Many company leaders think that measuring the results of their company training will give them information that is "nice to know." If that is what you have been thinking, I would like to challenge you in this article. Measuring what is happening with your company training can empower you and improve your profits and processes in immense ways that will astound you.
A case study that proves the point.
When my training company was analyzing training results for a restaurant chain, we looked at the profits of individual restaurants in two categories. The first was restaurants where 50 percent or less of employees were taking the required online training. The second category consisted of restaurants where 80 percent or more of employees were taking the required online training. Our analysis showed that in the second group, the annual growth rate of business was four percent greater than the growth rate at restaurants in the first.
What does this mean?
Since the average restaurant in the chain was doing an average of $2 million annually, that meant that restaurants where at least 80 percent of employees who were being trained were doing $80,000 more in business every year. Even when we subtracted the $20,000 cost of the food that was being prepared and sold from that overall amount, we determined that each training-invested location was still doing $60,000 more business every year than locations that were less invested in training. Of course, growth compounds every year. When you increase training, there can be a correlation to increased profit.
In the restaurant chain we analyzed, there were 1,200 locations where 50 percent or fewer of the employees were completing the training. This means that if each of those locations raised its training percentage to 80 percent, they had the opportunity to contribute an additional $96 million to franchise-wide sales. That is an astounding result of simply getting more employees to take training that was already available. Put in dollar terms, the franchisor lost $5.7 million in royalties and close to $2 million in national fund dollars. The franchisees in total lost $69 million after food cost and franchise fees.
My question to you is, would you be willing to leave $96 million on the table every year, just by failing to get at least 80 percent of all employees to take the training you have already paid to develop and provide? Or if you don't have great training, what would you be willing to invest to improve...