Human Capital Return on Investment Calculator

✖Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.ⓘ Revenue [R]			+10% -10%
✖Non Human Capital Expenses measures the return on capital invested in pay and benefits.ⓘ Non Human Capital Expenses [NHC_exp]			+10% -10%
✖Human Capital Expenses includes things like salaries, software, onboarding, training, etc.ⓘ Human Capital Expenses [HC_exp]			+10% -10%

✖Human Capital Return on Investment is an HR Metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits.ⓘ Human Capital Return on Investment [HCROI]

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Formula

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Human Capital Return on Investment

Formula

`"HCROI" = ("R"-"NHC"_{"exp"})/"HC"_{"exp"}`

Example

`"7.847826"=("780000"-"58000")/"92000"`

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Human Capital Return on Investment Solution

STEP 0: Pre-Calculation Summary

Formula Used

Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses
HCROI = (R-NHC_exp)/HC_exp
This formula uses 4 Variables

Variables Used

Human Capital Return on Investment - Human Capital Return on Investment is an HR Metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits.
Revenue - Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.
Non Human Capital Expenses - Non Human Capital Expenses measures the return on capital invested in pay and benefits.
Human Capital Expenses - Human Capital Expenses includes things like salaries, software, onboarding, training, etc.

STEP 1: Convert Input(s) to Base Unit

Revenue: 780000 --> No Conversion Required
Non Human Capital Expenses: 58000 --> No Conversion Required
Human Capital Expenses: 92000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

HCROI = (R-NHC_exp)/HC_exp --> (780000-58000)/92000

Evaluating ... ...

HCROI = 7.84782608695652

STEP 3: Convert Result to Output's Unit

7.84782608695652 --> No Conversion Required

FINAL ANSWER

7.84782608695652 ≈ 7.847826 <-- Human Capital Return on Investment

(Calculation completed in 00.004 seconds)

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Created by Kashish Arora

Satyawati College (DU), New Delhi

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Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 11 Human Resource Metrics Calculators

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Go Quality of Hire = (Job Performance Score+Ramp Up Time Score+Engagement Score+Cultural Fit Score)/Number of Indicators

Average Employee Lifetime Value

Go Average Employee Lifetime Value = (Average Yearly Revenue/Number of Employees)*Average Length of Employee Tenure

Human Capital Return on Investment

Go Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses

Cost Per Hire

Go Cost Per Hire = (External Recruiting Expenses+Internal Human Resource Expenses)/Successful Hires

Employee Churn Rate

Go Employee Churn Rate = (Number of Employees Left/Total Number of Employees Remaining)*100

Employee Turnover Rate

Go Employee Turnover Rate = (Employees Separated/Average Number of Employees)*100

Absenteeism Rate

Go Absenteeism Rate = Total Unplanned Leave/Number of Working Days*100

Average Training Hours

Go Average Training Hours = Total Training Hours/Number of Employees

Overtime Percentage

Go Overtime Percentage = (Overtime Hours/Regular Hours)*100

Employee Satisfaction Index

Go Employee Satisfaction Index = (((Total Score Value of 3 Questions/3)-1)/9)*100

Human Capital Return on Investment Formula

Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses
HCROI = (R-NHC_exp)/HC_exp

What is Human Capital Return on Investment?

Human Capital ROI or HCROI is an HR Metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits.
In layman terms, it is the amount of profit obtained by a company against every dollar invested in their human capital compensation. The HCROI shows the ratio of income derived against the total employment costs.
This compensation includes salaries, compensations, extra monetary benefits, etc spent on FTEs and contingent(temporary or part-time) employees of any organization.
Human Capital ROI shows the financial value individually or collectively contributed by your employees. Basically, it provides a true measure of the productivity of human resources.

How to Calculate Human Capital Return on Investment?

Human Capital Return on Investment calculator uses Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses to calculate the Human Capital Return on Investment, The Human Capital Return on Investment or HCROI is an human resource metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits. Human Capital Return on Investment is denoted by HCROI symbol.

How to calculate Human Capital Return on Investment using this online calculator? To use this online calculator for Human Capital Return on Investment, enter Revenue (R), Non Human Capital Expenses (NHC_exp) & Human Capital Expenses (HC_exp) and hit the calculate button. Here is how the Human Capital Return on Investment calculation can be explained with given input values -> 7.847826 = (780000-58000)/92000.

FAQ

What is Human Capital Return on Investment?

The Human Capital Return on Investment or HCROI is an human resource metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits and is represented as HCROI = (R-NHC_exp)/HC_exp or Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses. Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers, Non Human Capital Expenses measures the return on capital invested in pay and benefits & Human Capital Expenses includes things like salaries, software, onboarding, training, etc.

How to calculate Human Capital Return on Investment?

The Human Capital Return on Investment or HCROI is an human resource metric that evaluates the financial value added by your the workforce against the money spent on them in terms of salaries and other benefits is calculated using Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses. To calculate Human Capital Return on Investment, you need Revenue (R), Non Human Capital Expenses (NHC_exp) & Human Capital Expenses (HC_exp). With our tool, you need to enter the respective value for Revenue, Non Human Capital Expenses & Human Capital Expenses and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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