HR Techologies & Systems

Chi-square test for Training Impact

Chi-square test for Training Impact

Chi-square test for Training Impact

Chi-square test for Training Impact

Sep 17, 2025

4

min

A split-panel image showing a group of employees before training and the same group after, with visible signs of improvement, alongside a chi-square symbol (χ²).
A split-panel image showing a group of employees before training and the same group after, with visible signs of improvement, alongside a chi-square symbol (χ²).
A split-panel image showing a group of employees before training and the same group after, with visible signs of improvement, alongside a chi-square symbol (χ²).
Trained Employee
🎓
Untrained Employee
🧑‍💼

Does training really boost career growth?

Let's use data to measure its true impact, beyond just assumptions.

🎯

The Core Question for HR

Is there a statistically significant relationship between completing a specific training program and receiving a promotion within the next year?

We need to move from "we think it helps" to "we have evidence it helps". This is where the Chi-Square test comes in.

Start with What You Observed

First, we create a 'Contingency Table' with our actual employee data. These are the real-world numbers.

Promoted Not Promoted Row Total
Completed Training 50 20 70
No Training 30 50 80
Column Total 80 70 150

Here, we see that out of 70 trained employees, 50 got promoted. Is this difference significant or just random chance?

The Skeptic vs. The Believer

In statistics, we test two competing claims.

Null Hypothesis (H₀)
🤷
"The skeptic's view". Assumes there is NO relationship. Training and promotions are independent.
Alternative Hypothesis (H₁)
💡
"What we want to prove". Assumes there IS a relationship. Training influences promotion.

The goal of the Chi-Square test is to see if we have enough evidence to reject the skeptic's view (the Null Hypothesis).

Observed vs. Expected

Next, we calculate the values we would *expect* to see in each cell if there were no relationship (if the Null Hypothesis were true).

E = Row Total × Column TotalGrand Total

For 'Trained & Promoted': Expected = (70 × 80) / 150 = 37.3

PromotedNot Promoted
Trained O: 50
E: 37.3
O: 20
E: 32.7
Untrained O: 30
E: 42.7
O: 50
E: 37.3

The difference between Observed (O) and Expected (E) is the key to our test!

The Chi-Square Calculation

The Chi-Square formula measures the size of the difference between your observed and expected data.

χ2 = Σ (O − E)2E

(O - E): The difference for each cell.

(O - E)²: Square it to avoid negative numbers.

/ E: Normalize the difference.

Σ: Sum the results for all cells.

For our data, the Chi-Square value is 19.33

Is the Relationship Significant?

A large Chi-Square value suggests the difference isn't due to chance. We compare it to a critical value (or find the p-value).

Statistically Significant!
Our value of 19.33 is large enough. The probability (p-value) of seeing this result by random chance is less than 0.1% (p < 0.001). We can confidently reject the Null Hypothesis.

Conclusion: There is a proven, significant link between our training program and career promotion.

So What? Making Data Actionable

The analysis is done. Now, we act.

Strategic HR Actions

  • Refine Succession Planning: Formally include training completion as a positive indicator in high-potential employee assessments.
  • Inform Performance Reviews: Managers can use training as a data point when discussing career development and readiness for the next level.
  • Guide Compensation Strategy: Link promotion readiness to a higher Compa-Ratio target during salary reviews.

Ready to Prove Your HR Impact?

PeoplePilot's AI-powered platform turns complex data into clear, actionable insights. Measure training ROI, predict career paths, and build a data-driven talent strategy.

#HRAnalytics #TrainingROI #ChiSquare #PeopleAnalytics #DataDrivenHR #HRTech #PeoplePilot #FutureOfWork

Chi-Square test for HR, measure training impact, training effectiveness analytics, people analytics, data-driven HR, training ROI analysis, contingency table HR, statistical significance in HR, succession planning analytics, L&D analytics, proving value of training, HR data analysis, employee promotion analysis, Move beyond assumptions and start proving the value of your L&D programs with a Chi-Square test for training impact. This powerful statistical tool allows HR to determine if there's a significant relationship between completing a training program and achieving a positive outcome, like a promotion. By comparing your observed data (what actually happened) to expected data (what would happen by chance), you can scientifically validate your initiatives and effectively measure your training ROI. Understanding the difference between statistical tests, such as when to use a T-Test vs. a Chi-Square Test, is crucial for any people analytics function. Ultimately, these insights enable you to take strategic action, like using the proven link between training and career growth to build data-driven succession plans for your top talent.
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Frequently Asked Questions

In simple terms, what is a Chi-Square test and why should an HR professional use it?

In simple terms, what is a Chi-Square test and why should an HR professional use it?

In simple terms, what is a Chi-Square test and why should an HR professional use it?

What does "statistically significant" actually mean? 🤷 vs. 💡

What does "statistically significant" actually mean? 🤷 vs. 💡

What does "statistically significant" actually mean? 🤷 vs. 💡

The formulas look intimidating. Do I need to be a statistician to do this?

The formulas look intimidating. Do I need to be a statistician to do this?

The formulas look intimidating. Do I need to be a statistician to do this?

What happens if my results are NOT statistically significant? Does that mean my training is a failure?

What happens if my results are NOT statistically significant? Does that mean my training is a failure?

What happens if my results are NOT statistically significant? Does that mean my training is a failure?

What other kinds of HR questions can I answer with a Chi-Square test?

What other kinds of HR questions can I answer with a Chi-Square test?

What other kinds of HR questions can I answer with a Chi-Square test?

Can you explain "Observed" vs. "Expected" values with an analogy?

Can you explain "Observed" vs. "Expected" values with an analogy?

Can you explain "Observed" vs. "Expected" values with an analogy?

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