Understanding Human Capital Analysis: How Do You Calculate ROI and Economic Value?

Hello Everyone,

It's an immense pleasure for me to share information on Calculating Human Capital Analysis. The file attached contains all the formulas to calculate:

1) Human Capital ROI (measures the return on capital invested in pay and benefits)
2) Human Capital Cost (measures the average amount paid by the company per employee)
3) Human Economic Value Added (measures the value added per employee in economic terms)

Useful stuff... Looking forward to your valuable suggestions and inputs.

Regards,
Rahul S:-D

Hi Rahul,

Nice working. I would like to know a few things. I am in the Hospitality Industry, so how can I use this format? Not all the figures will be shared with us, and some figures are only on paper!

Thanks & Regards,
Anil

The formula setting has missed the blankets. Human capital ROI = (Revenue - Expenses) / Manpower Cost. The same applies to Human Economic Value Added.

Nice to meet you. Allow me to introduce myself; I am Sigit. I would like to inquire whether this calculation can be universally applied across all companies. I appreciate any insights provided by my colleagues. Thank you very much.

Best regards,
Sigit