee training, what data you should look for, and the best tools for the job – along with the pros and cons of each option. Let’s dive in!

Employee training has numerous benefits for your employees and your business. Employees are happier, more productive, stay longer. With a competent and loyal workforce, your business can thrive. In order to reap these benefits, though, you have to keep tabs on your employee training programs to ensure they’re meeting your expectations. Here’s why:

1. Measure Training ROI

You probably know how much money you’ve spent to deploy employee training, but do you know how much you’ve made as a result? Training ROI is a complex thing to measure, and maybe you won’t be able to measure it with 100% accuracy. However, the more data sources you look into, the better you will be able to evaluate it (more on that in a bit!).

Knowing your training ROI means you’ll be able to manage your budget more efficiently and reallocate your resources as needed. Not only that, but for L&D professionals, proving ROI is essential to prove the value of their work and to secure or even increase their training budget.

2. Address Knowledge & Skills Gaps

Tracking employee training means you will monitor how employees perfom both during the course and on the job. You’ll also get to speak with them directly and hear their thoughts about your training program and the extent to which it has helped them.

This will allow you to identify knowledge and skills gaps and address them effectively with additional learning material, mentoring, or on-the-job training, therefore reinforcing the learning objectives of the course.

3. Comply With Regulations

Compliance and detailed record-keeping go hand in hand. You need to know at any time that all employees have successfully completed their compliance training, when a certificate is due to expire, and that your company overall is on track with the compliance regulations of your industry.

If you’re in a heavily regulated industry, you understand how important compliance is and that it goes beyond fines and penalties. Compliance often involves health & safety, and not abiding or being aware of regulations and best practices can jeopardize the well-being of your employees and the environment.

4. Create More Effective Training Programs

Tracking employee training is multi-faceted – it involves tracking learner performance, evaluating employee performance after the training, getting manager and employee feedback, and more.

This training data and feedback from diverse sources will give you an accurate picture of the effectiveness of your program but also of what’s lacking and what needs to be improved – this is key to designing better training programs in the future and achieving your respective goals.

There is a vast pool of information waiting for you, provided you’re up for some digging! Below we share the most common and reliable sources of data to track employee training:

Learning Metrics

Leaning metrics refer to metrics that measure course effectiveness and knowledge retention.

Employee metrics

Employee training has been closely associated with pivotal employee metrics, namely:

These metrics are the results of multiple factors. It’s hard to identify the degree to which they can be safely attributed to employee training. However, if employees refer to their training experience positively in your employee satisfaction survey, it’s safe to say it has played a significant part.

Business Impact

The most tangible results are expressed in business metrics and KPIs. At this point, it’s worth noting that it’s essential to define your desirable KPIs before deploying training. And it’s almost impossible not to, since usually a business deploys training in order to improve specific business results. Indicatively, some KPIs to watch are:

You have more than one option to track and record employee training data with tracking software. Here, we present you with 4 different tools, each one addressing different business needs and training delivery methods:

Learning Management System (LMS)

A Learning Management System is hands-down the most efficient tool to deliver and track employee training, from new employee onboarding to upskilling and compliance training. An LMS enables you to offer learners diverse training content formats (eBooks, PDFs, videos, quizzes) and supports several training delivery methods (synchronous, asynchronous, blended, mobile).

Most LMSs offer built-in report tools that help you stay on top of your elearning initiatives without you having to do excessive manual work. You can see how individual employees, departments, or entire branches perform in a few seconds, with just a few clicks.

LMSs have several functionalities that allow you to monitor several metrics, even in real-time, like training completion rates, individual and average course scores, number of certificates issued, time spent on each learning activity, quiz scores, and more.

Most LMSs have filters so you can monitor only the data you need, and can be scheduled for automatic delivery. Your training records are kept for life in one place, together with all your training material. Make sure you specifically ask your LMS vendor about their reporting system, as some LMSs tend to be either overly complex or offer superficial metrics only, like course completion rates.

Overall, an LMS is the most complete training solution, offering multiple options to monitor learner performance through:

Pros

Cons

Need more information about how to pick the right LMS for your business? Download our LMS Guide now, and you’ll learn practical tips to cut through the noise and choose the best LMS for your needs!

Training Management System (TMS)

A Training Management System is a platform that helps businesses organize and streamline instructor-led training and VILT. A TMS undertakes all “housekeeping” tasks, like course scheduling, logistics (for on-site training sessions), learner registration, reminder emails, budgeting planning & forecasting, and, of course, detailed reporting.

Keep in mind that, as opposed to an LMS, Training Management Software doesn’t always have content creation or training delivery capabilities. Therefore, it’s a good option if you implement instructor-led training and need a tool to handle administrative tasks.

Pros

Cons

Employee Training Tracking Software

Another solution to track employee training progress is to use specialized training tracking software. Employee training trackers specialize in monitoring training and help with admin tasks, like training assignments, documentation, reminder emails, etc.

Pros

Cons

Google Sheets

This zero-cost solution can serve as a training log for small companies who are offering few on-site or online training courses or when the pricing of other tracking tools is off-limits for your budget. In such cases, good old Google Sheets or Excel will do the job just fine.

Pros

Cons

When it comes to employee training, it’s not a question of whether to track it but how. If you don’t want to juggle between tools, a Learning Management System is an integrated, cloud-based solution to streamline, deliver, and track your training programs.

Our platform, LearnWords, is a user-friendly LMS that supports interactive, engaging learning experiences and automates the most mundane admin tasks. Our platform features in-depth analytics and reports, advanced assessments, built-in surveys, and a certificate builder. Plan your next employee development or business initiative, knowing that your workforce can keep up! Start your 30-day free trial now!

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Androniki Koumadoraki
Androniki Koumadoraki

Androniki is a Content Writer at LearnWorlds sharing Instructional Design and marketing tips. With solid experience in B2B writing and technical translation, she is passionate about learning and spreading knowledge. She is also an aspiring yogi, a book nerd, and a talented transponster.