How to Calculate the ROI of HR Projects

I did an episode on ROI in HR!!! (That’s return on investment). I found someone who knows a lot about it and it was a good opportunity to understand how we might do this in HR! Even HR can leverage standard financial techniques to analyze our projects and make our case.

This was the conversation I had with Evelyn McMullen from Nucleus Research. She is NOT a finance, business, or economics major and maybe this is why she is pretty good at explaining it! She says:

🔔 When you are thinking about the bells and whistles… remember there is no ROI on things we don’t actually use.

∞ ROI is greatest when a task is repetitious and applies to a wide range of people. Think payroll.

🤩 Often, we tend to rely on intangible benefits like “increased employee happiness” when promoting our projects. While these are valid considerations, but ROI is better.

Find Evelyn at Nucleus Research

She mentioned an ROI Tool (free!) and ROI University. Go check them out!

Ian Campbell (her boss) published a book on called The Value Sale. Find it on Amazon.

You can also reach out to me for HR consulting in Western Canada!

Andrea Adams