3 alternatives to ROI in HR – Part 2

Morten Kamp series on alternatives to ROI in HR. Part 2 of 3

See his related post:
ROI is NOT the Answer in HR
Alternatives to ROI in HR (Part 1)
Alternatives to ROI in HR (Part 3)
(updated: Oct 10, 2012)

All about Human Capital

Alternatives to ROI in HR

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 better because it also focuses on cash and balance sheet items.

But perhaps it is worth asking the question: Is ROI in HR worth the ROI? You often need a tremendous amount of time and resources when measuring intangible activities like human behavior. And frankly is this measuring process worth it? If you calculate how much time goes into the whole process, it is likely you will have lost any savings the project generated.

In my view, the answer is that ‘yes’, sometimes it is worth doing a ROI on a project but for many (most) project…

View original post 252 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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