Every department within a business, whether it’s Marketing, Sales, Customer Service, Finance or even HR, comes with a cost and a return that must be calculated, monitored, assessed and controlled.
This Return On Investment (ROI) measures how much value each function provides the business, including sale quantities, number of leads, customer satisfaction and staff retention, in comparison to the expenses it requires to perform. The concern is that, while most departments are easier to calculate and justify the benefits versus spend, HR is far more difficult. How do you assign a value to better skill matching and improved culture, or higher staff satisfaction and lower absenteeism? HR departments often utilise HR software systems to assist them achieve their goals, and this seems to add to the challenge through additional expense, while excellent results are overlooked.