By using a learning management system (LMS), companies gain greater insight of employees’ learning behaviors. It not only facilitates the assessment of an e-learning plan and overall training approach but also helps with the identification of knowledge gaps and areas for improvement.
There is a wide range of LMS platforms that are equipped with different analytics and reporting features, but every company should find the one that meets the needs of its training programs and goals. While it may seem straightforward, choosing the right LMS without considering reporting metrics and KPIs can be challenging.
Many companies are simply not aware of what metrics to look for in their LMS platform. In fact, market research suggests that almost 90 percent of LMS buyers spend 70 percent more than they need to for features they never use. After outlining your LMS requirements, the next step is to determine the key performance indicators (KPIs) you need to track.
KPIs are quantitative measurements used to tracking the progress of your company as it endeavors to achieve objectives. This article focuses on KPIs that are directly linked with your training program and that you can automatically track and report on through an online training platform.
Here are the three most valuable KPIs that your LMS should track.
1. Training Completion and Attendance Rates
Training completion rate is a significant KPI to help determine the ROI of your training program. Calculating the number of individuals who have finished training, their average completion time and their average hourly salary will help you determine the cost of training.
Tracking this KPI can also support compliance. You should expect a completion rate of 100 percent for mandatory training. You can measure this KPI a couple of weeks before the deadline and, in the case of less than 100-percent completion, alert supervisors so they can ensure that their employees complete their training on time. Some LMS systems enable you to set up auto-reminders for compliance training, saving administrators time while increasing completion rates.
Attendance rate is a metric that is particularly beneficial for companies that use optional self-paced learning. By tracking attendance, you can gauge the popularity of your elective courses and plan training accordingly.
2. Learner Progress
Progress KPIs help organizations evaluate performance and can include activity pass/fail statistics, average test scores and average time to completion. If your learners are failing a course assessment, for example, it’s a good indicator that they are unable to understand the information and that you need to modify the training content accordingly.
These KPIs can also indicate some abnormalities. For instance, if the pass rate of an assessment drops suddenly, it may indicate that something in the training is askew and needs further investigation. Perhaps your newly appointed manager is sending a different message to employees, or your manufacturing department has implemented a new practice that no longer matches the corresponding training program and assessment.
On the other hand, learners who complete a training program more quickly than normal may not be finding it stimulating enough, which can result in disengagement. In that case, it may be necessary to develop a more interactive training module or a more challenging course.
You can also compare progress on compliance programs at different offices or work sites. Monitoring these data will help you identify sites where employees are showing a higher pass rate (apparently receiving better training) and sites where employees have lower assessment scores (possibly indicating inferior training). Then, you can work with the different sites to ensure that training is consistent throughout the organization.
3. Job Competence
Using job competence, you can track the training and performance of employees in a particular team or department. Job competencies are based on the particular roles employees play in a company. Job competence KPIs can include:
- Quality of work (for example, how often an employee’s work is rejected by his or her supervisor or needs to be redone)
- Individual efficiency (for example, group assessments and peer reviews of an employee’s performance)
- Performance in job-related courses
This KPI helps in identifying individuals who are eligible for promotion or cross-training and can help you identify which departments are more successful in their training and self-improvement activities.
A Final Word
With an LMS, you can conveniently track the effectiveness of your training program by automatically generating reports based on these KPIs. You can also use this information to evaluate training over time or from one department to another. All of these KPIs put valuable and actionable data at your fingertips, thereby increasing the impact of your training efforts.