3 ms·
It's not the appropriate number. Profit margin makes more sense. ROI is useful in a case where you make an expenditure now, and get back money (or savings) in
by byrneseyeview 17y ago
It's not the appropriate number. Profit margin makes more sense.
ROI is useful in a case where you make an expenditure now, and get back money (or savings) in the future. For example, you automate shipping for $1 million, and save $300,000 a year, for an ROI of 30%.
It doesn't work for employees, except to the extent that you're taking an up-front hit ("We paid for her to get a Master's degree") in exchange for something else ("Now she's more productive").