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员工培训与发展的ROI分析在今天的竞争激烈的商业环境中，拥有一支高效的员工队伍对于企业的成功至关重要。
员工培训与发展是提升员工能力和潜力的关键手段之一。
然而，每一项投资都需要有所回报。
因此，了解员工培训与发展的投资回报率（ROI）分析，对于企业管理者来说尤为重要。
本文将对员工培训与发展的ROI进行详细分析和讨论。
一、ROI的定义与计算方法投资回报率（ROI）是一个重要的绩效指标，用于衡量投资项目产生的经济效益。
ROI可以通过以下公式计算得出：ROI = (投资获利 - 投资成本) / 投资成本 × 100%以员工培训与发展为例，投资获利包括通过培训提高的员工绩效、降低的员工离职率等，投资成本则包括培训费用、培训设施成本和员工培训时间成本等。
二、提高员工绩效的ROI分析员工培训与发展可以提高员工在工作中的绩效，从而对企业产生积极的影响。
举个例子，某公司对销售人员进行销售技巧培训，培训后员工的销售业绩提升了20%。
该培训项目的投资成本为10,000美元，并假设员工的平均年薪为50,000美元。
在培训前，该销售人员的年销售额为100万美元。
在培训后，员工的年销售额增加到120万美元。
按照ROI的计算公式，我们可以得到以下结果：ROI = ((120万 - 100万) - 10,000) / 10,000 × 100% = 1080%这说明，该公司的销售技巧培训项目取得了非常可观的投资回报率。
通过提高员工绩效，公司不仅赚回了投资成本，而且获得了额外的利润。
三、降低员工离职率的ROI分析员工离职对企业是一个严重的问题，因为离职带来了人才的流失、新员工的招聘及培训成本等。
通过员工培训与发展，可以提升员工的工作满意度和忠诚度，从而减少员工的离职率。
以某公司为例，该公司投资10,000美元进行技能培训，使用该培训计划的员工离职率从20%下降到10%。
假设每位离职员工的替代成本为30,000美元，那么降低的员工离职率带来的投资回报率可以通过以下计算得到：ROI = ((100,000 - 200,000) - 10,000) / 10,000 × 100% = 800%这意味着公司通过员工培训与发展，成功地降低了员工的离职率，并获得了可观的投资回报。
职工培训的ROI（投资回报率）评估方法职工培训在现代企业中扮演着至关重要的角色。
通过培训，员工可以获得新的知识和技能，提高自己的工作能力，并为企业的发展做出更大的贡献。
然而，企业在进行职工培训时，需要考虑到培训的投资回报率（ROI），以确保投入的资源能够带来实际的效益。
下面将介绍几种常见的职工培训的ROI评估方法。
一、成本效益比（Cost-Benefit Ratio）成本效益比是一种常用的ROI评估方法之一。
它通过比较职工培训所产生的效益和投入的成本来评估培训的回报情况。
具体计算公式如下：成本效益比 = 培训效益 / 培训成本其中，培训效益可以通过以下几个因素进行衡量：员工工作绩效的提高、员工满意度增加、员工留任率的提高等。
而培训成本主要包括培训课程的费用、培训师的费用以及员工在培训期间的工资等。
二、投资回收期（Payback Period）投资回收期是衡量职工培训ROI的另一种常见方法。
它用于计算培训投资的回收所需的时间。
具体计算公式如下：投资回收期 = 培训成本 / 年度回报在计算投资回收期时，需要确定年度回报的计算方式。
比如，可以考虑员工工作绩效提升所带来的收益、员工流失率减少所带来的成本节约等。
三、员工绩效评估（Employee Performance Evaluation）员工绩效评估是一种直接评估培训ROI的方法。
通过对员工的绩效进行评估，可以判断培训对员工工作能力的提升效果。
在评估过程中，可以采用各种方法，如工作表现评分、360度评估等，来获得客观的绩效数据。
通过综合分析员工绩效评估结果，可以确定培训对员工绩效的影响程度，并据此评估培训的ROI。
四、员工满意度调查（Employee Satisfaction Survey）培训对员工的满意度具有重要意义，因为满意的员工更有可能提高工作效率、留在企业并为其发展做出更大的贡献。
因此，员工满意度调查是评估培训ROI的另一个重要方法之一。
满意度调查可以通过问卷调查、面谈等方式进行，调查内容可以包括员工对培训内容和方式的评价，以及对培训效果的主观感受等。
员工培训ROI分析评估培训投资回报在现代商业环境中，员工培训被认为是提高企业绩效和竞争力的重要手段。
然而，对于企业来说，无论是时间还是金钱上的投资，都需要进行合理的回报评估，以确保培训活动的有效性和可持续性。
因此，对员工培训的ROI（投资回报率）进行分析评估是至关重要的。
1. ROI的定义和计算方法ROI是一种衡量投资回报效果的指标。
它可以通过比较投资获得的收益与投入的成本来计算。
通常，ROI的计算方法为：ROI = （收益-成本）/成本 × 100%。
收益包括培训后员工绩效的提升、员工流失率的降低等，成本则包括培训费用、员工离岗期间的工资和培训师傅。
通过计算ROI，企业可以直观地了解培训投资的效益。
2. ROI分析的意义和目的ROI分析可以帮助企业有效评估培训活动的效果，从而做出明智的决策。
首先，它可以帮助企业确定是否继续投入该培训项目或活动。
如果ROI值高，表明该培训项目带来了较高的回报，企业可以继续进行或扩大规模。
反之，如果ROI值低，企业可能需要重新评估培训方案或考虑其他投资选择。
其次，ROI分析还可以帮助企业比较不同培训项目的效果，选择最具回报的项目。
最后，ROI分析可以帮助企业改进培训活动，提高培训效果，从而提升整体绩效和竞争力。
3. 进行ROI分析的步骤进行ROI分析需要按照以下步骤进行：- 确定培训的目标和期望结果：明确培训的目标和期望结果，以便后续评估。
- 收集数据：收集相关数据，包括培训费用、培训后员工绩效数据、员工流失率等。
- 计算ROI：根据收集到的数据，利用ROI计算公式进行计算。
- 评估结果并做出决策：根据计算结果评估培训的回报情况，并根据需要做出相应的决策，比如是否继续投入、改进培训方案等。
- 监测和调整：随着时间的推移，企业需要定期监测ROI并进行调整，以确保培训活动的持续有效性。
4. ROI分析的挑战和解决方法进行ROI分析可能会面临一些挑战，但可以通过以下方法加以解决。
计划过了学习期怎样提升roi随着市场竞争的加剧，企业对于资源的利用效率越来越关注。
在这种情况下，提升ROI（投资回报率）成为企业追求的目标之一。
ROI是衡量投资效果的重要指标，它直接影响着企业的盈利能力和发展空间。
因此，如何提升ROI成为了每个企业都需要思考的问题。
在提升ROI的过程中，学习是非常重要的一步。
通过学习，人们可以了解最新的市场动态、管理方法和技术手段，从而更好地应对各种挑战和难题。
下面是我在学习期计划中，准备提升ROI的具体方案：一、学习目标1. 了解ROI的概念和计算方法2. 学习市场营销、财务管理、战略规划等相关知识3. 掌握数据分析、财务报表分析、投资决策等技能4. 学习市场趋势、竞争对手动态、顾客需求分析等内容5. 学习领导力、团队管理、沟通协调等软技能二、学习内容1. ROI的概念和计算方法：通过阅读相关书籍、观看视频教程等方式，了解ROI的概念和计算方法，掌握如何用数据来评估和优化投资项目。
2. 市场营销、财务管理、战略规划：选择经典的市场营销、财务管理、战略规划等知识书籍，系统学习专业知识，了解各种市场模型、财务工具和战略规划案例。
3. 数据分析、财务报表分析、投资决策：通过学习数据分析、财务报表分析和投资决策理论，掌握如何运用数据和财务工具来做出明智的投资决策。
4. 市场趋势、竞争对手动态、顾客需求分析：深入了解市场趋势、竞争对手动态和顾客需求分析的方法和工具，为企业的战略定位和产品创新提供支持。
