Consultant, Writer And Trainer
Human Resource And Industrial Relations
Nice topic you have brought out.
Please refer to this Site for other posts on this subject.
The whole HR World over is trying to find out exactly this. Once HR get ascertain it's ROI properly, it will become one of the most coverted Management discipline.
If you can find the method you can surely become the Peter Drucker of HRM and I am not joking.
16th September 2006 From India, Thane
This is really a gr8 issue to discuss.. I came across this topic of ROI when I was doing Project work during my MBA.
There r so many issues involved in this ROI in HR... Like- Employee productivity, time n attendance, capital invested on the employee for a particular project etc.... Ther r few issues which cant be calculate manually..nor even thru performance appraisal methods...
Hope u got some info from my reply...
17th September 2006 From India, Bangalore
There are various functions invoved in HR, and it is a difficult task to measure ROI in all the functions, such as measurement of ROI of Training, Team Building, Designing compensation package, Performance appraisal and many more.
We can start with one at a time, Here is some information on How to calculate ROI for Goalsetting.
A critical component of goal setting is a return on investment (ROI) analysis. A performance increase forecast is needed to calculate the investment required. This, in turn, guides five key programme decisions.
1. Programme rules must be inspiring. Team members judge the quality of the programme by the rules. They will ask, "What's in it for me?" and "What is required?" A unique and meaningful proposition should be readily available.
2. Interacting with a strong communications plan that reflects corporate image. Print, video, Web sites, flash mail or kick-off meetings, a consistent look, and message are necessary. There is a direct correlation between communication frequency and results.
3. Using technology to track and connect with team members. Tracking is more important than periodic progress statements. It is the umbilical cord linking the team activity to individual and corporate performance. The more members know about what they have achieved and how far they need to go, the more engaged and active they become.
4. Using education to power the programme. Education is an important component. Elevating skills and knowledge establishes a competitive point of difference, aligns business goals and increases performance.
5. Combining awards and recognition with the programme for a synergistic effect. Awards can make an impact. It's best to customise the offerings to the performance and interests of the members. Combining various awards- travels, recognition and points- makes a powerful award collection.
Apply these techniques and every team member will be playing the same tune, and that creates the sweet sound of success.
Hope this information will be of help. For other functions lets wait what others has to say.
17th September 2006 From India, Delhi