We know that it’s difficult to talk about Return on Investment (ROI) when, in many cases, the HR department is seen as a cost centre. To overcome this, PSI talent management have shifted the focus from purely financial outcomes to measuring the broader business impact of a given intervention, giving our clients the confidence that their investment is delivering the required results.
While ROI data can be hugely beneficial in terms of providing evidence of the bottom line impact, it is not always the desired (or even a possible) outcome for a given intervention. Organisations may have very specific objectives for introducing, updating or amending an HR initiative that do not relate directly to ROI. Differences in required outcomes may also exist between different stakeholders. Being able to determine both the financial and non-financial effect of the intervention, therefore, enables HR to satisfy various stakeholder needs and to measure the true business impact.
As the framework shows, the PSI talent management approach allows the business impact to be measured at a variety of levels across any form of HR initiative and, by doing so, provides the organization with the greatest certainty that the investment is focused in the right areas. Accurate informed decisions can then be made as to which processes, or elements of a process, are proving effective, which need to be improved and/or which elements are not delivering the desired results and may need to be removed from the HR strategy.