Overview
The standard measure of employee value is the Human Capital ROI. There are various definitions of this measure, but they basically come down to a measure of revenue or profit, divided by employee benefit costs.
Employee Costs
When calculation Human Capital ROI, one must be sure to include all employee costs, including the following.
- Salary
- Benefits
- Health Care Costs
- 401 K
Employee Lifetime Value
{% HCROI \times (Annual \; Cost) \times (Lifetime Tenure) %}