ROI Repository for
Human Capital: Self-Assessments
Welcome to the self-assessments section of the Return on Investment (ROI) Repository for Human Capital. We recommend you follow this sequence to maximize your results.
How Results-Based Are Your HR Programs? assesses the extent to which your programs are designed to deliver results and the success rate of these programs. This realization is typically the entry point for implementing a serious evaluation system.
Is Your Organization Ready for ROI? evaluates the extent to which your organization is a candidate for ROI and how urgent the need is for ROI evaluation. This assessment looks at specific issues within organizations that create the need for a more serious evaluation system.
What is Your Knowledge of ROI? checks your knowledge of ROI. Some individuals and organizations may find ROI challenging to pursue. This assessment attempts to remove some of the myths and misunderstandings about ROI evaluation.
What Drives Your Human Capital Investment? focuses on what pushes the investment in human capital. Five strategies can be used to decide how much to invest. The key in this assessment is to see what drives the rationale to invest and whether it should be changed.
If you have any questions, please contact us at info@roiinstitute.net.
How Results-Based are Your HR Programs?
A good starting point to showing the value of human capital investment is to assess your current success with delivering results. This 20-item assessment highlights some of the principal issues that influence the success of programs. We recommend that the entire HR team complete this assessment. The terminology and specific emphasis of this assessment may need to be adjusted for your particular organization. This brief assessment serves two purposes:
- It provides a gap analysis, as some responses are not where they need to be. This identifies a gap to address.
- It measures the current status that can be compared in future months and years as efforts are made to ensure that the human resources programs deliver the results.
Take the How Results-Based Are Your HR Programs? assessment.
A downloadable version is also available.
Is Your Organization Ready for ROI?
As organizations attempt to show the value of their investments all the way to the financial ROI, it is often a journey, ensuring that programs are designed for results, delivering results, and measuring and reporting the intended results. Some suggest that they aren’t quite ready for ROI. For others, it is almost too late to tackle ROI because they have tremendous pressure to show ROI quickly. This assessment is an excellent tool to gauge your readiness for ROI and the urgency in pursuing ROI implementation. This assessment captures the factors that create the need for a more serious evaluation in an organization and is appropriate for the entire HR team.
Take the Is Your Organization Ready for ROI? assessment.
A downloadable version is also available.
What Is Your Knowledge of ROI?
The concept of ROI conjures up images of complex formulas, complicated math equations, and heavy finance and accounting terminology. Some also think that it may take too much time, or that it could engulf the entire team into paralysis by analysis. Check your ROI knowledge with this quiz. It is a great assessment for the entire HR team as you begin to consider conducting ROI studies for some of your programs.
Take the What is Your ROI Knowledge? assessment.
A downloadable version is also available.
What Drives Your Human Capital Investment?
The concept of human capital investment has grown in the last two decades, underscoring the importance of human capital in the management of organizations. While the term human capital is commonplace in organizations, management’s role in this important resource is often unclear. This lack of clarity lends to the mystery of human capital investment and now commands much executive time and attention–requiring a concerted pursuit for the optimal investment level.
While there is no consistent definition among human resource professionals and executives, a consistent theme is that human capital represents the relationship between what organizations invest in employees and the emerging success. The relationship to success is a mystery. Imagine this scenario. The CEO of a $5 billion revenue company proposes to its board of directors that the company make an investment of $1.8 billion for the coming year. When describing the investment, the CEO is optimistic that the returns will follow, although he does not know how much of a return will be realized and cannot estimate it reliably. However, he is confident that the investment is needed and that it will pay off for the company. The executive explains that this investment, which represents almost 40 percent of its revenues, is based on benchmarking data that shows other firms are making similar investments. When the investment is made, and the consequences develop, the CEO admits that the value of this investment may still be unknown; but, nevertheless, he asks for the money.
The investment in question is the investment in human capital. As extreme as it may seem, this scenario plays out in organizations each year as they invest in the workforce. Budget approvals are granted on faith, assuming that the requested investment will pay off.
There is far too much mystery about the connection between the investment in employees and the success that follows. This mystery causes some organizations to invest too much or too little–either of which can end in disaster. This brief assessment sheds new light on how to determine the optimum investment in human capital. Simply put, there are five strategies:
- Let others do it.
- Invest the minimum.
- Invest with the rest.
- Invest until it hurts.
- Invest when there is a payoff.
These strategies explore the range of possibilities, enabling executives to examine all the options before deciding on a particular one.
It is helpful to reflect on which of these strategies is your dominant approach to investing in human capital. We have surveyed chief human resource officers, and below are the results that reflect how the changes in strategies are adjusting over time.
The results show fewer organizations relying on the first two strategies to fund their human capital programs, and more are investing as long as there is a payoff. Some are using a combination of Invest with the Rest, using benchmarking data, and Investing as Long as There is a Payoff. This is a healthy combination. The key is to know where are you with your investment strategy and where you want to be.


























