Welcome to the bonus lecture. When an organization makes investment in the talent management, it would naturally expect to see the return on investment or ROI. So how is the ROI measured? Three major factors could be considered for measuring the ROI. These would differ depending upon the parameters that a business uses to measure the returns. So this means that ROI metrics can differ from business to business and even from industry to industry.

Let's see the three factors. First is financial results and performance. Every business needs profits and revenue. This is the first reason why they actually exist, that is to earn profits. Even though profit is dependent upon many factors, you could notice a significant increase in the profit and revenue statements once the talent management starts working correctly. So this is the number one metric that can be used to measure the ROI on talent management.

Next is business value and performance. Profits would increase only when a business could satisfy its customers as well as clients. So, a good way to measure the ROI is to check the customer satisfaction, increase in the number of customers or increase in satisfaction level of declines. business performance can also include beating your competition and staying ahead in the industry. Third is workforce. If a company retains the top performers, it would expect them to provide better results in terms of performance, you can check the growth development of the employees.

You can also compare their before and after levels of productivity, efficiency and effectiveness if they have gained knowledge skills and are able to deliver better results, this means the investment that was made in talent management has started to get the results once the talent when, once the talent management solutions are implemented in the organization, these metrics can be used for measuring the return on investment on it. Some companies like to do a quarterly or even a monthly review, but it should be kept in mind that talent management returns cannot be witnessed in the early stages. So it's best to do the investment and check the results and evaluate them later on. So, the key takeaway here Is that sometimes it could be difficult to measure the return on investment because talent management is a long term investment. And it's also a continuous process. So even though the results may not show too early, it is a truly worthwhile investment that any business should make.