Vestrics case study summaries

Program Evaluated: Tuition Assistance

Customer: Mutual of Omaha

Program Description: 

  • More than 830 employees participated in the company’s Tuition Reimbursement Plan (TRP)

Evaluation:

  • Examined the costs and benefits of the program
  • Compared the 693 program participants with non-participants
  • 3 years of data was analyzed for 693 full-time employees who took advantage of TRP

Findings:

  • TRP participants experienced more positive job mobility and were more likely to be retrained than non-participants
  • Not only was Mutual of Omaha increasing employees’ skill level, but they were building loyalty and retention
Program Evaluated: Call Center Supervisor Training

Customer: ACS – Xerox

Program Description:

  • Evidence showed that agent turnover was impacted by the effectiveness of the first line supervisors
  • Five different supervisor learning programs were deployed over two years

Evaluation:

  • Studied ACS’s turnover rate to find ways to reduce agent turnover
  • Analyzed 12,000 employees work from 55,000 records for the 23 largest call centers
  • Analysis measured the business impact of supervisor training

Findings:

  • Findings showed supervisors that took the training had an improvement in agent retention versus untrained supervisors
  • $4 million saved over the two years in agent turnover costs from the trained supervisor’s agents
Program Evaluated: Performance Management Process

Customer: VF Corporation

Program Description:

  • VF launched Maximizing Performance, a company-wide performance management process, to support their goal of building a culture of performance and to improve business results
  • VF believed having well prepared plans helped both managers and employees work towards clear and measurable goals, thus increasing corporate performance
  • VF believed the annual engagement survey was a key indicator of progress toward a high-performance culture

Evaluation:

  • Studied the deployment to two brands, a young, trendy brand and a legacy brand, with a long, rich history and were representative of the full portfolio of the companies 40+ brands
  • Phase One study focused on the development of performance plans, analyzing compliance (presence of a plan) and the quality of the plans
  • Phase Two (three months later) tracked the ongoing progress against performance plans
  • Phase Three (three months after Phase Two) focused on the annual performance appraisal process
  • Data was collected from these brands for salaried associates for a year and a half

Findings:

  • Phase One found participant confusion over the process and the need for further training and communication to clarify the important concepts in this new process
  • Phase Two found the prominent driver of compliance, quality of plans, and engagement was the presence of a manager who participated fully. Focusing on manager participation lead to increased employee engagement
  • Phase Three did not reveal links between Maximizing Performance and the business metrics evaluated. VF has speculated that the leading indicators of success are present (those seen in Phases One and Two), and it will take more time for impact to appear in the other metrics
  • VF has knowledge that engaged managers are critical to the development of a high-performance culture
Program Evaluated: Leadership Development

Customer: National Grid

Program Description:

  • National Grid recognized the need to engage leaders at all levels to help drive change throughout the organization and deployed a leadership development program Foundations of Leadership (FoL)

Evaluation:

  • FoL was launched to 3,000 first-level leaders
  • Two years into this five year deployment, Vestrics was hired to help determine the business impact of FoL

Findings:

  • Findings included leaders that are engaged in FoL have better performance ratings, reduction in turnover, and improved merit increases
  • This study allowed National Grid to take the findings and better optimize their program for the next and final three years of the program
Program Evaluated: Leadership Development

Customer: ConAgra Foods

Program Description:

  • ConAgra made a significant investment in leadership development called Foundations of Leadership (FoL) to positively impact business results and to build a solid leadership foundation for the future

Evaluation:

  • Vestrics studied the performance of 600 trained supervisors and 1,600 untrained supervisors at 65 US-based plants
  • Business impact was evaluated on a plant metrics and included productivity, safety, quality, plant employee turnover, and engagement
  • Individual metrics included supervisor attrition, promotion rates, and performance appraisal ratings

Findings:

  • The study revealed a positive program return on investment and a positive effect on plant and individual performance metrics
  • The study also revealed that for those participating in the program had higher retention rates compared to those not participating in the program
Program Evaluated: Mentoring Program

Customer: Sun Microsystems

Program Description:

  • The vision of Sun Microsystems was “The Network is the Computer” and their commitment is to encourage collaborative network participation through shared innovation, community development, and open source leadership
  • Sun Learning Services (SLS), the training organization within Sun Microsystems, initiated a company-wide mentoring program to help achieve this goal

Evaluation:

  • Over 900 mentors and mentees performance was compared to over 6,400 non-participants in the program over a period of seven years

Findings:

