Staff development costs' money. Big money and measuring its ROI is not that simple.
So how do you go about deciding what to invest in HR, how to measure it and finding it's ROI.
1-HR Investment is relative to other investment
So if you invest say $10k in a new IT system you probably need to spend 10% on learning to get 100% out of that system. A rough idea would be something in the region of 10-20% of the CAPEX
2-Measuring Training ROI
That's a tough one - but here we go using the Object-Oriented-Management style. YOu define key deliverables over and above the current deliverables and you quantify the economic value. You link the training with the future deliverable. So if in the example in (1) above you can identify a few extra deliverables than you can easily say that the training was transformed into an economic benefit which can be measured.
You can build your competitive edge via your team's expertise. Higher or develop the best. High achieving companies hire average talent and develop it to be the best. The ROI is exponential.
Training motivates talent. If it does then beware of that 'talent'. Training is the only asset of the company that an employee can carry with him when he or she leaves the co
"If you think education is expensive - then try ignorance"
- Derek Bok
Managing Director and Chief Programmes Officer based in Malta and an avid entrepreneur who likes sharing his expertise in various fields with people from all walks of life.
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