58 THE ROI OF HUMAN CAPITAL
fected more by managerial barriers than by employee effort.
Research has confirmed for decades that executives who use
the balanced approach to people management consistently
outperform the reactive, feast-and-famine managers.
Investment Management
This is the other side of the cost management approach. We
know from the human capital value added and the human
capital ROI formulas from earlier that people do make
money for companies. It only makes sense to invest in them
and to monitor that investment.
Employee Development Investment
Employee development investment is the cost of all educa-
tion, training, and development programs as a percentage
of payroll. But there is a problem here. No one has figured
out what constitutes employee ...