Summary of The ROI of Human Capital

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  • Innovative


Jac Fitz-enz presents a breakthrough approach to measuring your return on investment (ROI) in human capital. This book could have been dull, dry and dusty in someone else’s hands, but instead is absorbing and a pleasure to read. Using studies done by the Saratoga Institute - his own facility - and drawing upon the work of other researchers as well, the author places this new methodology in the context of today’s business challenges, including e-commerce. He pinpoints satisfaction as the baseline value employees pursue, and shows how you will profit by working toward employee fulfillment. highly recommends this book to those in human resources, and to managers, executives and entrepreneurs who run their own businesses.

About the Author

Jac Fitz-enz, Ph.D., is called the "father of human capital benchmarking and performance assessment." He began his research in the 1970s and has trained more than 50,000 managers worldwide. He founded and chairs the Saratoga Institute, in Santa Clara, California. The firm’s clients include 90 of the Fortune 100 companies. His previous books include The 8 Practices of Exceptional Companies, How to Measure Human Resource Management, Human Value Management and Benchmarking Staff Performance.



Human Capital

Until now, there has not been a reliable way to quantify the ways your employees contribute to the profitability of your company. The Saratoga Institute, known for years of quantitative and qualitative international research, provides a groundbreaking method of measuring the profit impact of employee productivity, also known as "human performance benchmarking."

Learn how to gauge human costs and improve productivity at three essential levels of your company:

1) Organizational - To assess the return on investment (ROI), combine quantitative and perceptual measures into a "corporate human capital scorecard" using the five primary indexes of change: cost, time, volume, errors and human reactions.

2) Functional - The process arena crosses all business units and can be difficult to manage and measure. A five-point approach shows you how to control processes and add value to them in terms of service, quality and productivity. This approach centers on five factors to evaluate in gauging internal functions, stated in questions you can apply to work or to your personal life:

  • How much does it cost?
  • How long does it take?
  • How...

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