5. 领导力、团队管理、沟通协调：通过学习领导力、团队管理和沟通协调的知识和技巧，提升自己的管理水平和团队协作能力，为ROI的提升提供重要支持。
三、学习方法1. 多渠道获取信息：通过阅读书籍、研究报告、行业资讯等多种途径，获取最新的市场动态和专业知识。
2. 实践与总结：将学到的知识和技能应用到实际工作中，不断总结经验和教训，提升实践能力和解决问题的能力。
3. 公开课与培训：参加相关的公开课和培训，结合其他专业人员的经验和见解，学习更多实用的知识和技能。
行业培训的ROI分析方法随着企业对人力资源的重视程度不断提升，行业培训在现代企业中扮演着越来越重要的角色。
然而，对于企业而言，培训投入是一项庞大的开支，必须进行有效的回报分析，以便确保投资的可持续发展。
本文将介绍一种行业培训的ROI（投资回报率）分析方法，帮助企业评估培训的效果。
一、ROI的定义和计算公式ROI是指投资回报率，是衡量投资效果的一项重要指标。
在行业培训的背景下，ROI用于评估培训投入产生的经济回报。
ROI的计算公式如下：ROI = (培训带来的收益 - 培训投入) / 培训投入 × 100%其中，“培训带来的收益”可以是各种形式的经济效益，如提高员工生产力、减少员工流失成本等。
二、ROI分析的步骤实施行业培训的ROI分析通常可以分为以下几个步骤：1. 确定培训目标和指标在进行ROI分析之前，企业需要明确培训的目标。
目标可以是提高员工技能、提升业务素质等。
同时，为了能够量化培训效果，企业需要确定一些具体的指标，如业务销售额的增长率、员工满意度调查的得分等。
2. 收集数据为了计算ROI，企业需要收集相关的数据。
数据可以来源于培训前后的员工问卷调查、工作绩效评估、销售额统计等。
确保数据的准确性和全面性非常重要。
3. 计算培训投入培训投入包括培训课程的费用、培训师资的薪酬、培训场地的租金等。
确保将所有相关的费用都纳入计算范围，并进行统一的货币单位。
4. 评估培训带来的收益根据企业在第一步中确定的目标和指标，评估培训带来的收益。
例如，如果目标是提高员工销售额，可以通过对比培训前后的销售额数据来评估。
5. 计算ROI根据上述公式计算ROI，并将结果以百分比形式呈现。
如果ROI大于100%，意味着培训带来的收益超过了投入，产生了正向的经济效益。
三、ROI分析的局限性和应用建议尽管ROI分析是一种常用的评估方法，但也存在一些局限性。
首先，ROI无法完全衡量非经济效益，如员工的情感投入、团队合作等。
企业如何在员工培训中提高投资收益率在当今竞争激烈的商业环境中，企业越来越重视员工培训，将其视为提升员工素质、增强企业竞争力的重要手段。
然而，员工培训需要投入大量的资源，包括时间、人力和资金。
如何确保这些投资能够获得良好的回报，提高投资收益率，是企业管理者需要深入思考的问题。
一、明确培训目标企业在开展员工培训之前，必须明确培训的目标。
这不仅有助于提高培训的针对性和效果，还能为评估培训投资收益率提供明确的标准。
培训目标应该与企业的战略目标、业务需求以及员工的个人发展需求相结合。
例如，如果企业的战略目标是在短期内提高产品质量，那么培训目标可以设定为提升员工的生产技能和质量控制知识。
如果企业希望长期培养一批管理人才，那么培训目标可能包括领导力、团队管理和战略规划等方面的能力培养。
明确的培训目标能够让企业在培训过程中集中资源，避免盲目投入，从而提高投资收益率。
二、精准评估员工需求了解员工的实际需求是提高培训投资收益率的关键。
不同岗位、不同层级的员工，其需求存在差异。
通过问卷调查、面谈、绩效评估等方式，深入了解员工在知识、技能和态度方面的不足，以及他们对培训的期望和偏好。
比如，新入职的员工可能更需要了解公司的文化、规章制度和基本业务流程；而资深员工可能渴望提升专业技能或管理能力。
只有根据员工的实际需求制定培训计划，才能确保培训内容对员工具有实际价值，提高他们的参与度和积极性，进而提升培训效果。
三、选择合适的培训方式培训方式多种多样，包括内部培训、外部培训、在线学习、实践操作、导师辅导等。
企业应根据培训目标、内容和员工特点，选择最适合的培训方式。
内部培训可以由企业内部的专家或资深员工担任讲师，他们熟悉企业的业务和文化，能够结合实际案例进行教学，成本相对较低。
外部培训则可以引入行业内的权威专家和最新的理念、技术，拓宽员工的视野。
在线学习具有灵活性高、成本低的优点，适合员工自主学习基础知识和技能。
实践操作能够让员工在实际工作中迅速掌握技能，导师辅导则可以为员工提供个性化的指导和支持。
人力资源培训成本的ROI计算在人力资源管理领域中，培训是一项至关重要的投资。
通过培训，企业可以提高员工的技能水平和工作效率，从而为企业带来更大的竞争优势。
然而，培训成本往往是企业所关注的一个重要指标。
为了更好地评估培训的投资回报率（ROI），企业需要进行相关的ROI计算。
本文将介绍人力资源培训成本的ROI计算方法。
一、ROI的定义和计算公式ROI（Return on Investment，投资回报率）是衡量一项投资的收益率的常用指标。
在人力资源培训领域中，ROI可以用来衡量通过培训所获得的效益相对于培训成本的比例。
ROI的计算公式如下：ROI = （培训收益 - 培训成本）/ 培训成本 × 100%其中，培训收益可以包括以下几个方面的指标：1. 员工工作效率提高所带来的生产力增加2. 员工技能提升所带来的质量提高3. 员工留任率提高所带来的人力成本节省4. 员工创新力提高所带来的创新效益二、确定培训成本在进行ROI计算之前，首先需要确定培训成本。
培训成本包括培训课程费用、培训师傅费用、培训场地费用等各项与培训相关的支出。
三、确定培训收益1. 员工工作效率提高所带来的生产力增加通过培训提升员工的工作技能和知识水平，可以提高员工的工作效率，从而提高企业的生产力。
通过数据记录员工在培训前后的工作表现，可以计算出生产力的增加量。
2. 员工技能提升所带来的质量提高高素质的员工在工作中更加专业和细致，可以提升产品或服务的质量水平。
通过与客户的沟通和反馈，可以评估出质量提高所带来的收益。
3. 员工留任率提高所带来的人力成本节省培训可以提升员工的职业发展和晋升机会，提高员工的满意度和忠诚度。
通过统计员工的离职率和招聘成本，可以计算出员工留任率提高所带来的人力成本节省。
4. 员工创新力提高所带来的创新效益培训可以激发员工的创造力和创新思维，促进企业的创新发展。
通过评估创造力和创新成果，可以计算出创新效益带来的收益。
How to Enhance ROI of Human Capital Through TrainingPresenter:Raymond Lo, Senior ManagerDeloitte Human Capital Advisory Services Limited 21 June 2002How to Enhance ROI of Human Capital Through TrainingAn OverviewWhy Care about ROI of Human Capital? Enhancing ROI of Human Capital Training Initiatives Measuring Training Effectiveness Q&AHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?What is Human Capital?Human Capital (“HC”):is an intangible asset of a company inspires ideas that ignite values financial analysts pay higher attention on HC