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Talent Era, The: Achieving a High Return on Talent by Subir Chowdhury

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Chapter 8. Return on Talent

Why are effective managers always interested in their return on investments? Why do they want to know who in the company is driving return on investments? Why should they care about measuring return on investments in Talent? What is the correlation between Talent and return on investments?

In this chapter, I introduce the concept of return on Talent (ROT). For decades, organizations have used key metrics like ROI (return on investments) and ROA (return on assets) to determine value. But, in the future, more organizations will use the measurement of ROT. Current business measurement equations merely measure the use of financial capital, but ROT measures the return on human capital. To calculate ROT, you simply divide ...

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