The ROI of Human Capital

Measuring the Economic Value of Employee Performance

The ROI of Human Capital

Author:Dr. Jac Fitz-enz
Pub Date: February 2009
Print Edition: $19.95
Print ISBN: 9780814436738
Page Count: 336
Format: Paper or Softback
Edition: Second Edition
e-Book ISBN: 9780814413357

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The mission of quantifying the value each employee brings to your organization is a crucial task, and not one to be taken lightly. But how do you accurately determine the contributions of your people and use that knowledge to improve your company’s overall performance?

Now in a brand new edition, The ROI of Human Capital provides you with a complete, reliable method for measuring the contributions of your people to corporate profit. Fully updated with new metrics, this long trusted resource offers a rare blend of management expertise and quantitative measurements, showing you how to gauge human costs and productivity at three critical levels:

1. Organizational. Macro-level data is the launching site of any ROI assessment system. Examples and proven formulas illustrate how to combine quantitative and perceptual measures into a corporate human capital scorecard. The book introduces you to the five key indexes of change: cost, time, quantity, quality, and human reactions.

2. Functional. This is the process arena, which typically sprawls across business units and is therefore difficult to manage and measure. A detailed five-point approach shows how to “tame” processes and add value to them, specifically in terms of service, quality, and productivity.

3. Human Capital Management. You’ll discover how to build a performance matrix that enhances the fundamental HR activities—planning, acquiring, supporting, developing, and retaining—by connecting them to the five indexes of change.


Written by Jac Fitz-enz, the man widely regarded as the inventor of human performance bench­mark­ing, The ROI of Human Capital, which won the Society for Human Resource Management Book of the Year Award in 2001, brilliantly shows how to integrate these levels into a single, end to end system of human capital valuation reporting. It also helps you weigh the potential effects of such practices as HR restructuring, outsourcing, using contingent workers, and merging with or acquiring another company. And, not least, you will learn to create futures scorecards that can improve your ability to see over the horizon and far beyond your competition. Throughout, Fitz-enz enlivens his wealth of hard data with useful examples and a conversational, easy-to-read style.


The second edition contains new material on topics including corporate outsourcing, develop­ments in behavioral science, and advances in trending and predicting that have dramatically changed the way organizations measure the bottom-line effect of employee performance. Utterly up-to-date, this is the go to resource for organizations performing the essential task of measuring the value of their people.


Jac Fitz-enz, Ph.D., is the acknowledged father of human capital strategy and measurement. He began his breakthrough research in these areas in the 1970s and has since trained more than 85,000 managers in 45 countries. From 1980 to 2002 Dr. Fitz-enz was founder and chairman of Saratoga Institute, renowned for its benchmark data on effective HR practices. Currently, he is the founder and CEO of Human Capital Source, developers of Predictive Management—HCM:21®. His other books include The 8 Practices of Exceptional Com­panies; How to Measure Human Resource Manage­ment; Benchmarking Staff Performance; A New Vision for Human Resources (coauthored with Jack Phillips); and Human Value Manage­ment, honored as Book of the Year in 1991 by the Society for Human Resource Manage­ment. Dr. Fitz-enz lives in San Jose, California.



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