leverages on measuring the company’s worthE.g. General Electric, Nokia, Microsoft Intelligence and values of employees can generate multi-fold of revenues and are reflected on stock pricesHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Human Capital ComponentsTechnical Know-How & EducationIdeas & Insights CreativityLessons LearntHuman CapitalKnowledge Management Skills & KnowledgeHow to Enhance ROI of Human Capital Through TrainingUndocumented MethodologiesMarket ResearchWhy Care about ROI on Human Capital?Corporate Investment on Human CapitalHuman CapitalIntellectual AssetsUS$1.0 – 3.1 TrillionCustomer AssetsTangible AssetsUS$2.0 TrillionOrgan’l Assets Business Relationship Market ValuesUS$12.4 TrillionIntangible AssetsUS$10.4 TrillionHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Why Care about ROI of Human Capital?Management is concerned with:Reducing Operating CostsIncreasing Productivity, Efficiency & EffectivenessHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Calculating ROITraditional ROI Calculation: Total Benefits – Total Costs Total CostsROI =x 100%Total Benefits: money saved and generated at directly or indirectly Total Costs: include tangible and intangible costsHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Why Care about ROI of Human Capital?Today, employee costs can exceed 40% of corporate expenses (Dr. Jac Fitz-enz)To measure the effectiveness of resources allocation, it is critical to evaluate the ROI in human capitalManagement needs a system of metrics that describes and predicts the cost and productivity curves of its workforce“Quantitative” measures “Qualitative” measuresHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Measuring ROI of Human Capital“Quantitative” measurestend toward measuring costs, capacity and time tell what have happened“Qualitative” measuresfocus on value and human reactions give ideas of why things happened also offer insights of results, and drivers or causes E.g. Poor product quality increases in costs (e.g. re-work and scrap) and prolongs delivery time reduces customer satisfaction (lose customers) increases marketing costs to attract new customersHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Case Study #1An Australian-based banking institute is experiencing high turnover of staff recently since the new operations of the customer service centre. The turnover rate has reached the historical highest of 40%. Besides high turnover, the absenteeism rate is extraordinary high as compared to other departments.Management is very worried about this situation and urges the HR Department to reveal the underlying reasons. The HR Department has invited a number of customer service centre staff for focus group meetings. They discovered that staff find the customer management system (CMS) difficult to operate and has no clear instructions. They always feel frustration to complete simple tasks by keeping the customer wait for a long time. They also feel no accomplishment on their job.How to Enhance ROI of Human Capital Through TrainingCase Study #1 (cont’d)Questions to ask:1.What do you think is (are) the cause(s) ofhigh staff turnover?2.What resolution(s) would you suggest to theHR Department?3.How should the result be measured?Case Study #1 (cont’d)From the focus group discussion, HR Department realizes thatthe