ROI is not the answer in HR

Interesting reminder from Morten Kamp of ROI function as evaluation tool NOT prediction tool.

See other Morten Kamp related post:
3 Alternatives to ROI in HR (Part 1)
3 Alternatives to ROI in HR (Part 2)
3 Alternatives to ROI in HR (Part 3)
(updated: Oct 10, 2012)

All about Human Capital

ROI 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. For practitioners it is more about selling their ideas up in the organization (read: to the CFO).

In other words: my claim is that ROI is really just something HR use to get approval and budget for projects and for consultants to sell their projects. The assumptions don’t have to be right, they just have to be good enough to get it though the people who approve budgets. And if that is how it is used then ROI is not the answer.

Don’t get me wrong I believe ROI is a great tool for HR to…

View original post 208 more words

About Erwin Muniruzaman

A seasoned and intelligence HR practitioner with a span of more than 12 years on overall HR experience practice in leading companies of Banking and Retail industry. Leveraging his vast knowledge on Indonesian HR practices and regulations, to build a Performance Culture organization. Currently managing all HR strategy and policies in a multiformat retail business group with almost 15.000 employees in 33 cities across Indonesia. Act as a trusted advisor to member of Board of Directors on HR matters and responsible to align HR Strategies and Initiatives with busines strategic planning. Together with HR Director have transformed a passive and administration focus HR team into more adaptive, dynamic and modern HR team that always aligned its strategy with business strategy and needs. A passionate and HR enthusiast that always eager to share his ideas, opinions and experiences about HR related topics (especially Indonesian cases) to public, as a speaker as well as a HR blog writer in his personal blog/LinkedIn Profile : http://www.mewarisgagasan.wordpress.com https://id.linkedin.com/erwinmuniruzaman

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