The Learning MatchMaker

Scorecards to track costs and metrics of Training

These scorecards are used by a global pharmaceutical company reseached by TLMM online.  We would like to share this information to you.

Their Metrics (their goals are listed for the year):

?         Total Voluntary Turnover (goal: <15%)

     Retention of High Performers (goal: 97%)

?         Promotions (goal: 25% higher than prior year)

?         Cost per Learning Activity (goal: <$7.00 per activity)

?         Expense Reduction (goal: reduce expenses by 1.5%)

?         Infrastructure Costs (technology, facilities) (goal: <45% of training budget)

?         Total Training Spending as % of Company Revenue (goal: <.5%)

?         Cost for New Hire Training (goal: <$250 per new hire)

Their Mechanisms:

At the beginning of the fiscal year, these metrics are reviewed by a group of executives and modified, as appropriate, based on budgets and financial planning. In addition, the group looks at past years? data to understand the historical costs and metrics to determine achievable goals.

Then, each month, a member of the L&D group gathers data from the company's LMS system to calculate the metrics and produce a report in the form of a scorecard. The typical green/yellow/red color codes are used to identify successes and areas requiring attention.

The company's director of L&D stated that the scorecard has been an invaluable tool in helping stakeholders understand the costs associated with specific initiatives, and, as a result, the team has been able to reduce costs significantly in certain areas. As one example, the cost for new hire training at one time exceeded $300 per learner; now the costs are under $250 per learner. Monthly reporting ensures that the L&D organization continues to keep a watchful eye on spending and take prompt action on any problem areas.

This is something every training executive should look at seriously.