WinningKPI - HR - KPI for Measuring of Learning and Development (L&D;) Investment per Employee posted in category HR KPI details: Details:
This indicator is for measuring the L&D; Investment per Employee in terms of monetary value. This is calculated by divided the total L&D; budget the HR department has by the total number of employees. Although this is only an average calculation, and really looks at the budget available per employee (not all employees use the same amount), the figure is highly used in L&D; practices; it can be used to give line managers a clear picture of how much their spending allowance is for L&D; per employee.
The HR department may not aim to either increase or lower this budget, as the fluctuation of it is highly dependent of other company factors (new operating systems in place that require training etc.). However, what is important is that the money spent on L&D; bring back value to the company. Therefore, HR may compare this KPI against Average Number of Training Hours per Employee, Ratio of High to Low Performance Employees etc.
The L&D; KPI can also be used in building the brand of the employer and give competitive advantage, as being an ‘employer of choice’ and attracting the best candidates involves offering plenty of L&D; opportunities.
Formula:
Total L&D; budget / Total number of employees
KPI Unit: money
KPI Time Frame: update annually
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
I work for the HR department and our company takes pride in increasing this KPI.
We recruit around 500 graduates every year, for our graduate programmes, and our L&D; budget per graduate is over $3000 per person.
Our executives have worked out that we get a 100% + return on our L&D; investment, as by the end of the first year, our graduates bring a high value to the company, sometimes resulting in high profits.
If the company wants to calculate average investment per all employees the figure is:
$250 0000 / 1200 =$2100 per employee (in a year period)
Not all employees are likely to receive the same amount of training, especially if they are highly specialized and have been in the company for a longer period.
Oana Boteanu | + | September 9, 2012 at 7:39 am
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