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

HOW TO MEASURE HUMAN RESOURCES’ VALUE ADDED 141

retention programs focus on supervisory training and

career management. Finally, when we lose a person, a sys-

tematic, thorough exit interview conducted by a firm spe-

cializing in that can be extremely illuminating.

Summ ary

Human resources and human capital ROI begin with a thor-

ough scan of the capacity of the organization to deal with

the outside world. This scan is followed by a review of inter-

nal factors that may enhance or inhibit the ability of the

organization to respond effectively. The data obtained in the

scan is the basis for capability planning. Once we know

what we need, we review our ability to handle hiring, pay-

ing, developing, engaging, and retaining talent. Significant

changes in costs, ...