How to conduct training need analysis

How to Conduct a Training Needs Analysis

Employers can conduct a needs analysis by the following steps.

Step 1: Determine the critical performance gaps

Determine the specific performance gap areas where the critical changes are needed.  For this purpose we need to benchmark against the industry bests.

The KPI would be a good measure for comparative purposes.

The return on equity model which shows the ultimate goals of the business could be used for this purpose.

For in depth analysis, the analyst could examine and compare the cost volume profit model and key functional performance against the best in the industry.

Examples of these performance areas are:

1. Improve customers’ growth and retention.
2. Improve employee productivity and retention
3. Improve the speed at which warehouse employees fill orders.
4. Improve on the asset management of the business

Step 2: Identify areas of performance problems and issues

The critical management areas are measured for its true performance through input output analysis.  In addition, graphs should be used to further illustrate the dynamic performance movement.

We would identify the critical areas through the simple Pareto and sensitivity analysis

Step 3: Identify and focus on people problems and issues

We would identify performance problems caused by people or staff through productivity ratios and efficiencies.

Wrong or poor practices, systems or policies may not be the responsibility of the staff.

We need to pin point person or group of persons responsible after which a competency profile would be conducted.

Step 4: Suggest solutions and improvement changes

There are two groups of performance problems and issues.  One is caused by the labour, staff and people and the second groups are those that are caused by other factors.

Changes could be due to problems in the management systems, communication and authority or a combination or mix of all.

Training is only a relevant solution that affects competency gaps.

Management training is needed if the identified lacks of performance areas are caused by poor management skills and knowledge.

The technical incompetency of a worker is easily identified by matching against the best practices skills and knowledge of a standard worker in the industry.

Step 5: Design suitable processes and models

Top management must agree and approve on the key processes, strategies and models to be used by the business.

The models adopted and integrated are normally the best practices in the industry.

These models should be properly defined to enable simulations to be exercised for the purpose of estimating the results or the impact of change.

Step 6: Profile the identified workers and determine the competency gaps.

Only workers in the critically weak performance areas would be profiled on three specific areas:

1. Knowing what to do; identify best practices in the industry on the relevant area.
2. Having the capability to do it; – by examining their past performance records and competency history.
3. Having the motivation to do it.- adequate information and authority and recognition.

The required set of competencies is drawn from the best industry worker.

The identified training which should also be in alignment with the chosen business model

In addition, these identified gaps shall be discussed and confirmed with the staff concern, his supervisors and the industry expert.

Step 7: Determine how to train

There are many approaches to training.  Of course the cheapest and most effective shall be chosen.

Step 8: Conduct a cost benefit analysis (ROI training)

At this point, employers need to consider the costs associated with a particular training method and the extent to which competencies can be combined into the same training activity.

Opportunity costs associated with training shall be taken into consideration.

On the benefit side, the analyst could use the planned business models to simulate the results.

Step 9: Plan for Training Evaluation

The only way to evaluate the effectiveness of training is to measure the performance results after training.

Micro KPI targets could be set in advance by both the trainees and bosses.  They may want to include these in the job description.

The process in summary:

1. To identify where in the organization, training is critically needed?
• Performance gaps against industry standards.
• True performance
2. Who among the staff needs it?
• Non-performers
• confirm with boss and further analysis through some watch.
• Duty and task analysis
3. What training are needed for the concern staff?
• against bench marks
• best practices
• competency gaps
4. How will the training be provided?  Alternative delivery costs
5. How much will it cost? and
6. How much the impact be on the business?
• simulated ROE
7. Calculate the ROI to justify training