  • The mentoring program for both mentors and mentees vs. those not in the program showed increased employee retention, promotions, base salary
  • The increased retention among participants over non-participants translated into a net savings of $5.6 million dollars in turnover savings for the study period
Program Evaluated: Social Learning

Customer: Sun Microsystems

Program Description:

  • Sun was a thought leader in the evolution from “push” learning paradigms (learning 1.0) to a “pull” model (learning 2.0) which embraces a more informal and collaborative approach with user-created content at its core
  • In 2008 Sun Learning Services (SLS) launched a “pull” learning model Social Learning eXchange (SLX)

Evaluation:

  • This 10 month study focused on evaluating the business impact of SLX compared to instructor-led and web-based training
  • In this period nearly 11,000 active employees accessed SLX content at least once representing nearly 40 percent of Sun’s workforce

Findings:

  • During the study period
    • 3,982 unique SLX titles were created
    • 21,364 hours of content were viewed
    • There were 168,495 views (multiple views per day per user excluded)
  • Comparing development and delivery costs of traditional WBT to those associated with SLX, SLX provided Sun with a benefit-to-cost ratio of 75:1, representing a net benefit of $25.9 million
Program Evaluated: Sales Consultant Training

Customer: Chrysler LLC

Program Description:

  • Chrysler Academy designs and deploys Sales Consultant Curriculum (SCC) to over 3,000 US-based dealerships

Evaluation:

  • Data was collected from 33,867 sales consultants with 25 percent being wholly trained, 34 percent being partially trained, and 41 percent untrained
  • The study determined if the SCC has impact on
    • Sales volume
    • Sales satisfaction index score
    • Retention of sales consultants

Findings:

  • The business impact study revealed that sales volume increased by 1.3 new vehicles per month, per consultant, due to training
  • The retention rate for fully trained consultants was 98.9% versus 47.8% for untrained consultants
  • Turnover among new hires was dramatically lowered among the trained consultants vs. those partially trained or untrained
  • Consultants at the largest 40% of dealerships showed the biggest improvements across the metrics
  • Several other criteria pointed out possible optimizations based on region of the country, franchise type, and the prior training and certification history of the consultant
Program Evaluated: Sales Manager Training

Customer: Chrysler LLC

Program Description:

  • Chrysler Academy designs and deploys Sales Management Training (SMT) to over 3,000 US-based dealerships
  • The 2007 the SMT program consisted of foundational training plus two sales management courses designed to help managers improve the sales performance of their dealership

Evaluation:

  • Over half of the dealerships were studied where one or more than one manager completed
  • SMT
  • The study measured the impact of SMT on the following dealer-level business metrics
    • Dealership sales volume and gross profit
    • Inventory turn, gross profit per new car and gross productivity
    • Department net retention and dealer SSI

Findings:

  • The business impact results showed the sales department gross profit was 29% higher for dealerships with a trained manager than those without
  • Dealerships with a manger trained sold 1.48 more cars per month over the prior year, compared to a .01 increase over the same period for dealerships with no trained manager
  • The ROI for dealerships with a trained manager was 5,280%
  • A positive correlation exists between sales manager training and sales consultant retention, resulting in an average size dealership could expect to retain one additional consultant per year
Program Evaluated: Retail Branch Manager Training

Customer: US Bank

Program Description:

  • Branch managers enroll in a self-directed learning program known as The Branch Manager Toolbook
  • The program is designed to help branch managers and assistant branch managers be more effective in their leadership roles

Evaluation:

  • Two modules of the Toolbook were selected for this analysis that contain content related to improving
    • Consumer loans
    • Demand deposits
  • 511 branch managers who completed the modules were analyzed

Findings:

  • The analysis definitely demonstrated the favorable impact of the demand deposit training on the level of deposits in the trained managers relative to the untrained managers
  • The ROI from this impact was more than triple digits, far above the corporate investment threshold
  • Trained managers did not show an improvement in consumer loans due to the training
Program Evaluated: New Director Training

Customer: Sun Microsystems

Program Description:

  • Sun Learning Services (SLS) deployed New Director Training (NDT) to improve directors’ productivity and leadership skills

Evaluation:

  • A total number of students in the program over a five year period was 797, resulting in an overall cost of the program of more than $1.5 million
  • The impact of NDT training was measured with respect to improvements in
    • Performance which is reflected in performance reviews
    • Promotions
    • Base salary and merit pay
    • Retention

Findings:

  • Directors who completed NDT achieved an average salary 7.8% higher than those directors not in the program
  • On average, participants received merit pay 27% more often than those not yet trained
  • Retention of the trained group was 22% higher than those directors not trained