Return on Employee Investment (ROEI)

Return on Employee Investment

The right solutions to streamline your business

Why are some companies thriving while others struggle to stay in business? What is the distinctive difference between a good company and a truly great company? The answers to these questions can only be found when looking at what defines the company: its people. The people that make up a company are that organization's unique and biggest asset. For most businesses, the workforce is also its largest expense, or better put, its largest investment.

At Sage, we believe that employees are the most important component in the quest to improve business results. It makes sense to treat employee related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return. We call that the Return on Employee Investment™ or ROEI™.

Most executives would be the first to tell you that the success of their businesses depends on their employees. People are a critical asset that needs to be cultivated and properly managed. Without the right employees, businesses will not grow, become more profitable, or generate new ideas. In this context, it is only logical to conclude that a company's workforce is not merely a necessary expense, but also an investment in future competitiveness and earnings. Much research supports the idea that keeping employees engaged and motivated, as well as retaining the best performing employees over the long term, have positive effects on corporate financial results.

Investing in employees affects the bottom line in two ways. First, it reduces employee turnover, sick leave and healthcare costs. Second, investments in employee engagement programs, training, talent management, information and decision support, communication, wellness programs and technology all have a positive effect on workforce performance and productivity.

Investing in an HRMS system, integrated with performance management, learning & training, tools for decision support, self-service portals and more is an investment in the most important asset of the organization: its employees. And the return on the investment in employees can turn a struggling company into a winner.

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ROEI
Nexus: G-WEBCD6