staff lack proper training on operating the system. Not thatthe system is complicated, but the staff are just not familiar with the system interface.Consequently, the HR Department has proposed a number ofsolutions to the management:1.Technical Training on CMS Operation2.High Performer Campaign3.Simplification of the CMS FunctionsCase Study #1 (cont’d)For measuring the improvement of staff’s performance, HRDepartment relies data on:1.Staff Absenteeism Rate2.Customer Satisfaction Questionnaire3.Customer Complaints Rate4.Exit Interviews with Staff ResignedAs a result, the staff turnover rate reduce to 5% andcustomer complaints drops to 3 incidents per 1000 calls.Note: This study was conducted in December 2001.How to Measure ROI of Human Capital?TimeEfficiency without ROI considerationN o . o f O u t p u tzEfficiency with ROI considerationzLooking for ROI EnhancementHC accounts about 20% to 30% of a company’s totalworth (Fortune 1000 companies)Create a Knowledge Management System to fosterknowledge retention within the company¾General knowledge assets –i.e. ubiquitous knowledge¾Business knowledge assets –i.e. company specificEnhance the knowledge of staff by sharing information amongst them¾Encourage information sharing¾Provide accessibility to authorized personnelTranslation of ROI of Human CapitalPotential AbilitiesTraining Needs Performance / Productivity Return on Investment (ROI)MotivationalDrivesStaff’s EffortsBehaviorsAbilitiesCorporate Assets –Human CapitalEnhancing ROI Through HR StrategiesTraining & DevelopmentEnhance ROI of Human CapitalRecruitment & SelectionEmployee RelationsEmployee MotivationRewards ManagementMotivate right performanceFoster rightcultureReward right behaviorsDevelop right skills / competenciesPlace right people on jobsTraining InitiativesAnalyzing training needsSoft skills training vs. Technical skills trainingManufacturing ServicingI n d u s t r yHiLowLowHiTechnical SkillsSoft SkillsManufacturingServicingTypes of TrainingEffective Communications Problem Solving SkillsPresentation and Public Speaking NegotiationInterpersonal Skills SeriesTrain-the-TrainersEffective RecruitmentBehavioral and Stress Interview Training for Managers HR Management Series Change Management Conflict Resolutions Employee MotivationTime and Project Management Developing Self-Confidence Team BuildingLeadership and DelegationLeadership SeriesBenefits of TrainingCreate a team spiritTeam Building Enhance interdepartmental communications Increase work procedures and process EffectiveCommunications Select higher quality workforceBehavioral and Stress Interviewing Influence and convince others Give confidence to othersPresentation and Public SpeakingIncrease work process and efficiency Time Management BenefitsTrainingCase Study #2An US-based insurance company is expanding its business in Asia.With its century old experience in North America, it gains over 30%market share in the home country. It is planning to growexponentially in Asia, particularly in China, because it foresees thepotential of the Asian market after China’s accession to the WTO.The headquarters has initiated a massive recruitment campaign inHong Kong. The management faced no problems in recruitingbusiness development individuals in Hong Kong, and they would likethe newly recruited business development individuals