Performance Measurement in Healthcare: Applying ROI to Human Capital Investments

Dadd, Deneise and Hinton, Matthew (2021). Performance Measurement in Healthcare: Applying ROI to Human Capital Investments. In: British Academy of Management Conference Proceedings, British Academy of Management.


Practitioners are faced with continuing calls to demonstrate value for money and impact on their spending to improve performance. Many of these improvement initiatives are geared towards people, the human capital within the organisation. Consequently, there appears to be an increase in the use of financial metrics, and in particular, the return on investment (ROI) to demonstrate a return on investing in human capital. However, academic research on how these metrics are learnt and applied in practice has lagged behind. This development paper reports on a study exploring how ROI is being learnt and applied within a healthcare organisation. It highlights the challenges faced and shares some of the practices employed to address these challenges. These included improved project management skills, fostering appropriate stakeholder engagement, and identifying behaviour that needed to be changed.

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