ROI Of Talent

When organizations implement high performance talent initiatives (e.g., recruitment and selection procedures, performance management systems, and employee involvement programs) they reap rewards in productivity, quality, and innovation. However, managers often struggle to measure and report the impact of talent in a financially compelling manner.

Thirty years ago, the source of value in organizations was largely based on tangible assets. Today, close to 90% of a firm's value is based on intangible assets. Your workforce is your main source of competitive advantage, and implementing high quality talent management programs allows you to maximize your investment in human capital. To better understand the impact of such investments, organizations are now beginning to investigate the ROI and impact of their human capital.

The following sections summarize some research studies that demonstrate the benefits of effectively managing talent.

When evaluating the impact of your talent in your organization, you can break it down into two levels of analyses – each with different ways to measure impact.

Individual Results

Do individuals that are selected carefully, developed, and engaged perform better than individuals who aren't?
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Organizational Results

Does an organization that creates a culture that values human capital and implements systems to support that strategy outperform organizations without that focus?
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