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Maximizing the ROI of soft skills training.
My attention was turned to the ROI of language training (one of the soft skills, namely, communication) when we were asked to give testimony in a court case. The case was that of an employee who was let go by their employer because the employee’s level of English was not sufficient for the position occupied at the time, in the company. Now, at first glance, this might seem quite straightforward. But it is not. It opens the entire spectrum of soft skills measurement.
Namely, how can someone say that the English level of someone else is not sufficient to perform a task? And more precisely, when does the English level of that person start to become adequate, and when does it become optimal? The easy answer to that is that they must be bilingual. But, when you are training existing employees to perform a new task, and you are paying for that training, it becomes very interesting to figure out when the training can be stopped because the employee is able to perform the task appropriately.
In this situation, the relatively easy aspect of this is to measure the level of English (or any language, for that matter). As is the case of various language schools, we have tests. There are tests out there that do a pretty good job. So, measurement is possible. Testing does offer some challenges. We have a whole article on this subject (read). But it is a lot easier than the other aspect which is to measure the efficiency improvement in a given task when training is given to improve the soft skills needed to perform that task.
To get a little more hands-on information, I asked my training contacts on LinkedIn for their opinions, and one was particularly helpful with her insight. Amanda Herder, Manager of Training at Westmont Hospitality Group, shared some of the things that they do in their company, which is in the hospitality industry. I think, from the customer perspective (I have never worked in this industry, but I am a customer), one thinks that soft skills are essential for dealing with customers and daily operations, given the number of people required to run such operations.
Here is what she said: “While those areas (soft skills) can be hard to measure, they are measurable in the hotel/hospitality industry if you gather the right feedback from the right audience. Here are a few things we focus on:
Observation and Feedback: Managers observe in-the-moment interactions and provide feedback.
Guest Satisfaction Surveys: We include questions on soft skills on the surveys or Guest Relations calls.
Peer Reviews: We ask colleagues to provide feedback when appropriate and necessary.
360-Degree Feedback: We gather input from various sources, not just surveys but online reviews, and those mentioned above.
Performance Appraisals: We assess soft skills during evaluations. We conduct 30-, 60-, 90-day, 6-month, and 1-year assessments for all new General Managers.
Training Programs: We offer workshops for skill enhancement for employees at certain levels.
Employee Surveys: We collect feedback on communication and management.
External Certifications: We encourage staff to pursue relevant qualifications and offer gamification through our LMS for all training that is outside of the normal required training and give badges for completion.
Objective Metrics: We define and track key performance indicators and utilize SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound).
Those objectives can be tied to money as they produce higher occupancy, less turnover, and fewer intervention fees from guests complaining up the chain to the Guest Relations team who then charge our hotels a set fee.”
A few things need to be unpacked here. The main idea is to find measurable performance indicators regardless of where they come from—things that can be measured. For example, if communication is one of the goals that is to be measured, well, just saying that the communication is improved is something that cannot be measured. But, involved in communications are things like:
Meetings; better communication will play on meeting frequency and duration.
Alignment; better communication will align people with the company’s values and overall objectives. Better communication produces fewer errors of that type. Errors can be measured.
Problems: better communication also helps in reducing the time it takes for a problem to be resolved. That length of time can be measured.
Engagement: better communication will increase employees’ sense of belonging which should be represented in lower turnover. But turnover can be a product of many other factors. Hence this one is tricky.
Customer satisfaction: better communication can lead to an increase in customer satisfaction. That can be measured: how many customers have lodged complaints over a given period.
Conflict: better communication should decrease conflicts within the organization. The number of conflicts is measurable.
With these measurables in place, we have the starting position. Now we have to set goals to attain. Once the goals are identified for the starting position, usually the objectives are to improve those numbers. But by how much? A good source of information might be the training company. They have done this previously; hence, they may have information on what is realistic to attain. Also, improvement does not usually move along a straight line. There is a point of diminishing returns. For example, let’s say that for the summer period, you had 100 customer complaints. And your goal is to provide training to get that number down. It is probably pretty realistic as a goal and as an investment to think that number could be decreased to 50. But to get that number to less than 10 might involve many times more the amount of money required to get from 100 to 50. It then becomes an internal exercise to calculate if this is worth the extra investment. Taking everything into account, you come up with a target number. That becomes your goal.
