A business perspective on ROI and risk management in human capital development

Abstract: Human capital development (HCD) improves employee development, which improves business results. HCD is measured to prove business impact. Organisations in Africa and South Africa are challenged when calculating ROI in HCD interventions. This article presents the business perspectives on HCD benefits, highlighting the ROI and risk aspects. The argument is that although there are productivity, customer satisfaction and competitive advantage benefits to HCD, if the ROI is not calculated the impact on business results remain elusive. It is only when HCD risks are measured and managed that HCD manifests a positive impact on business results. The contribution of this article is to add to the body of knowledge on HCD, ROI and risk measurement in the African and South African context. The practical contribution is the highlighted business benefits of effective and efficient HCD management. The article allows HCD managers to embrace business innovation in their human development strategy