Understanding Human Capital ROI is crucial for several reasons:
Strategic Planning: It helps in making informed decisions about where to allocate resources for maximum return. Employee Engagement: Investing in employees can lead to higher employee engagement and satisfaction, which in turn can enhance productivity. Cost Management: It aids in identifying areas where costs can be optimized without compromising on the quality of workforce. Competitive Advantage: Companies that effectively manage and invest in their human capital often achieve a significant competitive advantage.