to exploit theChina market.Case Study #2 (cont’d)Two months after the recruitment process, themanagement realized that the sales volume does notincreased much, even though workforce has beenincreased by 20%. The management is anxious to know the underlying reasons. Thus, a committee is formed toinvestigate the root causes of the stagnant situation. Inthe research report, the committee addresses a numberof issues:1.Unfamiliarity of the industry regulations in Chinack of business development experiences3.No motivation on hitting higher sales targetQuestions to ask:1.Is there a need for training?2.What types of training would yourecommend?3.How effective would the training be?What to be measured?Case Study #2 (cont’d)Case Study #2 (cont’d)The committee has proposed several training initiatives to improve the current status, which include:1.Industrial Knowledge Training2.Soft Skills Training (SalesTechniques and Presentation Skills)3.Teamwork and Motivation OutwardBoundCase Study #2 (cont’d)The committee set out a number of performance indicators to measure theeffectiveness of the training programs. These indicators include:1.Written Test Examination (to test industry knowledge)2.Random Tape-Recording Conversation (to control the sales quality)3.Customer Satisfaction Survey / Customer Complaints Report (to fostercustomer service and professionalism of staff)4.Team and Individual Rewards (to motivate higher sales effort)Impacts of Ignoring Training Investment Reduce work efficiencyStaff with no training normally needs six times the time to take up the same tasks as those who are trained Increase staff turnoverTraining can enhance staff retention as they become more satisfy on their jobImpacts of Ignoring Training Investment (cont’d)Lower gross profit margins andlower income per employeeA four-year study conducted bythe American Society of Trainingand Development shows thatcompanies which spend moremoney on training have highergross profit margin (24% higher)and income per employee (218%higher) than those spend lessMeasuring Training EffectivenessMeasuring training effectivenessPerformance Management System¾Evaluate improvement on work performance¾Count failure rate if work can be quantified¾Qualitative measurement may include: innovation, mutual trust and respect, teamwork, diversityRewards Management¾Reinforce performance improvement¾Foster preferred behaviors by recognitionROI on TrainingExperienced better performanceCompanies spend more on training have 45%better performance than the S&P 500 indexannually (L. Bassi & D. McMurrer forASTD and Saba, July 2001)Companies invest more in trainingexperience lower staff turnover than thoseinvest less (8% vs. 16%) (C. Lachnit,September 2001)Indicators of ROI on TrainingEmployee JobSatisfactionResponses to Problems Productivity / Efficiency Employee Retention Employee Level OperationalLevelProduct Quality Service Timeliness Customer Satisfaction Customer ServiceLevelHow to Enhance ROI of Human Capital Through Training Q uestions&A nswersQ & A。
