Are you beyond the break-even point?

Blog located in HR Solutions posted on

It’s Monday morning, you’re getting ready to present to one of your biggest clients. Your director of operations resigns, your administrative assistant calls in sick and you are made aware of a client’s complaint of assault from one of your employees.

You didn’t see any of this coming, yet you need to manage these events.

These moments are significant and show how quickly your business can get out of hand once your core support team disappears.

“People” takes on its full meaning

Whether it’s marketing, finance or sales, companies have tangible measures in place to calculate ROI. However, it’s difficult to apply this value to people. There are too many variables and it could become really subjective.

However, while you can’t measure the results, you can certainly compare them. You can compare employees. You can compare their behavior. You can compare their results.

Let me share some questions:

  1. To what degree can your new employee ramp up quickly?
  2. How high up can your employee go?
  3. By what method can your employee  go higher than others over time?
  4. How long does your employee stay?

That’s ROI!

Growing awareness

You quickly become aware of the shortcomings because you see different results from different employees who work for the same company.

There are many remedies for you to look for:

  1. How robust is your on-boarding process?
  2. What’s your hiring process?
  3. How does your management help your employees to continue to grow?
  4. What’s your management style and culture? And how are they contributing to increase your employee’s tenure?

Beyond the break-even point

The break-even point is the point at which new employees have contributed as much value to your business as they have consumed from it.  Other things being equal, the better job you do at on-boarding, hiring, developing and leading, the higher your employee will be on the curve and the value created by your new higher will be so much higher than the value consumed.

Take this 5 minute quiz to identify what you need to do to increase the ROI on your people.





No HR Dept?
No Problem!

Sign up for tips on handling today's trickiest HR issues! 




Sign up for tips on handling
today's trickiest HR issues!

We respect your privacy :