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Maximizing Your Return on People

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by

Shane Robertson

on 19 August 2014

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Transcript of Maximizing Your Return on People

Objective
A quantifiable approach to measuring your
return on human capital.
Employees
Business Risk
Absenteeism
How to determine if your investment in Human Capital is paying off.
The single most effective way to reduce turnover is:
Recognition and Praise
Summary
Maximizing Your Return on People
Expense
Asset
Productivity
Presenteeism
Risk Categories
1. Hazard Risk
2. Strategic Risk
3. Business Risk
Turnover
Invest in an area
of concern
Turnover

Lack of vision
Lack of importance
Lack of loyalty
Lack of motivation
Lack of a career advancement
Lack of fun
Six Reasons Your Best Employee Quit You
Cost
An Email
An Award
A Bonus
So how do we calculate the return on investment
Costs due to a person leaving
1. Calculate the cost of the "fill in" while the position is vacant
2. Calculate the cost of lost productivity
3. Calculate the cost of conducting an exit interview
4. Calculate the cost the company invested in training that person
5. Calculate the potential loss of customers

Cost of Employee leaving
- Cost of recognition
= ROI

Understanding how to calculate the potential ROI when investing in your human capital can gain you a competitive edge in the market.
CFO: What happens if we invest in developing our people and then they leave us..?

CEO: What happens if we don't and they stay..?
Full transcript