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

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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