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Human Capital Return on Investment Formula

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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. Check FAQs

HCROI = \frac{R - NHC exp}{HC exp}

HCROI - Human Capital Return on Investment?R - Revenue?NHC_exp - Non Human Capital Expenses?HC_exp - Human Capital Expenses?

Human Capital Return on Investment Example

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Here is how the Human Capital Return on Investment equation looks like with Values.

Here is how the Human Capital Return on Investment equation looks like with Units.

Here is how the Human Capital Return on Investment equation looks like.

7.8478 = \frac{780000 - 58000}{92000}

7.8478 = \frac{780000 - 58000}{92000}

7.8478 = \frac{780000 - 58000}{92000}

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Human Capital Return on Investment Solution

Follow our step by step solution on how to calculate Human Capital Return on Investment?

FIRST Step Consider the formula

HCROI = \frac{R - NHC exp}{HC exp}

Next Step Substitute values of Variables

∴

HCROI = \frac{780000 - 58000}{92000}

Next Step Prepare to Evaluate

∴

HCROI = \frac{780000 - 58000}{92000}

Next Step Evaluate

∴

HCROI = 7.84782608695652

LAST Step Rounding Answer

∴

HCROI = 7.8478

Human Capital Return on Investment Formula Elements

Variables

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.

Symbol: HCROI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Human Capital Return on Investment

Revenue

Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Revenue

Non Human Capital Expenses

Non Human Capital Expenses measures the return on capital invested in pay and benefits.

Symbol: NHC_exp

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Non Human Capital Expenses

Human Capital Expenses

Human Capital Expenses includes things like salaries, software, onboarding, training, etc.

Symbol: HC_exp

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Human Capital Expenses

Other formulas in Human Resource Metrics category

Go Absenteeism Rate

AR = \frac{TUL}{NWD} \cdot 100

Go Cost Per Hire

CPH = \frac{ERE + HR exp}{SH}

Go Employee Turnover Rate

ETR = (\frac{E sep}{AVG emp}) \cdot 100

Go Overtime Percentage

O% = (\frac{O hrs}{R hrs}) \cdot 100

How to Evaluate Human Capital Return on Investment?

Human Capital Return on Investment evaluator uses Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses to evaluate 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 evaluate Human Capital Return on Investment using this online evaluator? To use this online evaluator 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.

FAQs on Human Capital Return on Investment

What is the formula to find Human Capital Return on Investment?

The formula of Human Capital Return on Investment is expressed as Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses. Here is an example- 7.847826 = (780000-58000)/92000.

How to calculate Human Capital Return on Investment?

With Revenue (R), Non Human Capital Expenses (NHC_exp) & Human Capital Expenses (HC_exp) we can find Human Capital Return on Investment using the formula - Human Capital Return on Investment = (Revenue-Non Human Capital Expenses)/Human Capital Expenses.

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Human Capital Return on Investment Formula

Human Capital Return on Investment Example

Human Capital Return on Investment Solution

Human Capital Return on Investment Formula Elements

Other formulas in Human Resource Metrics category

How to Evaluate Human Capital Return on Investment?

FAQs on Human Capital Return on Investment

Variable Name