Return on Human Capital

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I was recently at a conference that discussed management issues and how to lead a more productive work environment. One of the featured topics discussed was employee engagement. A Gallup statistic that was highlighted, stated that on average 63% of all employees are actively engaged.

That may or may not be very effective statistic until it is quantified:

Let’s relate this to payroll.

For every dollar spent the return on investment is only .63

100k payroll – $63k ROI = $37k Loss
1mm payroll – 630k ROI = $370k Loss

The numbers get increasingly scary for business owners. This is just one of the many factors that make up one’s Total Cost of Risk. We at Deland, Gibson can help you with this through steps taken via our signature risk reduction strategies. Please inquire for more details.

Chip Gibson

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