In our modern world of work, tracking and improving employee performance is an imperative that cannot be overstated. Key performance indicators (KPIs) can help with this process: KPIs are quantifiable measures that are used to track the progress toward achieving a specific goal or objective. KPIs help learning leaders evaluate the success of their training initiatives and prove the impact of training on the business. However, tracking KPIs requires a strategic and structured approach. In this article, we’ll review a five-step approach to KPI management that can lead to enhanced employee performance and organizational success.
How to Measure KPIs for Employee Training Success
Step No.1: Clarify expectations and KPIs.
The initial (and most critical) step to using KPIs in training measurement is to identify and define the metrics you want to track and evaluate. This foundational step aligns training with specific business goals and highlights the specific metrics to track and measure to prove training’s success. This can give learning leaders direction on how to design and deliver the training, and what skills to focus on to achieve business objectives and goals.
If learning leaders don’t identify specific KPIs to track prior to delivering the training, their learning and development (L&D) initiatives will most likely misalign with business objectives and goals. When identifying KPIs to measure, L&D leaders must ensure they are:
- Relevant: KPIs should provide meaningful insights to the specific business goals and objectives training needs to target.
- Quantifiable: Each KPI must be quantifiable, offering a clear, objective method to gauge performance. This measurability is vital to tracking progress and identifying areas for improvement.
- Clearly communicated: KPIs should be understood to everyone involved, from top-level executives to front-line employees. This ensures that all team members are aligned and working toward the same objectives.
- Evaluated regularly: KPIs should be reviewed and assessed at suitable intervals — whether weekly, monthly, or quarterly — to enable timely actions and adjustments.
Step No. 2: Analyze the root cause.
The second step is to examine missed KPIs and any potential causes for not meeting business goals. It’s essential for learning leaders to look beyond surface-level symptoms and instead, delve into underlying issues. For this process, learning leaders should gather and analyze data from various sources to identify patterns and trends that could uncover root causes. For instance, if sales reps are consistently unable to achieve the business’s goal of increased customer engagement, the root cause analysis could reveal factors such as market changes, internal process inefficiencies or even issues with product quality. This can give learning leaders the insight to take corrective action.
After learning leaders identify the confounding variables, they must validate these findings. This can include further data analysis, pilot studies or seeking feedback from stakeholders in other departments. The goal is to ensure whether the identified causes contribute to missed KPIs and how learning leaders can plan for this.
Step No. 3: Seek constructive feedback.
The third step is to gain feedback from company stakeholders. This can ensure that KPIs are hitting the skills the business needs to succeed, and that leadership is invested. To get the right feedback, learning leaders must ask the right questions. Ensure the questions are open-ended and allow leaders to share their insights.
Learning leaders can then use the feedback to create an actionable plan on how to achieve company objectives. L&D should collaborate with stakeholders on how to use training to meet these KPIs, and whether learning leaders are targeting KPIs that align with business strategy.
Step No. 4: Develop an action plan.
To create an action plan, learning leaders must set specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals should strategically align with targeted KPIs, and address solutions for potential root causes. For instance, if market changes is a root cause for missed sales goals, learning leaders can shift their training initiatives to match modern customer concerns and expectations.
These goals should include clear steps on how to influence a behavior change and help employees meet these KPIs. These steps should be detailed, outlining how these goals will be met, who will develop solutions for meeting these goals and the timeframe in which these goals must be met. Assigning responsibility is crucial to ensuring accountability. L&D must share this plan with managers so they can play their role in improving employee performance.
Lastly, a successful action plan should contain: resource allocation, a tracking system and flexibility. Realistic resources can ensure that the action plan is achievable. Tracking systems allow you to continuously track and evaluate the plan’s effectiveness. And flexibility enables you to be agile and adjust the plan as needed. An effective action plan is all in the preparation — if the plan is solid, the execution is flawless.
Step No. 5: Monitor progress and adjust as needed.
The fifth and final step in the process of improving KPIs is to monitor progress and make adjustments as needed. This step is essential for ensuring that the action plan is driving the desired behavior change and that the KPIs translate to business success. It’s critical that L&D leaders continuously monitor the plan in real-time for sustained performance.
Learning leaders should regularly review the defined KPIs and the specific goals set in the action plan. This review process should be systematic and frequent enough to provide timely insights into how well employees are meeting these targets. Utilizing performance dashboards or regular reporting systems can keep track of progress and identify areas where performance may be lagging.
Regular communication is also vital. All stakeholders should be informed about the progress, challenges and changes to ensure transparency and trust. This can also help build a culture of accountability and continuous improvement, where everyone is focused on the collective goal of enhancing employee performance.
The key to successfully meeting these metrics is to this as a continuous process. Managing set KPIs requires regular reflection, learning and agility. L&D professionals that embrace this approach can expect not only to see improvements in meeting KPIs but also to experience a positive shift in employee performance and business goals.
