The ROI Of Your Labor Force

There is real value in your workforce. By driving innovation in the front-line people-processes, human resources can attain the full heights of its strategic value.

Leading HR organizations have driven real returns by extending their reach to the front lines of people processes. As investors increasingly scrutinize measures like profit per employee and labor cost as a percentage of revenue, the need for HR to measure its business impact in dollars has never been more intense.

PwC Saratoga's annual study results show that workforce productivity, as measured by metrics comparing labor costs with revenue, increased in 2007. Labor costs as a percentage of revenue dropped to 28 percent, the lowest level since 2005. At the same time, revenue per FTE (full-time employee) grew to $355,358, an increase of almost 8% over 2006. These productivity figures suggest company leaders are successfully managing their workforce investment.