In one of my interview, one HR professional remarked. "It is hard to justify the costs incurred". Costs, the enemy of HR and training professionals.
In today's blog we divide the section into two parts. Today I will cover part A.
HR professionals go through a lot of internal conflict when it comes to costs. They are not able to understand that all the money that goes in HR is it a costs or an investment.
They try to argue that the management considers all HR activities as costs. And I counter argue that management will not consider HR activities as costs unless you show the monetary returns.
And unless you prove the monetary returns, all work that HR does will be considered as activities.
Let me ask you a question
Make a list of all things you consider as costs for a training program?
Now compare them with the following costs ...
Costs are divided into 4 categories
1. Analysis costs
2. Development costs
3. Delivery costs
4. Evaluation costs
1. Analysis costs: These include, all the costs that is incurred for analysis of the intervention. Salaries of HR and managers involved, travel costs, any other miscellaneous expenses, consultant's involvement if any.
2. Development costs: Such costs include salaries of people involved to develop the intervention, development of training material, printing, cost of stationary, travel costs, miscellaneous expenses.
3. Delivery costs: Salaries of HR involved, consultant/ agency fees, salaries of participants, venue, overheads, travel costs, miscellaneous expenses.
4. Evaluation costs: This includes salaries of HR doing evaluation of the interventions, managers salaries, agency fees if any, travel costs, miscellaneous expenses.
In my experience, most of the HR professionals take into account only delivery costs. Please note in any ROI evaluation, there are many costs that are incurred, and we want to leave no stone unturned or the management questioning us why a certain cost is not taken into account.
Once you fit the ROI process, you will be amazed to see the results and the returns, that the costs that is incurred for any intervention will be negligible.
For details of costing keep watching my next blog...
Do write to me for any feedback or queries on wagle.sonali@gmail.com
Happy investing....
www.exponentialadvisory.co.in
In today's blog we divide the section into two parts. Today I will cover part A.
HR professionals go through a lot of internal conflict when it comes to costs. They are not able to understand that all the money that goes in HR is it a costs or an investment.
They try to argue that the management considers all HR activities as costs. And I counter argue that management will not consider HR activities as costs unless you show the monetary returns.
And unless you prove the monetary returns, all work that HR does will be considered as activities.
Let me ask you a question
Make a list of all things you consider as costs for a training program?
Now compare them with the following costs ...
Costs are divided into 4 categories
1. Analysis costs
2. Development costs
3. Delivery costs
4. Evaluation costs
1. Analysis costs: These include, all the costs that is incurred for analysis of the intervention. Salaries of HR and managers involved, travel costs, any other miscellaneous expenses, consultant's involvement if any.
2. Development costs: Such costs include salaries of people involved to develop the intervention, development of training material, printing, cost of stationary, travel costs, miscellaneous expenses.
3. Delivery costs: Salaries of HR involved, consultant/ agency fees, salaries of participants, venue, overheads, travel costs, miscellaneous expenses.
4. Evaluation costs: This includes salaries of HR doing evaluation of the interventions, managers salaries, agency fees if any, travel costs, miscellaneous expenses.
In my experience, most of the HR professionals take into account only delivery costs. Please note in any ROI evaluation, there are many costs that are incurred, and we want to leave no stone unturned or the management questioning us why a certain cost is not taken into account.
Once you fit the ROI process, you will be amazed to see the results and the returns, that the costs that is incurred for any intervention will be negligible.
For details of costing keep watching my next blog...
Do write to me for any feedback or queries on wagle.sonali@gmail.com
Happy investing....
www.exponentialadvisory.co.in
No comments:
Post a Comment