The ROI of Human Capital: Measuring the Economic Value of Employee Performance

By Jac Fitz-Enz | Go to book overview

6
The Next Generation of
Human Capital Valuation
Trends, Forecasts, and Predictions

In October 1996, doctors predicted that Lance Armstrong would
be dead from cancer in less than six months. In July 1999, he
won the Tour de France
.

Prediction is a fine but dangerous art. If anyone really knew with certainty what was going to happen tomorrow, much less a year or more from now, that person’s advice would be prohibitively expensive. I don’t claim for a moment to know with certainty what will happen tomorrow around human capital management. But I do know something about the variables and how they interact in predictable ways most of the time. From this, we can risk projecting future events with a betterthan-average degree of success.


Relationships and Patterns

You’ve heard the old saying: He has twenty years’ experience at the company—one year repeated nineteen times. Doing something over and over does not necessarily equate with understanding the intricacies of the task. Likewise, measuring something over and over does not necessarily guarantee that

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