HR Terminology Return on investment (ROI)

Complygate has put together a complete list of key HR terms, phrases, acronyms and jargon to assist HR professionals in navigating the extensive, ever-growing HR terminology. We would like to encourage you to read, share and make use of this terminology collection. If you have any suggestions of terms or keywords we have missed, please contact us and we will include them in our next update.

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Definition of return on investment:


  • Return on investment (ROI) is a measurement of performance used to examine the profitability or efficiency of an investment or a comparison between the efficiency of a number of lots of investments.
  • To measure ROI attempts to directly measure the number of returns on a certain investment, relative to the investment’s expenditure.
  • The calculation of ROI is the benefit or turn of an investment divided by the cost of the investment. The results are then turned into a percentage or a ratio.
  • ROI does not take into consideration the holding period or passage of time regardless of it being simple and straightforward. This then can result in missing an opportunity to invest costs somewhere else.
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