Download Human Capital ROI Calculator Free Excel Template

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HCROI Calculator is an excel template with predefined formulas that will help calculate HCROI against the money spent on pays and benefits. Moreover, this template consists of both a simple calculation as well as a detailed calculation bifurcating each head.

This template can be useful to Business Analysts, HR managers, business owners, HR assistants, and also to HR Professionals.

What is Human Capital ROI ?

Human Capital ROI or HCROI is an HR Metric that evaluates the financial value added by the workforce against the money spent on them in terms of salaries and other benefits.

How To Calculate Human Capital ROI ?

HCROI = [Revenue – Non-Human Capital Expenses / Human Capital Expenses]

Where:

  • Non-Human Capital Expenses = Operating Expenses  – Human Capital Expenses
  • Human Capital Expenses = Fixed compensation(salaries) + Variable compensation + Benefits + Indirect cost
  • Revenue = The adjusted revenue after deducting the cost of capital, depreciation, etc.

How To Use The Human Capital ROI Calculator free Excel Template ? 

It is very simple to calculate the HCROI with this template. There are 2 sections to this template:

  1. HCROI
  2. HCROI Detailed Calculations

1. HCROI

In this section, you require only 3 details to derive the HCROI.

  • Revenue
  • Non-Human Capital Expenses
  • Human Capital Expenses

Just enter these amounts and it will calculate HCROI for you. But if you don’t have these figures directly available then you can use the next section.

2. HCROI Detailed Calculations

The Revenue is required to calculate the HCROI is the adjusted revenue after deducting the cost of capital, depreciation, interest, taxes, etc.

Similarly, Non-Human capital expenses are the expenses except that used for salary, compensation, and other benefits for the employees.

Whereas, Human Capital Expenses are the sum of salaries, compensation, benefits, and other indirect cost used for employees.

Furthermore, all 3 sections have been displayed differently and when you enter the respective figures it will automatically total each of them.

Lastly, using those figures it will calculate the Human Capital ROI according to the given formula.

What are the uses of HCROI?

Here are some uses of HCROI:

  • To know the ratio of income derived against the total employment costs.
  • To identify gaps in human capital.
  • Helps evaluate which external or internal factors influence the productivity of their workforce.
  • Helps to know whether the right leadership and managerial support are available to the employees to accomplish and align with the company’s business objectives.

Download and use Human Capital ROI Calculator Excel Template

To use this free printable Human Capital ROI calculator excel template, you should have Microsoft Office/ Microsoft Excel installed in your system.

After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software.

Once extracted, you can open the file using Excel and start entering data or customizing the template. You can customize the currency, color scheme, fields in this excel template as per your requirement.

Click the button below to Download Human Capital ROI Calculator Excel Template

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