Measuring ROI: How To, Checklist and Worked Example Added

Author: Marta Moakley, XpertHR Legal Editor

By measuring the return on investment (ROI) of various initiatives, HR can determine the value of specific programs, prioritize the programs based on the value determinations, and demonstrate to decision makers how the prioritized programs further organizational goals.

When measuring the ROI of an HR initiative, HR should use conservative and realistic estimates of benefits and costs. In addition, intangible, as well as tangible, benefits should be included in the analysis. Although it may be difficult to quantify intangible benefits (e.g., employee engagement, user satisfaction), by including this general information in the analysis, stakeholders may gauge the value and influence of these benefits in addition to the strict financial analysis.

To help HR in measuring the ROI of an initiative, project or program, XpertHR has added the following new resources: