Measuring the impact of procurement training is crucial for procurement team leaders, as it allows them to assess the effectiveness of their training programs and determine the return on investment. By evaluating the results of procurement training, leaders can identify areas for improvement. Moreover, doing so can facilitate a team or a company’s processes of making informed decisions about future training initiatives.
Procurement training programs play a crucial role in the development and growth of procurement professionals. These programs provide individuals with the skills and knowledge needed to succeed in the field. Programs and courses may range from essential purchasing and negotiation techniques to advanced sourcing strategies and risk management. However, not all procurement training programs are created equal. As such, it is vital to assess the benefits of each program to determine which one is right for you.
NLPA lined up a few reasons why it’s crucial to assess the benefits of procurement training programs:
- Meets individual needs: Each procurement professional has different areas of strength and weakness. Assessing the benefits of a training program will help you determine if the program addresses your individual needs and can help you develop the skills you need to succeed.
- Return on investment: Procurement training programs can be expensive, and it’s important to determine if the investment is worth the cost. Assessing the benefits of a program can help you determine if the program will provide a positive return on investment, both in terms of personal and professional growth.
- Relevance to the current market: The procurement field is constantly evolving, and it’s important to ensure that your chosen training program is relevant to the current market. Assessing the benefits of a program can help you determine if the program provides up-to-date information and addresses current industry trends.
- Quality of instructors: The quality of the instructors is a critical factor in the success of a procurement training program. Assessing the benefits of a program can help you determine if the instructors are knowledgeable and experienced in the field.
Read more on NLPA’s Course on Measuring The Impact of Procurement Training
According to a report from the Association for Talent Development (ATD), US companies spent an average of $1,252 per employee on training and development in 2020. This represents a 5% increase from the previous year and shows that companies are continuing to invest in the development of their employees.
The report also found that the financial services and insurance industries had the highest average training investment per employee, while the retail trade and wholesale trade industries had the lowest.
How Effective is the Training?
Ways that a procurement team leader goes about assessing the effectiveness of Procurement training while measuring its impact:
Employee surveys are a great way to gather feedback on the procurement training program. Team leaders can use these surveys to gather information on the employees’ perceptions of the training, the usefulness of the information they learned, and the level of engagement they experienced. This data can provide valuable insights into the strengths and weaknesses of the training program and help leaders make informed decisions about future training initiatives.
Key Performance Indicators (KPIs)
Procurement team leaders can measure the impact of procurement training by tracking key performance indicators (KPIs) such as cost savings, supplier performance, and contract compliance. This data can provide a clear picture of the impact the training has had on procurement processes, and help leaders determine the return on investment.
Observations are a valuable tool for measuring the impact of procurement training. Procurement team leaders can observe employees during procurement activities to see if they are applying the skills and knowledge they learned during the training. This can provide valuable insights into the effectiveness of the training program and help leaders identify areas for improvement.
Post-training assessments can be used to measure the impact of procurement training. Proactive teams do this by evaluating the knowledge and skills of employees after the training program. These assessments can be in the form of quizzes, exams, or practical exercises, and they can provide a clear picture of the effectiveness of the training program.
Feedback from Stakeholders
Procurement team leaders can gather feedback from stakeholders such as suppliers and customers to gauge the impact of procurement training. This feedback can provide valuable insights into the effectiveness of the training program. In addition, they help leaders make informed decisions about future training initiatives.
Employee retention is another key indicator of the impact of procurement training. By tracking the number of employees who leave the organization after the training program, procurement team leaders can gauge training effectiveness. Looking at a company’s employee retention numbers can also determine the return on investment in training programs.
In conclusion, measuring the impact of procurement training is crucial for procurement team leaders. A combination of employee surveys, KPIs, observations, post-training assessments, feedback from stakeholders, and employee retention may be employed. They can help leaders assess the effectiveness of their training programs and determine the return on investment.
As we move forward in 2023, begin identifying areas for improvement to make informed decisions about future training initiatives. These are the first steps in ensuring that your procurement teams continue to grow and develop their skills and knowledge.
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