The metrics you choose must directly reflect the business outcomes you are trying to achieve (in collaboration with leadership).
Primary vs. Secondary Metrics
- Primary Metrics: Financial or strategic bottom-line outcomes that tie directly to financial performance (e.g., increased revenue, reduced operational costs, higher profit margins, improved employee retention). These are the focus for ROI calculation.
- Secondary Metrics: Supporting indicators that signal progress but don't directly show up on the balance sheet (e.g., customer satisfaction ratings, training completion rates, assessment scores). These help interpret why the primary metrics moved.
Sample Metrics by Evaluation Level
| Level | Metric Examples |
|---|---|
| Level 1 (Reaction) | Satisfaction ratings, course evaluation scores, "recommend" percentage. |
| Level 2 (Learning) | Quiz/exam scores, certification pass rates, pre- vs. post-test improvement. |
| Level 3 (Behavior) | Error rates, productivity stats, compliance adherence, sales call quality scores, 360-degree feedback after training. |
| Level 4 (Results) | Sales revenue increase, defect reduction, customer satisfaction/NPS improvement, reduction in customer complaints. |
| Level 5 (ROI) | Monetary value of results, total program costs, Net Benefit, ROI percentage. |
Data Collection Strategies
As Dr. Jack Phillips notes, "If it’s a measure that matters to the organization, then it’s there already."
- Leverage Existing Systems: Partner with owners of HRIS, CRM, and sales systems to access performance, retention, and financial data.
- Use Your LMS: Extract Level 1 and 2 data (completion rates, assessment scores) and user engagement analytics from your Learning Management System.
- Establish Baselines: Collect data before the training rollout (historical data, pre-tests) to measure change against a starting point.
- Post-Training Measurement: Capture the same metrics at defined intervals (3, 6, 12 months) after training.
- Isolate the Training Effect: Use control groups (if possible) or expert estimation to determine what percentage of the improvement is attributable to the training.