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  Sept 21, 2015  

Strategic HR Weekly "Sales" Tip #42

Illustrating ROI from HR initiatives

So let's say you're an HR consultant proposing $50,000 of HR services/deliverables to a 100 employee firm. Or maybe you're an HR department of 1 in that 100 employee company, and you're proposing hiring an HR assistant to do some of the lower level tasks bogging you down, so you can implement some strategic initiatives. Both of those proposals should show "the buyer" (upper level management) how the company will get a return on the $50,000 investment.

Key notes:

  • Obviously not all impact areas will have equal priority at all times in a company
  • The dollars in each area will vary by company, and even over time
  • Even in the same company, employment issues change over time, so what might not be high priority today might be very applicable tomorrow
Taking into consideration those factors, the picture below shows one way to illustrate ROI, in terms of how profits can be affected in return for spending money to improve HR's impact on the company.


Rob Blunt       View our profile on LinkedIn
President, 4-Profit-HR

phone: 866-868-5885