How to Enhance ROI of Human Capital Through TrainingPresenter:Raymond Lo, Senior ManagerDeloitte Human Capital Advisory Services Limited 21 June 2002How to Enhance ROI of Human Capital Through TrainingAn OverviewWhy Care about ROI of Human Capital? Enhancing ROI of Human Capital Training Initiatives Measuring Training Effectiveness Q&AHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?What is Human Capital?Human Capital (“HC”): is an intangible asset of a company inspires ideas that ignite values financial analysts pay higher attention on HC leverages on measuring the company’s worth¾ E.g. General Electric, Nokia, Microsoft¾ Intelligence and values of employees can generate multi-fold of revenues and are reflected on stock pricesHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Human Capital ComponentsTechnical Know-How &EducationIdeas & InsightsLessons LearntCreativityHuman CapitalKnowledge ManagementUndocumented MethodologiesSkills & KnowledgeMarket ResearchHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Corporate Investment on Human CapitalHuman CapitalCustomer AssetsIntellectual AssetsUS$1.0 – 3.1 TrillionIntangible AssetsBusiness RelationshipUS$10.4 TrillionOrgan’l AssetsTangible AssetsUS$2.0 TrillionMarket ValuesUS$12.4 TrillionHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Why Care about ROI of Human Capital?Management is concerned with:Reducing OperatingCostsHow to Enhance ROI of Human Capital Through TrainingIncreasing Productivity,Efficiency &EffectivenessWhy Care about ROI on Human Capital?Calculating ROITraditional ROI Calculation:ROI =Total Benefits – Total Costs Total Costsx 100%Total Benefits: money saved and generated at directly or indirectlyTotal Costs: include tangible and intangible costsHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Why Care about ROI of Human Capital?Today, employee costs can exceed 40% of corporate expenses (Dr. Jac Fitz-enz) To measure the effectiveness of resources allocation, it is critical to evaluate the ROI in human capitalManagement needs a system of metrics that describes and predicts the cost and productivity curves of its workforce “Quantitative” measures “Qualitative” measuresHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Measuring ROI of Human Capital“Quantitative” measures tend toward measuring costs, capacity and time tell what have happened“Qualitative” measures focus on value and human reactions give ideas of why things happened also offer insights of results, and drivers orcauses ¾ E.g. Poor product quality Æ increases incosts (e.g. re-work and scrap) and prolongs delivery time Æ reduces customer satisfaction (lose customers) Æ increases marketing costs to attract new customersHow to Enhance ROI of Human Capital Through TrainingWhy Care about ROI on Human Capital?Case Study #1An Australian-based banking institute is experiencing high turnover of staff recently since the new operations of the customer service centre. The turnover rate has reached the historical highest of 40%. Besides high turnover, the absenteeism rate is extraordinary high as compared to other departments.Management is very worried about this situation and urges the HR Department to reveal the underlying reasons. The HR Department has invited a number of customer service centre staff for focus group meetings. They discovered that staff find the customer management system (CMS) difficult to operate and has no clear instructions. They always feel frustration to complete simple tasks by keeping the customer wait for a long time. They also feel no accomplishment on their job.How to Enhance ROI of Human Capital