Invest in people Maximizes the impact of human capital at financial level

1. Human Capital ROI
Maximizes the impact of human capital at the financial level

2. Usefulness
• Tool for optimise Human Resources management
• Change the way the propose, implement, and
evaluation programs.
• Revise/update internal evaluation strategy/practice
• Show contributions of selected programs
• Earn respect of senior management/administrators
• Justify/defend budgets
• Identify inefficient programs that need to be
redesigned or eliminated
• Enhance design and implementation processes
• Expenditures are viewed as a source of value

3. How is the process?
Evaluation
Program
• Develop evaluation plans and baseline data
• Validate job profiles, diccionary of competencies and
performance indicators
Data
colection
• Evaluation before or after the program If it is a trainning
• Competencies evaluation of each candidate
• Indicators of performance
• Isolate emotional effects
Data
analysis
• Convert data to monetary value
• Calcule return on investment
• Capture the cost of the solution /
identify relevant factors in the
implementation program

4. Evaluation program
Identify the plans and Budget
company wants to invest in
Human capital project or
person
Research job profiles and
diccionary of competencies
Make a matrix of
performance indicators
and competencies to
each job profile
Performance
indicators
• Another way to evaluate the job profile.
Associate to productivity
Delimit
evaluation
plans
• Validate values and cardinal compentencies
• Validate funtions and objectives of the job
position
Importance
of the profile
• Relevance in the organisation
• Map the job postion and the history impacts

5. Data colection
Human capital project
Evaluation
competencies
External
factors
Before
Evaluacion
competencies
Cost of all the
proyect
After
Job profile
Evaluation
competencies of
the job profile
and Isolate
emotional factors
Evaluation of
productivity,
performance and
efficiency

6. Data analysis
Convert data to
monetary value
Calculate Human Capital
ROI
Forcast of
significant
factors in the HC
proyect or the
real impact of
the job profile

7. Benefits
• The increasing cost of human
capital
• Aligns programs to business needs
• Improve support for programs
• Identify successful programs that
can be implemented in other areas
• Top executives involved in budget
and in metrics design and use
• Metrics focus on results
• Measurement focuses on the data
needed and is based on organization
needs
• Programs linked to specific business
needs
• Reporting is output-focused

8. Human Capital Roi
Maximizes the impact of human capital at the financial level
For more infomation contact to
Email: ruthy.leon@gmail.com
Skype: ruthylg
LinkedIn: www.linkedin.com/in/ruth-leon-g-
50842b11
Phone Number: 0051 994 886 133
Ruth Leon Gamboa
Generalist HR consultant with an MSc
in Management (Université Catholique
de Louvain La Neuve – Belgium) and a
BSc in Social Psychology (Pontificia
Universidad Católica del Perú – Perú),
along with nine years of experience in
Human Resources Consulting and
Market research. Constant research in
economic psychology and new trends
in HR methodologies and develop
organisational.