With the starting point and the goal established, the training can start. But, to be efficient, the training must be of good quality and engaging. Why is this important for the ROI of training? Well, if you pay for poor training or if the intended learner does not assist or retain what is being presented, the goal will not be attained. Two main options can be considered for the training; do it internally or go with an outside provider.
If you go with an external provider, then doing your due diligence goes without saying. Things like the training company’s experience, trainer’s profile, references, recommendations, etc. are great places to start. But doing it internally is often a good option to consider if:
Cost is an issue; It could be cheaper to train a trainer than to train a whole team;
Using a learning management system, you could build the training, or use a partner to help in the process;
You have the appropriate resources to do great training internally;
You feel that retention would be improved if a co-worker provides the training;
You will have to train many people over the year on the same subject and the subject is an evolving one.
The other element is for training to train your people. The most fundamental aspect of this is for your employees to be able to be present for the training. If they are not there, they can’t learn. This is easier said than done as often companies are very conscientious of this and organize the training during company hours, but then meetings, deadlines, and other “urgent” matters are not adapted accordingly. This leads to learners being present, when possible, but not being committed 100%. We have had ongoing training with some companies where the pressure on the employees forces them to take calls, answer emails, etc. during their training time. Not the best set-up to learn.
The other aspect is for the training to be engaging. Of course, the trainer will play a significant role in this, but so is the training itself. An example from our field; you could have great training with a very qualified teacher, but giving an English class on golf. Now, if you love golf, this is for you, but if you have no interest in golf, well, a lot will be lost. At Langage d’ici, we try, as soon as possible, to use work-related subjects. This serves many purposes, one of which is to get students engaged and interested.
Another motivational element to have the same students participate in the same groups. This is particularly important when the training is over a long period. Bonds are created, people motivate each other, explain things that might have been missed, and hold each other accountable.
What about breaks and vacations? This is an important aspect of the continuity of training, especially for long-term training. Will your company take a break for the summer period? Make sure the training schedule is known so employees are ready to start up again. It is a lot better than not having this planned, waiting to get replies from the employees and the training company, having to possibly change the schedule because of conflicts, etc. In this process, some students might drop out because of a loss of interest or conflict with the rest of their activities.
Measure attendance. At Langage d’ici, we send attendance sheets every month. This document serves many objectives, one of the main ones being to validate employee participation. A particular employee was not present and their absence is not associated with vacation time? Make an appointment with the employee and the supervisor to see what is going on. Too much work? The schedule is an issue? Conflicting meetings scheduled? Or other? You will be able to act fast and keep the interest of that learner by resolving the issue.
Online or onsite training? I have seen on LinkedIn a poll asking if onsite training was back. Many comments thought that the demand was higher now. But I answered that it was not clear-cut. Online training can be better suited for many companies that having:
Hybrid work environment;
Remote workers;
Various offices;
Off-site workers (consultants doing work at the client’s place of business);
The time of the training (early morning or late afternoon);
Etc.
With all of these considerations, you should be able to put all the chances on your side to meet your training objectives. But, now you have to maintain, if not improve, that training over time. Audits are thus important—internal or external ones. And sometimes it is not the training that is at fault. You trained your employees on a new software, but its implementation took longer than anticipated. If you do not get to practice what you learned, you will forget it. If this is a problem, various strategies can be considered to help preserve what you paid for.
The same is true for a new skill that was learned and used, but over time, maybe some of the tools that were given are forgotten. To keep that training fresh, it is very helpful to plan for refresher sessions over a certain time; 3, 6, and 12 months. Doing both would be ideal; refresh and obtain feedback from the trainer. Your employees tried some of the methods that were taught but without the desired result? Feedback from the trainer might help focus the proper attention where it needs to be.
I think that with these considerations, you will be able to maximize the ROI of your training, soft skills, etc.
What do you think? Did I forget important elements?
If you have questions or comments, feel free to contact me.