Measuring & Communicating ROI (or is it Impact?) Presented by Jack Mills, Director National Network of Sector Partners August 17, 2011 For more information: www.nnsp.org firstname.lastname@example.org
Why Measure ROI/Impact on Employers?• Who is the audience? – Internal use: Managing/improving services, supporting decision-making, obtaining resources – Employers: Provide answers to “What’s in it for me?” – Public officials: Provide answers to “What helps achieve policy/political goals?”
What about ROI?Information needed for Return on Investment analysis is:1. Not usually collected by employers2. Not the basis for most employers’ decisions about human resources3. Problematic (because high rigor is needed to determine ROI, since things have multiple causes)
Impact: a Better Approach• Impact can be based on data of various kinds and opinion; ROI is based on data that can be “dollarized”• Internal staff and partners, employers, and public officials care about impact; communicating it is powerful
Examples of Impact to Measure• Impact on competitiveness/profitability• Satisfaction/extent to which employers’ expectations were met• Reduction of cost and/or risk for employers• Impact on retention/turnover
Examples of Ways to Identify Impact• Employer testimonials – Most powerful when they have information about increased profitability and competitiveness, decreased cost, etc.• Post services surveys of employees and their supervisors that get clear answers about perceptions of services’ impact• Pre and post services surveys and interviews that identify needs/costs, and get clear answers about impact.
Resources National Network of Sector Partners – Training and assistance – Industry-specific peer learning – Policy development assistance – Resources and materials – Etc. To find our more about services NNSP provides and/or become an NNSP member go to www.nnsp.org