ROI on Human Capital Investments

by Teamalytics on Jul 25, 2023

Colleagues working together

What has been your return on, well, any investment you’ve made lately?

In today’s volatile economic climate where we are dealing with limited housing and automobile inventories, increasing fuel and grocery costs, along with a myriad of other supply chain issues, being able to accurately assess real value in an expenditure is a definite challenge. Forget trying to find a bargain, most of us would settle for simply knowing we are going to get some degree of a positive ROI on outlays of cash. Many of us are financially cautious and calculating in both our personal and our business worlds.

So, what should we do when it comes to deciding whether to make investments in human capital for our businesses? Traditionally, it has been difficult to measure ROI on expenses related to developing our people. What about now? You probably have some anecdotal evidence regarding their benefit. And most business leaders know that employees appreciate and have more loyalty toward companies that invest in personal growth for their people.

But in today’s let’s-make-every-dollar-count business environment, discussions around providing leadership development opportunities lead to important questions about ROI.

But are there reliable answers?

Beyond measuring program satisfaction, which is relatively easy, how do you practically measure whether someone is becoming a better leader… or not?

Can you know:

  • Whether or not people are utilizing what they’ve learned?
  • If participants are changing in the way your business needs them to?
  • Is there enough behavioral change to justify the cost?
  • If peers are seeing growth in someone’s ability to manage themselves?
  • Whether participants are having a positive impact on others?
  • Are people improving on identified constraints and critical leadership competencies?
  • Are business units getting the results they want … and need?

And, ultimately,

  • Are people making the progress they think they are in their leadership development… or not?

At Teamalytics, we believe the answer to all those questions is a resounding “yes!”

Because we have found that there is an effective way to accurately assess ROI on leadership development.

You just need to know how to collect the data. And we can help you do it.

We can even show you how one of our clients we coached saw a $200m jump in revenue over a 12-month period.

Now that’s a ROI!

Want to know more? You can read our Practical Guide for Measuring Return on Human Capital Investments here.