Return On Investment Calculator
The ROI calculator presented here represents three main ideas:
Please see a more detailed description of the calculator and the research behind it at the bottom of the page.
About the ROI Calculator
The HR Decisions ROI calculator presented here is based on the currently-accepted best method of determining the utility of personnel practices, or the extent to which rational personnel selection yields payoffs to the organization using them, in the metric of dollar gains to the organization. Research into the utility of personnel interventions has a long history, going back about 80 years. Today, we consider the Brogden-Cronbach-Gleser model (Brogden, 1946; Cronbach & Gleser, 1965) to be the most informative method of indexing the payoffs to the organization arising from rationale selection practices. Two additional factors should be pointed out here. First, the criterion-related validity values for the various assessment options in the calculator are largely those obtained in research conducted by HR Decisions Ltd., and published in the scientific literature. Second, the variation in the dollar-value to the organization of different levels of performance has been indexed by a method that connects this variation to employee salary. Based on all of these factors, the dollar values yielded by this calculator enable organizations to understand how much the organization can gain by the different levels of personnel assessment with their varying costs factored into the calculations.
This calculator produces two values of interest to the hiring organization:
Brogden, H.E. (1946), An approach to the problem of differential prediction. Psychometrika, 11, 139-154.
Cronbach, L. J., & Gleser, G. (1965). Psychological Tests and Personnel Decisions (2nd ed.). Urbana, IL: University of Illinois Press.
About the Assessment Methods
Our product line is designed to provide the optimal level of testing for the best return on investment. Entry level positions with a narrow description of responsibilities have less risk and less potential for overall benefits to the organization than more complex positions such as a top-level manager. We will help you determine the best assessment tools to use for specific placements.