Through TrainingCase Study #1 (cont’d)Questions to ask:1.What do you think is (are) the cause(s) ofhigh staff turnover?2.What resolution(s) would you suggest to theHR Department?3.How should the result be measured?Case Study #1 (cont’d)From the focus group discussion, HR Department realizes thatthe staff lack proper training on operating the system. Not thatthe system is complicated, but the staff are just not familiar with the system interface.Consequently, the HR Department has proposed a number ofsolutions to the management:1.Technical Training on CMS Operation2.High Performer Campaign3.Simplification of the CMS FunctionsCase Study #1 (cont’d)For measuring the improvement of staff’s performance, HRDepartment relies data on:1.Staff Absenteeism Rate2.Customer Satisfaction Questionnaire3.Customer Complaints Rate4.Exit Interviews with Staff ResignedAs a result, the staff turnover rate reduce to 5% andcustomer complaints drops to 3 incidents per 1000 calls.Note: This study was conducted in December 2001.How to Measure ROI of Human Capital?TimeEfficiency without ROI considerationN o . o f O u t p u tzEfficiency with ROI considerationzLooking for ROI EnhancementHC accounts about 20% to 30% of a company’s totalworth (Fortune 1000 companies)Create a Knowledge Management System to fosterknowledge retention within the company¾General knowledge assets –i.e. ubiquitous knowledge¾Business knowledge assets –i.e. company specificEnhance the knowledge of staff by sharing information amongst them¾Encourage information sharing¾Provide accessibility to authorized personnelTranslation of ROI of Human CapitalPotential AbilitiesTraining Needs Performance / Productivity Return on Investment (ROI)MotivationalDrivesStaff’s EffortsBehaviorsAbilitiesCorporate Assets –Human CapitalEnhancing ROI Through HR StrategiesTraining & DevelopmentEnhance ROI of Human CapitalRecruitment & SelectionEmployee RelationsEmployee MotivationRewards ManagementMotivate right performanceFoster rightcultureReward right behaviorsDevelop right skills / competenciesPlace right people on jobsTraining InitiativesAnalyzing training needsSoft skills training vs. Technical skills trainingManufacturing ServicingI n d u s t r yHiLowLowHiTechnical SkillsSoft SkillsManufacturingServicingTypes of TrainingEffective Communications Problem Solving SkillsPresentation and Public Speaking NegotiationInterpersonal Skills SeriesTrain-the-TrainersEffective RecruitmentBehavioral and Stress Interview Training for Managers HR Management Series Change Management Conflict Resolutions Employee MotivationTime and Project Management Developing Self-Confidence Team BuildingLeadership and DelegationLeadership SeriesBenefits of TrainingCreate a team spiritTeam Building Enhance interdepartmental communications Increase work procedures and process EffectiveCommunications Select higher quality workforceBehavioral and Stress Interviewing Influence and convince others Give confidence to othersPresentation and Public SpeakingIncrease work process and efficiency Time Management BenefitsTrainingCase Study #2An US-based insurance company is expanding its business in Asia.With its century old experience in North America, it gains over 30%market share in the home country. It is planning to growexponentially in Asia, particularly in China, because it foresees thepotential