Seminar On Maximising Return On Investment By Surajit Banerjee
1. Planning and Resource Maximisation
Seminar on
Maximising Return on I
M i i i R t Investment
t t
National HRD Network
29th May , 2009
Surajit Banerjee
Director – HR
Max Healthcare
2. Thoughts around ROI
(important to keep in mind)
•It is a backward l ki metric
It i b k d looking ti
•Therefore need to use it on an ongoing basis for
Continuous Improvement purpose
•It is often difficult to put a ‘value’ to Org benefit in the
I i f diffi l ‘ l ’ O b fi i h
employee spend context
3. Typical formula for Human
Capital ROI
p
(Total benefit – Total costs )
________________________ * 100 =
Total cost
4. How do you measure ‘benefit’
Through
• reduction in time taken for any operation (TAT) …costed
through manhours
• incremental services offered * outsourcing cost ….etc etc
5. What are the investments that
Organisations typically make on
People
Knowledge
Training
Salary
Resulting in Products
and
Infrastructure Services
Exposure
6. What happens if….
You make an investment
and …
You find that the Returns are not commensurate
8. You evaluate ….
Perceived value by employees
- eg “Am I getting the right salary” which translates into
eg. Am salary
desire to perform
- eg . “Do I have the tools to do what I need to” which
Do to
addresses attitudinal issues
Vs
Real value
- eg. “Is the training and knowledge dissemination
relevant and customised”
- eg . “Does the structure of compensation motivate
str ct re moti ate
performance” , … etc etc
9. The instruments can be ..
•Inappropriate in terms of amount
•Inappropriate in terms of structure
pp p
•Inappropriate in terms of market or other relevance
•Inappropriate in terms of ‘delivery’ mechanism
10. And all this assuming
The right people are onboard
11. What do you use to measure
effectiveness of investment
Conclusion
•Individual and collective feedback
•Employee Engagement measurement
p y g g
•Performance measure Tracker
•Development and Knowledge enhancement refresher / review
•Departmental process Tracker , … etc etc
Departmental
Thank you