3 alternatives to ROI in HR – Part 1

Morten Kamp series on alternatives to ROI in HR. Part 1 of 3

See his related post:
ROI is NOT the Answer in HR
3 Alternatives to ROI in HR (Part 2)
Alternatives to ROI in HR (Part 3)

(updated: Oct 10, 2012)

All about Human Capital

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 HR projects then ROI is an excellent tool. In many respects, I am a big fan of ROI but I think you should be aware of the pitfalls of ROI.

One person commented and asked me if I could suggest alternatives to ROI. What a great challenge. Let me therefore suggest three alternatives in this and two coming blogs.

Alternative to ROI in HR

The first alternative to ROI is CROCI – an acronym for “Cash Return On Capital Invested”. I used this ratio intensively when I worked as an financial analyst. In my view, it is a much better…

View original post 457 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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