Categories: Machinery Maintenance,Other Topics

Return on Employee Investment (ROEI)


By on April 10, 2020

Company assets require a wise and balanced investment from cradle to grave.  Otherwise, the asset will not consistently perform to required expectations, deteriorate over time and return limited value to stake holders as a result.  Companies put a lot of strategy and effort to obtain the greatest Return on Capital Employed (ROCE).  ROCE is a very important financial metric, because it shows the value of business gains versus assets and liabilities. A company cannot return value back to stake holders with an unhealthy ROCE.

Companies often fail to understand that employees are also assets and require strategic investment and talent management throughout their employment.  Otherwise, just like any other asset, the employee will not provide a Return on Employee Investment (ROEI) to stake holders.

The methodologies used when training employees is very important to ensure the company and employees gain the greatest value from training.  It is so easy to take a “Death by PowerPoint” approach during a training course.  However, statistics show that this method is not always the best approach when learning comprehension and retention are considered.

Employees learn differently based upon their individual learning type (visual, auditory, reading/writing or hands on).  Fortunately, technology advancements allow us to utilize many different methods to help ensure that our employees learn in a way or combination of ways that is best for them as an individual.  The result is an employee that is better qualified to do their individual job functions and provide the greatest return possible to the company.  Not to mention that a better trained employee is a safer employee!

A blended learning approach is best and uses a combination of learning methods to help ensure individuals:


–        Instructor led training

–        E-learning


–        Hands on exercises

–        Coaching

–        Verification of skills learned


–        Equipment improvement projects that show a return to company, reinforce specific concepts taught and verify individual learning.

About the Author

Trent Phillips has worked for many years creating and managing reliability programs and in the development of condition monitoring technologies. Trent has several certifications in condition monitoring technologies and equipment reliability. Currently Trent is the Global Reliability Manager for Novelis, Inc.

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