The ROI of Human Capital: Measuring the Economic Value of Employee Performance, Second Edition

HOW TO MEASURE HUMAN CAPITAL’S CONTRIBUTION TO ENTERPRISE GOALS 59

Nevertheless, let’s not let ignorance stand in our way.

We’ll use it as a stimulant. There is a workable solution,

even though its factual basis is suspect. Set your own stan-

dards for what constitutes a developmental expenditure.

You can do it any way you like, because there is no generally

accepted standard. Then, collect data according to your

model and monitor those data every quarter. Pretty soon

you will see movement, and you can begin to judge the value

of that investment. Ask yourself, did we see quality, innova-

tion, productivity, customer satisfaction, or sales increase as

the training investment increased?

These are just a few of the things that can be tracked and

managed