Do you consider your employees an expense of doing business or a profit-contributing asset?
Financially savvy business owners/CEOs understand the return on investment on human capital – viewing their employees as their most important business asset. They recognize that increasing the productivity of their employees can lead to more cash flow and increased profitability.
ROI on Human Capital
Let’s look at the revenue impact of improving an employee’s productivity by just 15 minutes a day.
In typical 40 hour work week, 15 minutes of non-productive, non-billable time equals .25 hours a day, 1.25 hours a week or 65 total hours a year. For a $3 million business, an increase of productivity of that magnitude translates to more than $93,000 annually.
Do you consider your employees an expense of doing business or a profit-contributing asset?
