Key performance question this indicator helps to answer
How effective is our training in driving business results?
‘Training’ is often perceived as a ‘soft’ measure and, as such, it is argued that it is difficult to quantify the ‘hard’ (especially financial) benefits to the enterprise. Unfortunately, many from a Human Resources background, or function, continually make this argument.
However, in recent years we have seen a growing library of best practices that do indeed trace how training expenditure impacts financial performance; put another way, it provides a measure of the return on investment (ROI) on the training dollar.