Human Capital: The ROI Perspective

Abstract

Heraclitus, the famous Greek Philosopher had once quoted “Change is the only constant thing in life.” It goes without saying that in the context of todays’ complex organizations, technology has revolutionised the way organizations function. Organizations today have become more lean, agile and customer centric as they unceasingly strive to drive Customer Value. Implicit in this value is the undeniable contribution made by the human resource.

It goes without saying that any organization is as good as its employees. The bottom line here is that employees should positively and meaningfully contribute towards achieving the strategic organizational objectives. If the reverse happens, then the organization would end up spending millions on employee compensation without any considerable return on capital employed. As organization’s give more thrust to a value driven work process, it is implicit that ultimate value, can only be accomplished through a highly knowledge driven, competent and motivated workforce.