Why is it important to measure return on investment of international assignments? Which indicators can be used?
Answers
Measuring of Return on Investments of International Assignments
Explanation:
The company has to define the key indicators how to measure the success of the relocation strategy.
Most organisations seem to be unable to accurately measure or predict the return on investment for staff sent on international assignments.
The analysis of a series of interview conducted with key stakeholders of several multinational organisations let to many key findings.
No assignment specific objectives set and measured within the performance management process
Cost reduction initiatives but no benefits measurement - No calculation of ROI on assignments
It is important to measure return on investment on international assignments because it is a key performance indicator
• Measuring return on investment is frequently used by businesses to determine the profitability of expenditure. It's remarkably useful for measuring success over time and taking the estimation out of making future business decisions.
• It is used to evaluate the efficiency of investment.