Which strategic HR metric evaluates the total financial return generated by investment in employee development relative to the overall cost of training programs?
ACost-Benefit Analysis
BReturn on Investment (ROI)
CEconomic Value Added (EVA)
DHuman Capital ROI
Explanation
• Training ROI formula: $text{ROI (%)} = frac{text{Net Financial Benefits} – text{Training Costs}}{text{Training Costs}} times 100$.
• It provides hard quantitative evidence to executive leadership regarding the financial value generated by HR development programs.
Exam Relevance
- Topic: HR Metrics & Analytics
- Subtopic: Training ROI
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