The Brew

Improve growth & profitability through human capital

HR ROI : Making HR profitable

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What is your HR ROI ?? In most of our discussions with HR & Business Leaders, regarding Human Capital Management initiatives, the question we keep asking is “what are the financial outcomes?” (See The Brew’s HR Analytics to translate intangibles to meaningful numbers); 90% of HR initiatives fall over at the Business level simply because the business case hasn’t shown insight into any Return on Investment. Without this, the executives will continue to push back because they can’t see value in the project. This part specifically deals with the referenced pain point, offering tangible headway, spread across entire human capital value chain

Solving human capital’s achilles heel (click to expand)

Making HR profitable & upping the HR ROI

Making HR profitable & improving HR ROI is one of key objectives of The Brew, and given that human capital costs account for 60 – 70% of overall costs in people intensive businesses, it would greatly help the business & HR leaders, if they could arrive at better decisions with deeper clarity to questions of HR ROI & HR Profitability. That is one of prerequisites of getting the seat at the table. Infact, the way forward for HR executives is:

  • Predict & project the financial benefits of HCM initiatives & system to executives
  • Deploy & govern the initiatives across the system
  • Drive transparency to continuous reporting of deployment, effectiveness & HR ROI, nudging the system to higher adoption & improved buy-ins
  • Master the behavioral psyche & secure the seat at the table

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