ROI & Human Capital

Human Capital Investment entails a sense of Ubuntu.

Human Capital, albeit a somewhat impersonal term, entails the value employees as a collective hold for a company. Whether we want to admit it or not, we cannot succeed or progress in a professional manner without taking the collective into consideration.

A sense of Ubuntu comes to mind here, “I am because we are”. The success and financial well-being of a company is directly correlated to the professional wellbeing of its employees.

It encapsulates a sense of personhood, humanness, and growth. Investing in Employees’ self-improvement results in enhanced productivity, loyalty, retention of talent and a forward-focused collective unity.

Increasing ROI in Human capital with the use of assessments

It is therefore integral to be in a position within which you can quantify your talent management strategy which entails a mutual return on investment from employees and employers alike.

Investing in employees (and therefore your company) should not be based on “guestimations”. Without thoughtfulness, misguided investments (or training) may result in nothing more than pure economic losses.

Through Psychometry (which includes, amongst others, personality, aptitude, and motivation assessments) an organisation will be able to make informed and decisive human capital investment with substantial returns.

Incorporating Psychometry in your talent management strategy will assist in ensuring future success and aide you and your organisation to achieve its mission and objectives.

Utilizing online assessment platform reduced turnover rates by a minimum of 15% by ensuring that you hire the right individual from the start.

Moreover, 1100% or more ROI is gained by increasing staffing efficiency. Consider this: employees who do not feel valued in a company are substantially less productive. What would it look like if you were to lose 15 minutes of efficiency per day, or worse, per hour?

An employee who feels their company is invested in their success will inevitably feel more valued, thereby becoming a more productive, efficient and conscientious contributor to the financial well-being of the company.

Mutually beneficial

The predictive validity of online assessments refers to the extent to which the scores achieved on proposed constructs (such has personality or aptitude) on psychometric assessments successfully predicts the related model of success a company aims to achieve. This is useful for the quantification of the return you have and or will gain from the investment made in recruitment or internal redeployment strategies.

The predictive validity of online assessments will therefore determine your ROI or return on investment which is determined by means of two factors namely the Investment made (or cost incurred) and Value/Gain accrued (or return).

How does this relate to talent management and employee wellbeing? Well, as stated earlier, without quantifiable evidence your proposed initiatives will most likely be a shot in the dark.

Online Psychological assessments, which are convenient and cost and time effective, assist employers in making informed decisions. It has become so popular that Talent Management Software Platforms have started to design assessment methodology into their software.

For example, The talent platform Fuel50, can be used to assess each employee’s talent and how it aligns with the goals of the company. It further assists in determining how each Employee is able to build and nurture their skills to achieve internal redeployment. The employee’s return on investment in the company itself is therefore greater and the outcome mutually beneficial.

Online psychometric assessment tools which predicts the most effective person-environment fit, increases productivity and provides each employer with invaluable insight and guidance on career trajectory and redeployment of its most valuable assets, its employees.

Traditional methods of interviews, feedback and employee wellness are officially out the window. The time has come to move with the emerging trends, or else, be left behind (and in the dark).


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