In Reply to Parent Post by hsd222
I am trying to calculate ROI of employees, especially shop floor operators and supervisors.
I know how to calculate ROI for some new purchases or something of that kind.
But this is getting harder as I am digging in.
The main part where I am stuck is the tangible and intangible benefits from an employee.
If we consider Production per unit time as a tangible benefit and Effeciency/Effectiveness as intangible benefits, I wonder how I can quantify intangibles.
Also, am I going right on this???
Also my company's management wants that ROI, what exact data should they capture herewith???
I love Randy's response! But saying that might not be a smart move for your own employment.
Calculating ROI for an employee implies that there has been some "I" in the first place. What kind of investments are being taken with these employess and what are the costs associated with these investments?
For things like Six Sigma training, I've heard that companies want the project portion of that training to be equal to or more than the cost of the training. There's your "R".
If you're talking about leadership/teamwork training for your supervisors, consider the costs to train new employees and avoiding the need to do that because your supervisors are just so gosh-darn awesome.
Happy, job-satisfied employees tend to stick around, avoid sick days, be more productive, etc. Take a look at turnover, sick day numbers, productivity numbers.
I doubt you'll find a hard-and-fast way to calculate ROI for employees unless their training has a direct connection to a project or activity.