Use this Online Human Capital ROI Calculator Calculator to get the desired metric in just a few clicks or download a free template in Excel.
|Human Capital ROI Calculator|
|Non-Human Capital Expenses|
|Human Capital Expenses|
|Human Capital ROI :|
HCROI Calculator is an excel template with predefined formulas that will help calculate HCROI against the money spent on pays and benefits. Moreover, this template consists of both a simple calculation as well as a detailed calculation bifurcating each head.
What is Human Capital ROI?
Human Capital ROI or HCROI is an HR Metric that evaluates the financial value added by the workforce against the money spent on them in terms of salaries and other benefits.
How To Calculate Human Capital ROI?
HCROI = Revenue – Non-Human Capital Expenses / Human Capital Expenses
Non-Human Capital Expenses = Operating Expenses – Human Capital Expenses
Human Capital Expenses = Fixed compensation(salaries) + Variable compensation + Benefits + Indirect cost
Revenue = The adjusted revenue after deducting the cost of capital, depreciation, etc
Human Capital ROI Calculator Excel Template
We have created a simple and ready-to-use excel template for the Human capital ROI Calculator with predefined formulas.
In this template, you just need to enter the numbers against the respective cells and it will automatically calculate the HCROI for you.
Additionally, if you won’t don’t know the amounts of revenue, non-human capital expenses, or human capital expenses, you don’t need to worry. You can enter the direct figures from the annual reports of your company or books of accounts and derive the same.
You can download other useful HR Metrics Templates like Cost Per Hire Calculator, Training Spend Rate Calculator, Benefits Spend Rate Calculator, Employee Productivity Calculator, and many more from our website.
Let us understand how to use this Calculator in detail.
How To Use The Human Capital ROI Calculator Excel Template?
It is very simple to calculate the HCROI with this template. There are 2 sections to this template:
- HCROI Detailed Calculations
In this section, you require only 3 details to derive the HCROI.
- Non-Human Capital Expenses
- Human Capital Expenses
Just enter these amounts and it will calculate HCROI for you. But if you don’t have these figures directly available then you can use the next section.
2. HCROI Detailed Calculations
The Revenue is required to calculate the HCROI is the adjusted revenue after deducting the cost of capital, depreciation, interest, taxes, etc.
Similarly, Non-Human capital expenses are the expenses except that used for salary, compensation, and other benefits for the employees.
Whereas, Human Capital Expenses are the sum of salaries, compensation, benefits, and other indirect cost used for employees.
Furthermore, all 3 sections have been displayed differently and when you enter the respective figures it will automatically total each of them.
Lastly, using those figures it will calculate the Human Capital ROI according to the given formula.
What are the uses of HCROI?
Here are some uses of HCROI:
- To know the ratio of income derived against the total employment costs.
- To identify gaps in human capital.
- Helps evaluate which external or internal factors influence the productivity of their workforce.
- Helps to know whether the right leadership and managerial support are available to the employees to accomplish and align with the company’s business objectives.
This template can be useful to Business Analysts, HR managers, business owners, HR assistants, and also to HR Professionals.
We thank our readers for liking, sharing, and following us on different social media platforms.
If you have any queries or suggestions please share in the comment section below. I will be more than happy to assist you.