The process of Return on Investment (ROI) is an effective measure of the contribution of Human Resource Management to an organization.

In this era of cut-throat competition and increasing economic pressure, the importance of having a measure of the contribution of HRD cannot be overemphasized. The process of ROI is an effective one to measure the benefits of HR programs. ROI helps HR professionals prove their contributions to the organization and enhance their influence within the organization, which even top managers acknowledge and appreciate.

Besides the HR department, the employees are also facing a stiff competition among themselves, to prove a positive ROI, for promotions, increments, and above all maintaining their jobs in today's world of cost reduction and downsizing.

As evidenced in a recent PDI survey of 122 managers across China, over 90% of the respondents reported experiencing an increased emphasis by their companies, on the need to clearly demonstrate the results to be expected from HR practices. The disconcerting finding is that 71% of the HR managers reported that their senior executives believe, they are not getting much demonstrable return from their company's HR initiatives. This kind of findings led to an increased attention on ROI by the HR community.

MBA Review Magazine, Return on Investment, HR Professionals, Human Resource Management, HRM, HR Professionals, PDI Surveys, HR Practices, Corporate Leadership Council, Human Capital, Decision-Making Process, Cultivating Leadership, E-learning and Development, Research Studies, Training and Development, American Society for Training and Development, ASTD, HR Analysts.