top of page
  • Writer's pictureThinkSight

Pinpoint PEOPLE INVESTMENTS to Improve your Bottom Line

Your workforce can be a source of competitive advantage, but with labor costs rising, how can you determine where to reduce spending and where to increase your talent investments?

Try thinking of your workforce budget from an ROI perspective. Where can you make strategic adjustments to maximize a positive return and boost your bottom line?

Discover the financial impact of talent spending, and pinpoint where future dollars should go, with advanced metrics and people analytics.

Consider the following:

  • Productivity and labor cost optimization. Create productivity metrics to gather data on employee efficiency. This helps identify areas where fewer people might perform the same amount of work or where more talent is needed to improve productivity. Optimize your company’s labor costs by investing in retention for high-performing employees and focusing recruiting efforts on candidates with similar qualifications.

  • Value creation and ROI. When assessing your need for talent, think less about the number of employees you need and more about the value each employee or candidate creates. Use specific metrics to determine the actual and potential ROI you can expect from each current or prospective employee’s contribution.

  • Role categorization and analysis. Define key performance indicators (KPIs) by first categorizing each job role in terms of client facing vs. back office, revenue generating vs. operational support, and critical vs. non-critical. Then, determine useful performance metrics by analyzing the specifics of each job role in terms of value add, effect on overall team performance, and impact on company revenue and profitability.

  • Revenue and expenses. For a more complete perspective on your talent management strategy, consider financial and employee related metrics, such as revenue per full-time employee, profit per full-time employee, return on human capital investment, and total cost of workforce (TCOW) as a percentage of your company’s total revenue and expenses.

Your workforce is your most valuable asset. Invest in data-driven, people-oriented success metrics to drive better business results.

Visit for more on identifying the right metrics to achieve a better workforce ROI.



bottom of page