Measuring the business impact of learning was a key focus at the NetDimensions EMEA User conference in London in May. According to Fosway’s Learning and Talent Analytics: Practical Strategies to Drive Real Outcomes 2015 Study, 85% of companies say HR Analytics is a medium or high priority. In addition, research conducted by our partner companies LEO Learning and Watershed found that more than 85% of L&D professionals want to use analytics to improve their learning programs, while over 77% believe that it’s possible to demonstrate learning’s impact. However, L&D departments are still unsure about how to effectively measure the business impact of their learning activities.
Why measuring the business of learning is important
As budgets inside large organizations are decreasing, it’s becoming increasingly important for L&D to demonstrate its impact to top management. We now have the capabilities and the tools to actually analyze the connection between Learning and Development activities, and business performance. According to the Brandon Hall Group’s Learning Analytics 2017 Study, as much as 51.5% of organizations only analyze their learning program’s data annually or on an ad hoc basis. Only 14.4% of organizations continuously analyze their learning program’s data. Organizations need to move away from a snapshot analysis, which quickly becomes outdated over time, to a more sustainable process where big data is used strategically to make business decisions.
The technology to measure the business impact of learning is now available in the market but organizations are struggling to put in place a sustainable strategy to measure and then demonstrate that impact.
In the interview below, Piers Lea, Chief Strategy Officer at LEO Learning and Donald H Taylor, Chairman of the Learning and Performance Institute, talk about why measuring the business Impact of learning is important and why L&D managers should begin the journey now.