Home > Topics > Return on Investment >

The Human Capital Return On Investment

A paper from Global Learning Alliance and Knowledge Advisors

Part 9 - ROI in Human Capital vs. Non-Human Capital ROI

Research has consistently supported the fact that human capital is an undervalued investment opportunity. Past research illustrates that physical and financial capital investment returns are substantially smaller than the value of intangibles like human capital. Phillips states one may see ROI in excess of 800% and the Tennessee Valley Authority who won an award from the ASTD on ROI typically sees average ROI percentages around 1000%. An ROI analysis done by a world-class corporate university was 5,612%! The key is to compare it historically and for major programs or elements of your training -- and not just look at ROI but all the met rics on the score card (i.e. a balanced approach). Nonetheless, it can help the training department prove how they are helping the organization improve overall performance (and does so in a scaleable, consistent manner).

Part 8 < Back to Top > Part 10   

© 2004 bGlobal Learning Alliance and Knowledge Advisors. Reproduced with permission. Any opinions or views contained in this article are solely those of the author and do not necessarily represent those of Training Reference.

Books for training professionals

• Bookshop home page
• Training evaluation books
• Training Needs Analysis (TNA) books

Source suppliers

Visit the Training Reference Directory to view supplier details for a wide range of courses, products and services. Related categories for this section include:

• Evaluation services
• Testing/assessment software

Sponsored links

Back to top