The largest expense on any enterprise P&L is the money it spends on combined wages, payroll taxes, paid benefits, and unpaid benefits. This is fitting since most companies at least pay lip service to people being the most important and valuable asset that company has. While many will go to exhaustive lengths to calculate return on investment in software, hardware, and real estate, surprisingly few companies measure the return they get as a result of their spend on people.
Return on People is a philosophy and practice of calculating and projecting cost, revenue, and profit that is a result of a company’s spend on people. Return on People is measured using Human Capital Analytics. Human Capital Analytics is designed to measure people on an unemotional and equal business footing with other business measurements such as financial, operations, inventory and facilities. Management and improvement of Human Capital is the mechanism used to maximize Return on People.
For a snapshot of how well your organization is utilizing its most valuable (and costly) asset, a free version of our ROP Maturity Assessment will be available shortly. You can sign up to be notified as soon as it is available. Your ROP score gauges your organization’s readiness to make strategic use of Human Capital information. A high ROP score indicates your ability to earn high returns on your Human Capital Investment – your Return on People.