Return on Investment (ROI) in HR

Return on Investment (ROI) in HR measures the value gained from HR initiatives relative to their cost. It helps organizations assess whether investing in activities like training, recruitment, or employee engagement improves performance and productivity. Essentially, HR ROI compares the benefits—such as higher employee retention, better skills, or increased output—to the expenses involved. A positive HR ROI indicates that the investment yields more value than it costs, supporting smarter decision-making and demonstrating how HR efforts contribute directly to the company’s success.