{"id":1770,"date":"2014-02-06T09:39:56","date_gmt":"2014-02-06T14:39:56","guid":{"rendered":"http:\/\/www.ngenperformance.com\/?p=1770"},"modified":"2014-02-06T14:26:30","modified_gmt":"2014-02-06T19:26:30","slug":"employees-as-investors-communicating-the-roi","status":"publish","type":"post","link":"https:\/\/www.ngenperformance.com\/?p=1770","title":{"rendered":"Employees as Investors \u2013 Communicating The ROI"},"content":{"rendered":"

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Employees as Investors<\/h2>\n

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The longer you keep employees and the higher performing they are, the greater your return on investment is in recruited them. But have you calculated the return on investment that your employees receive from working for you? This information can help you retain employees and position you as an employer of choice.<\/p>\n

All employees view themselves as investors of their human capital (which consists of one\u2019s knowledge, skills, abilities, time and effort) and, as such, expect a return on their investment. Employees are constantly evaluating whether or not what they are getting in terms of salary, bonuses and programs is a good return on what they do for their employers. They regularly compare other opportunities in the marketplace to determine which ones might yield them a higher return.<\/p>\n

Since employees today view themselves as free market agents, it is important to ensure that your employment relationships are open-ended and win-win. With a more mobile and flexible workforce there is a stronger need for your organization to communicate the ROI \u00a0employees will gain by working with you, otherwise they may look elsewhere to invest their human capital.<\/p>\n

To build a culture of retention, employees must be able to easily calculate their ROI. The role of HR and leaders is to create an environment where employees can discuss their individual ROI expectations and renegotiate, if appropriate, with you before looking to your competition for a better deal. It is your total rewards program (TRP) that serves as the vehicle for employees to calculating their ROI. It must be flexible and adaptable enough to address the values, expectations and behaviours of a multigenerational workforce.<\/p>\n

Measuring your Total Rewards Program<\/h3>\n

To ensure that your TRP is delivering results and demonstrating the characteristics of organizational engagement \u2013 transparency, responsiveness and partnering \u2013 you can measure the following activities:<\/p>\n