How to Enhance ROI of Human Capital Through Training Presenter: Raymond Lo, Senior Manager Deloitte Human Capital Advisory Services Limited 21 June 2002 How to Enhance ROI of Human Capital Through Training An Overview Why Care about ROI of Human Capital? Enhancing ROI of Human Capital Training Initiatives Measuring Training Effectiveness Q & A How to Enhance ROI of Human Capital Through Training Why Care about ROI on Human Capital? What is Human Capital? Human Capital (“HC”): is an intangible asset of pany inspires ideas that ignite values financial analysts pay higher attention on HC leverages on measuring pany’s worth ¾ . General Electric, Nokia, Microsoft ¾ Intelligence and values of employees can generate multi-fold of revenues and are reflected on stock prices How to Enhance ROI of Human Capital Through Training Why Care about ROI on Human Capital? Human ponents Technical Ideas & Know-How & Insights Education Lessons Learnt Creativity Human Capital Knowledge Undocumented Management Methodologies Skills & Market Knowledge Research How to Enhance ROI of Human Capital Through Training Why Care about ROI on Human Capital? Corporate Investment on Human Capital Human Customer Tangible Capital Assets Assets US$ – US$ Trillion Intellectual Trillion an’l Assets Business Market Values Intangible Relationship Assets US$ Trillion US$ Trillion How to Enhance ROI of Human Capital Through Training Why Care about ROI on Human Capital? Why Care about ROI of Human Capital? Management is concerned with: Reducing Operating Costs Increasing Productivity, Efficiency & Effectiveness How to Enhance ROI of Human Capital Through Training Why Care about ROI on Human Capital? Calculating ROI Traditional ROI Calculation: Total Benefits – Total Costs ROI = x 100% Total Costs Total Benefits: money saved and gen