Calculating ROI per Employee for Optimal Contribution Analysis

Hi All,

I need suggestions on how to compute ROI per employee across the company (not division-specific). This is not to calculate ROI on training or engagement, but ROI per person against Revenue vs. Cost. Costs considered would include Recruitment cost, Salary, office Rent, Hardware and Software costs, etc. While we can obtain the overall ROI by dividing total revenue by total cost, how do we calculate ROI for each individual?

The concept is that an employee should generate a contribution twice the individual cost, which should be linked with rewards. For example, if the cost of an employee is INR 100,000, their contribution to revenue must be INR 200,000. I need input on how to quantify the contribution of an individual employee in INR for Support/Operations teams.

Regards,

Dear Brian D'Souza,

Earlier, there was a query on Human Capital Return on Investment (HCROI). I had given an extensive reply to this post. Click the following link to refer to it. Scroll down to read my second post as well.

URL: [https://www.citehr.com/598564-outcome-hcroi-human-capital-return-investment.html](https://www.citehr.com/598564-outcome-hcroi-human-capital-return-investment.html)

Thanks,

Dinesh Divekar