Formula: Training Effectiveness Ratio (TER)
Training programs are only valuable if they lead to real improvements in performance. The Training Effectiveness Ratio (TER) measures how much employees improve after training. It helps trainers understand whether their sessions are making a real impact or need adjustments.
Formula:
TER = {Post-Training Performance Score - Pre-Training Performance Score} divided by {Pre-Training Performance Score} / times 100
Example: Sales Training Effectiveness
A company conducts a sales training program to improve closing rates among its team.
1. Before Training (Pre-Training Score)
Sales reps were closing 20 deals per month on average.
2. After Training (Post-Training Score):
One month after training, sales reps are closing 30 deals per month.
3. Calculate the Training Effectiveness Ratio (TER):
TER = {30 - 20}{20} / times 100
TER = {10}{20} / times 100 = 50%
This means the training led to a 50% improvement in sales performance.
Why This Matters:
✔ Quantifies Training Impact – Shows how much employees improved.
✔ Helps Justify Training Budgets – If TER is high, training is delivering ROI.
✔ Identifies Areas for Improvement – If TER is low, trainers can adjust content or methods.
Training should always lead to measurable growth. The higher the TER, the more effective the training!
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