Employee ROI

source: http://sdgmag.com/article/business-marketing/long-view-employee-roi

 

When looking to invest in an expensive new piece of printing or finishing equipment, sign shop owners and commercial graphics providers know that calculating the expected return on investment (ROI) is a crucial step in making the buying decision. Equipment manufacturers are more than happy to give you an ROI estimate to help you decide, but those figures can be “rosy” and often should be taken with a grain of salt.

So after the purchase, the smart managers “follow the money”—measuring their equipment payment schedule and cost of operation/maintenance against the income generated by the machine’s output in order to calculate when the machine has actually paid for itself and become a profitable investment.

But what about the ROI of your employees? Shop owners invest in training, salary and insurance for full-time employees, but do they actually measure whether each employee has a positive ROI for the company? I mean, if you’re running a business and paying to employ people, it seems like a good idea to measure their impact.

 

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