ROI

Organisations investing heavily in fostering a happiness culture see a good return on investment.

• Happy employees are productive employees and productive employees generate more profit.
• Happy employees don’t look to jump ship. This cuts recruitment costs,...

Companies will need to measure the return on their investment in employee skilling. 

For instance, the cost of giving employees new skills compared to the cost they would have spent on hiring. The expense should include the opportunity cost of waiting to hire.

Given the difficulty of quantifying the probability of loss, investors who want some objective measure of risk- adjusted return— and they are many— can only look to the so- called Sharpe ratio. This is the ratio of a portfolio’s excess return (its return above the “riskless rate,” or the rate on ...