The number one problem with ROI in HR (and other such metrics)

I am convinced that ROI can offer significant value to HR. ROI can make HR better by making better investment decisions and improve evaluation of activities. Also ROI can show how HR adds shareholder value. In theory at least. Because ROI has a lot of problems. The number one problem is that ROI calculations areContinue reading “The number one problem with ROI in HR (and other such metrics)”

3 alternatives to ROI in HR – Part 3

ROI is used more and more in HR when justifying or evaluating HR projects. But it has at the same time come under a lot of criticism for being too difficult to use in HR. The first alternative I suggested was another financial ratio – CROCI – which may be better due to its focus onContinue reading “3 alternatives to ROI in HR – Part 3”

3 alternatives to ROI in HR – Part 2

In this series , I look at alternatives to ROI in HR. I was asked to come up with alternatives since ROI is sometimes met with some resistance. In my last post, I argued that CROCI is an excellent alternative to ROI if you are looking for an even better financial ratio. It is betterContinue reading “3 alternatives to ROI in HR – Part 2”

3 alternatives to ROI in HR – Part 1

I argued in a blog last week that ROI is not always the answer for HR. I argued that if it was just about getting approval for a project then ROI was too complicated and time consuming. If on the other hand it is used to make better HR investment decisions and/or to evaluate HRContinue reading “3 alternatives to ROI in HR – Part 1”

ROI is not the answer in HR

ROI has become such a buzz-word for HR practitioners and not least for HR consultants.  You cannot read an article, a book or a blog about HR without it being there somewhere. It has become the holy grail; If the consultants can show that their service has a high ROI they can sell more. ForContinue reading “ROI is not the answer in HR”

Are you measuring performance or results? HR is often measuring the wrong one.

It is impossible these days to open a HR magazine, go to a HR conference or read a HR book without being overwhelmed by terms such as ROI on HR, HR analytics, KPI’s, measurement and Human Capital Management. These buzzwords which are trying to make HR ‘harder’ have really gained acceptance in the HR worldContinue reading “Are you measuring performance or results? HR is often measuring the wrong one.”

5 myths about the hardest thing when measuring ROI on HR

Measuring ROI on HR is not difficult. In fact, with some training anyone can master this. If you know how to do it right, it is really all about planning, persistence and probabilities. However, at (at least) one point during the process, you will be left with a question which goes something like this: “HowContinue reading “5 myths about the hardest thing when measuring ROI on HR”

5 things to avoid when measuring HR

Measuring HR is important because it is the only way to make HR more effective and efficient. The only way! It does a lot of other things too – such as creating an objective tool to making better investment decisions and it makes HR more credible as a strategic partner for the rest of theContinue reading “5 things to avoid when measuring HR”

The most important argument for Human Capital ROI

I sometimes get asked; why measure Human Capital ROI? This is simple; to be more efficient and more effective and ultimately to add more value. Unlike any other asset, people have the potential to add value on an exponential scale. For HR to optimise its value creation, it must master two things: doing the rightContinue reading “The most important argument for Human Capital ROI”

The costliest mistake you can make in Talent Management

Talent Management is difficult to get right. Let’s be sure about that. In fact, most talent programs have a negative ROI if properly measured. However, there is one mistake you should avoid at all costs as it will lead to high turnover of talents (and a negative return on investment). That mistake is not havingContinue reading “The costliest mistake you can make in Talent Management”