Challenges for a Better Employee Relationship Management
The relationship between employees working in a common organization is called as employee relationship. Every employee should ideally be comfortable with others to stay motivated and stress free. No conclusion has ever come out of disputes; instead it is just a mere wastage of time and lead to a negative environment at work. The employees […]
Employee Engagement – Meaning and Ways to Enhance it
How do you think an organization runs? With the help of people who contribute in their own way to accomplish tasks and achieve goals of the organization. The individuals who spend their maximum part of the day at the workplace, striving hard to reach to a conclusion benefiting them as well as the organization are […]
Factors affecting Job Design
A well defined job will make the job interesting and satisfying for the employee. The result is increased performance and productivity. If a job fails to appear compelling or interesting and leads to employee dissatisfaction, it means the job has to be redesigned based upon the feedback from the employees. Broadly speaking the various factors […]
Gestures and Body Language in Soft Skills
Soft skills refer to the way one conducts himself/herself at workplace. It is an individual’s behaviour which either makes or breaks him. Gestures and body language play a crucial role in soft skills. Gesture is a type of communication where the individual communicates without speaking, simply with the help of hand and body movements, facial […]
Objectives of Conducting a Group Discussion
Why is a Group Discussion Organized ? In the previous article, we talked about what is group discussion, the basics and how is it different from a debate. In this article we are going to cover a number of subjects including why a Group discussion is being conducted, the areas of evaluation during a selection […]
World over organizations are concerned about the return on investment (ROI) of talent management. Those who are investing money into the same are searching for efficient means to calculate their ROI. This problem is not unique to talent management only; training and development for example suffers from the same drawback to a certain extent.
Fortunately there are software available and in development process for the same. These software’s help you in calculating your returns on investment for talent management. The software’s span the entire talent lifecycle and are built to automate and track the entire activities including the financial inputs and outputs at each stage. The software’s bring together all parts of the talent management system into a single collaborative environment. The environment may be either web based on otherwise, depending upon the vendor.
An alternate way of doing this would be making calculations manually, hectic but worth doing considering the benefits. ROI is the ratio of money gained or lost on money invested into a particular product, process or a project. Typically these calculations are undertaken over a three year period. Here are the steps to be followed.
The very thought of calculating cost for performance management system appears bizarre, especially for organizations that employee a good number of people. But there is a method to it, a poll. Choose a representative number of managers or employees and enquire about the average time they spend on preparing performance appraisals for a given year on one singe employee.
Now multiply each of these averages by the total of employees in your organization and the average salary for these managers and employees. For example if the managers in consideration spend an average of 4 hours on each employee appraisal and the average pay for the managers is $ 30 (let’s say) and your company has 200 employees. Then the total cost would come up as 4 × 200 × 200 i.e. $ 24000.
Similarly now calculate the cost for employees. Assuming if each employee spends 2 hours on the appraisal process for each employee and the average pay per hour is $ 15, than the total cost for appraisals for employees is 2 × 25 × 200 i.e. 10000.
In addition the staff growth per year has also to be accounted. The average time spent by the HR people administering and managing the process also needs to be taken into account. Finally other labor costs like copying, assembling, mailing and printing etc also need to be taken into account. All these costs added make up for the labor costs. Here in our case, if we do not account for the administration and other labor costs the total cost would be $ 34000.
Then the physical costs are accounted. These include the cost of paper, stationary, copier, printer etc. An increase of 2-3 % of these costs should also be taken into consideration. The labor and the physical costs combined make up for the total costs incurred. The costs which become the investment now, divided by the cost of purchase gives us the return on investment.
The return may give different results under different conditions of measurement. Though it is entirely not possible to calculate the return on investment on intangible assets, however an approximation always gives an organization a fair idea of their profitability.
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