of the Asian market after China’s accession to the WTO.The headquarters has initiated a massive recruitment campaign inHong Kong. The management faced no problems in recruitingbusiness development individuals in Hong Kong, and they would likethe newly recruited business development individuals to exploit theChina market.Case Study #2 (cont’d)Two months after the recruitment process, themanagement realized that the sales volume does notincreased much, even though workforce has beenincreased by 20%. The management is anxious to know the underlying reasons. Thus, a committee is formed toinvestigate the root causes of the stagnant situation. Inthe research report, the committee addresses a numberof issues:1.Unfamiliarity of the industry regulations in Chinack of business development experiences3.No motivation on hitting higher sales targetQuestions to ask:1.Is there a need for training?2.What types of training would yourecommend?3.How effective would the training be?What to be measured?Case Study #2 (cont’d)Case Study #2 (cont’d)The committee has proposed several training initiatives to improve the current status, which include:1.Industrial Knowledge Training2.Soft Skills Training (SalesTechniques and Presentation Skills)3.Teamwork and Motivation OutwardBoundCase Study #2 (cont’d)The committee set out a number of performance indicators to measure theeffectiveness of the training programs. These indicators include:1.Written Test Examination (to test industry knowledge)2.Random Tape-Recording Conversation (to control the sales quality)3.Customer Satisfaction Survey / Customer Complaints Report (to fostercustomer service and professionalism of staff)4.Team and Individual Rewards (to motivate higher sales effort)Impacts of Ignoring Training Investment Reduce work efficiencyStaff with no training normally needs six times the time to take up the same tasks as those who are trained Increase staff turnoverTraining can enhance staff retention as they become more satisfy on their jobImpacts of Ignoring Training Investment (cont’d)Lower gross profit margins andlower income per employeeA four-year study conducted bythe American Society of Trainingand Development shows thatcompanies which spend moremoney on training have highergross profit margin (24% higher)and income per employee (218%higher) than those spend lessMeasuring Training EffectivenessMeasuring training effectivenessPerformance Management System¾Evaluate improvement on work performance¾Count failure rate if work can be quantified¾Qualitative measurement may include: innovation, mutual trust and respect, teamwork, diversityRewards Management¾Reinforce performance improvement¾Foster preferred behaviors by recognitionROI on TrainingExperienced better performanceCompanies spend more on training have 45%better performance than the S&P 500 indexannually (L. Bassi & D. McMurrer forASTD and Saba, July 2001)Companies invest more in trainingexperience lower staff turnover than thoseinvest less (8% vs. 16%) (C. Lachnit,September 2001)Indicators of ROI on TrainingEmployee JobSatisfactionResponses to Problems Productivity / Efficiency Employee Retention Employee Level OperationalLevelProduct Quality Service Timeliness Customer Satisfaction Customer ServiceLevelHow to Enhance ROI of Human Capital Through Training Q uestions&A nswersQ & A。
