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

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About Erwin Muniruzaman

A seasoned HR Practitioner with a span almost 15 years on overall HR experience practice of strategizing, policy making and running HR Service operations in Banking Industry and Retail in Indonesia. Developing HR strategy and practice align with Business Strategy as continuous goals. A passionate Reward designer, genuine Talent strategist and enthusiast Problem solver 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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