Return on Investment
This week I’ve been updating Unit 3 of the HRCP Program, which covers human resource development. I added a section about reporting training’s return on investment. It reads, in part:
Business managers expect to know the return they are getting for their investments. This is true of expenditures in training, just as is it for money invested in new equipment or technology. One of the ways human resource professionals can demonstrate the impact of training on the goals and objectives of an organization is by conducting return on investment (ROI) analysis and annually reporting the results to management, just as other business units report on their capital investments.
Such an annual report on training serves two important purposes. First, it justifies the training function by showing the value of training to the bottom line. Second, it helps the training department assess itself internally and make adjustments.
Training can be expensive, as those preparing for the PHR and SPHR exams can attest. If you combine the costs of study materials, review courses, and practice exams, and add the value of the study time invested, many HR certification exam candidates are spending several thousand dollars to get ready to take the exam. And that doesn’t include the fee for taking exam itself.
So, how can you get the best return on your PHR or SPHR preparation investment? Treat yourself like a business unit. Have specific study goals. Make reports to yourself on your progress. Squeeze every dollar’s worth out of your investment. Make sure you know what you need to know, then learn everything you can about it. Push yourself. Test yourself.
Oh, and pass. Most especially, pass the exam.