Seminar On Maximising Return On Investment By Surajit Banerjee
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This document discusses maximizing return on investment in people. It notes that return on investment is a backward-looking metric best used on an ongoing basis for continuous improvement. Measuring the "benefit" of people investments can include reducing time taken for operations and incremental services offered. Organizations typically invest in people through knowledge/training, salary, and infrastructure. If returns are not commensurate, the effectiveness of instruments used for investment should be evaluated, such as perceived value by employees, relevance of training, and structure of compensation plans. Effectiveness can be measured through feedback, engagement surveys, performance tracking, and process reviews.
Seminar On Maximising Return On Investment By Surajit Banerjee
- 1. Planning and Resource Maximisation Seminar on Maximising Return on I M i i i R t Investment t t National HRD Network 29th May , 2009 Surajit Banerjee Director – HR Max Healthcare
- 2. Thoughts around ROI (important to keep in mind) •It is a backward l ki metric It i b k d looking ti •Therefore need to use it on an ongoing basis for Continuous Improvement purpose •It is often difficult to put a ‘value’ to Org benefit in the I i f diffi l ‘ l ’ O b fi i h employee spend context
- 3. Typical formula for Human Capital ROI p (Total benefit – Total costs ) ________________________ * 100 = Total cost
- 4. How do you measure ‘benefit’ Through • reduction in time taken for any operation (TAT) …costed through manhours • incremental services offered * outsourcing cost ….etc etc
- 5. What are the investments that Organisations typically make on People Knowledge Training Salary Resulting in Products and Infrastructure Services Exposure
- 6. What happens if…. You make an investment and … You find that the Returns are not commensurate
- 7. You evaluate …. “Effectiveness of the instruments used ”
- 8. You evaluate …. Perceived value by employees - eg “Am I getting the right salary” which translates into eg. Am salary desire to perform - eg . “Do I have the tools to do what I need to” which Do to addresses attitudinal issues Vs Real value - eg. “Is the training and knowledge dissemination relevant and customised” - eg . “Does the structure of compensation motivate str ct re moti ate performance” , … etc etc
- 9. The instruments can be .. •Inappropriate in terms of amount •Inappropriate in terms of structure pp p •Inappropriate in terms of market or other relevance •Inappropriate in terms of ‘delivery’ mechanism
- 10. And all this assuming The right people are onboard
- 11. What do you use to measure effectiveness of investment Conclusion •Individual and collective feedback •Employee Engagement measurement p y g g •Performance measure Tracker •Development and Knowledge enhancement refresher / review •Departmental process Tracker , … etc etc Departmental Thank you