Value of training and people development

EXTERNAL
Value of Training and People Development
25th November 2020

2© 2020 SAP SE or an SAP affiliate company. All rights reserved.
▪ Why is training and people development important for business success?
▪ What are the benefits?
▪ How to measure the benefits?
▪ Summary and next steps
▪ More resources
Agenda

Please indicate your background
▪ Learning & Development / Human Resources
▪ Information Technology
▪ SAP Partner
▪ Student
▪ Other area e.g. Marketing, Controlling
Poll

Why is training and people development
important for business success?

4 Reasons why it is important to look at the Value of Learning
 Decision Support
 Comparing
alternatives
 Summative
Evaluation
 Efficient and
effective use of
ressources
Strategy &
Steering
Learner Focus
 Data needed for
personalization &
augmentation
 Predictions,
recomendations,
chatbots
Continous
Improvement
 Monitoring to adapt
& improve
Positioning
 KPIs/ Numbers
needed as
management thinks
in numbers &
money

What is the benefit of Learning & Development in general
Better Innovation
Adoption
of processes, tools,
business models
Adapt to new
workforce demands
due to market
changes
Increased
employee
engagement,
satisfaction &
retention
Quality
Improvement
- Competent people
make less errors
Higher Productivity
& Performance of
individuals, teams
organizations
Better CX
via competent
employees

Hard Facts about the Impact of Learning in Successful
Organizations
Organizations mature in upskilling achieve the
following outcomes compared to less mature:
60% stronger corporate culture and employee
engagement vs 23%
43% higher workforce productivity vs 17%
37% greater business growth vs 15%
51% greater innovation and accelerated digital
transformation vs 15%
35% reducing skill gaps and mismatches vs 10%
Even a small increase in the number of hours of
training — as little as 9 hrs training/person —
increases an enterprise system project's
success rate from 50% to more than 80%. 2
Top-performing organizations simply spend
more time on learning and training activities,
and involve more stakeholders in learning
programs.4
1: PWC CEO Survey 2020: https://www.pwc.com/ceosurvey#cs23DataExplorer
2: May 2013, IDC #241126, Volume: 1 IT Education and Certification: Customer Needs and Strategies
3: McKinsey, https://www.mckinsey.com/business-functions/organization/our-insights/the-essential-components-of-a-successful-l-and-d-strategy
4:– “Building t: he Learning Business Case: The ROI of a Next-Generation LMS,” SAP SuccessFactors, September 2015
An investment as low as US$1,500 per
employee in training increases proﬁt
margins by 24%, on average.4
..companies3 that invest in developing leaders during
transformations are 2.4 times more likely to hit
their performance targets

Scientific meta-analysis: Informal learning activities lead to 32% higher performance
Cerasoli, C. P., Alliger, G. M., Donsbach, J. S., Mathieu, J. E., Tannenbaum, S. I. & Orvis, K. A. (2018).
Antecedents and outcomes of informal learning behaviors: A meta-analysis. Journal of Business and
Psychology, 33(2)
Scientific meta-analysis: Formal training leads to 23% higher job performance
Arthur, W., JR., Bennett, W., JR., Edens, P. S. & Bell, S. T. (2003). Effectiveness of training in organizations: A
meta-analysis of design and evaluation features. Journal of Applied Psychology, 88(2)
Scientific research shows clear value of Learning & Development

Top 10 Global Work Preferences
→ employees rate Learning
over Job Security!
Source:
http://www3.weforum.org/docs/WEF_Towards_a_Reskilling_Revolution.pdf

Skill demands change rapidly according to World Economic Forum
Source: http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf
On average, employers expect to offer reskilling and upskilling to just over 70% of their employees by 2025.

Global Sales Challenger Program improves
business KPIs
Examples from SAP internally show different value KPIs
Social Selling Training for Channel Managers
increases social reach

People Analytics example SAP internal focus on new managers

14© 2020 SAP SE or an SAP affiliate company. All rights reserved. Source: Survey by ECLF https://www.linkedin.com/company/eclf/
New Challenges in the Covid times for Corporate Learning

Adapting focus on what value means in the time of coronavirus (McKinsey, 2020)
Source: https://www.mckinsey.com/business-functions/mckinsey-accelerate/our-insights/adapting-workplace-
learning-in-the-time-of-coronavirus
".... what is clearly different today is
that keeping people safe and reducing
risk has, for now, displaced cost as the
key driver behind digital learning."

What is the value of learning for you and your
organization? Any concrete evidence?
▪ Post the answer in the Chat
Chat

Evaluating the impact of learning
is the key priority in Learning &
Development
Source: https://learning.linkedin.com/content/dam/me/learning/resources/pdfs/LinkedIn-Learning-2020-Workplace-Learning-Report.pdf

19© 2020 SAP SE or an SAP affiliate company. All rights reserved. https://go.brandonhall.com/l/8262/2020-10-21/b7r7zb Measuring Learning’s Impact (Research Summary)
Why? Current Reasons of Learning Measurement

20© 2020 SAP SE or an SAP affiliate company. All rights reserved. Source: https://learning.linkedin.com/content/dam/me/learning/resources/pdfs/LinkedIn-Learning-2020-Workplace-Learning-Report.pdf
What?
According to LinkedIn
Workplace Learning
Report, still basics &
input is measured

Kirkpatricks 4 Levels – see further infos here
Reaction - degree to which participants find the training favorable, engaging and relevant to their jobs
Learning - degree to which participants acquire intended knowledge, skills, attitude, confidence and commitment based on
participation in training
Behavior - degree to which participants apply what they learned during training when they are back on the job
Results - The degree to which targeted outcomes occur as a result of the training and the support and accountability package
Jack J. Phillips ROI Model – see see further infos here
Process Model, empiric approach
How? Some helpful frameworks to measure the value of learning
Oldschool, but a good start

High performance measurement impact model by brandon Hall.com
Some helpful frameworks to measure the value of learning, cont.

Learning Analytics has a
high maturity at academia
Grid can be used for self-
assessment or inspiration
for learning measurement
Some helpful frameworks to measure the value of learning, cont.
high performance measurement impact model

Where do you stand with Learning Analytics?
• Input Data
• Reaction/ Satisfaction
• Learning
• Behavior
• Results/ Impact
• ROI
Poll

• Focus on decision support instead of justification
• Move from reporting to analytics
• Fokus on measuring output & process instead only Input
• Look at ROE – Return on Expectations – not only ROI
• Measure Impact via KPIs in an agile world
Summary & PoV based on my experience

Register for the Wecasts or check out whitepapers &
assets under https://www.sap.com/valueofsaptraining

Value of training and people development

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