Opinion: What’s the ROI? A case for investing in people

Weston T. Wiebe

Ask any business leader what drives decisions, and you will hear the same question: What’s the ROI?

Return on investment is the lens through which capital projects, acquisitions and new initiatives are judged. If one dollar in does not produce more than one dollar out, the math rarely works. In today’s business environment, that return is often expected to translate into shareholder value or bottom-line growth.

But not every ROI can be measured on a spreadsheet. Some of the most important returns are harder to quantify. Yet over time, they generate outcomes that no business can afford to ignore. Chief among them is the ROI of investing in people.

ROI you cannot ignore
When leaders view employees as costs to minimize rather than capital to grow, short-term savings often come at long-term expense. Turnover rises, morale drops and the best talent leaves. By contrast, organizations that invest in people see dividends that compound over time.

Gallup’s research shows that highly engaged business units achieve 23% greater profitability than their peers. Engagement does not happen by accident. It happens when leaders intentionally build cultures where employees feel valued, supported and connected to the mission.

No, you may not be able to measure it as “$1 in, $2 out” in the same quarter. But ask the companies that lead in retention, customer satisfaction and innovation, and they will tell you: The return is undeniable.

Stretching, not copying
It is important to be realistic. Not every company has the resources of a Fortune 500 firm. Smaller businesses cannot always afford extensive benefit packages, corporate gyms or large training budgets. But that does not mean they are excluded from investing in culture.

This is not a one-size-fits-all formula. Each company has to find the steps that fit their size and resources. The challenge is to stretch, not to copy. Even modest efforts can have an outsized impact when they are intentional.

Practical steps that pay off

1. Onboard with purpose. Even the smallest business can introduce new hires to mission, values and colleagues instead of treating the first day as paperwork only. That early connection builds loyalty.
2. Invest in growth. Training does not have to mean tuition reimbursement. It can be mentorship, cross-training or opportunities to learn new skills on the job. Employees who grow, stay.
3. Prioritize wellness and flexibility. Small adjustments (a flexible schedule, a personal day policy or simply checking in on employee wellbeing) go a long way in showing care.
4. Create recognition and voice. Celebrating wins does not cost much. Neither does asking employees for feedback and acting on it. These simple steps boost engagement and trust.

Culture as strategic capital
Culture is not built on slogans. It is reinforced through the daily practices and policies leaders put in place. Consider:

• A shared leave program can be scaled to any size, allowing colleagues to support one another in times of need.
• Sabbaticals might be out of reach for smaller firms but offering a few extra days after years of service still communicates value.
• Moving from rigid accruals to more flexible earned time off may not cost more, but it signals trust.

These may look like costs on the ledger. In reality, they are investments in culture — the form of capital that pays the highest dividends over time.

A CFO’s challenge
As a chief financial officer, I will be the first to say: ROI matters. But it is time to expand what we mean by return.

Keep asking: What’s the ROI? But also ask: What is the opportunity cost if we don’t invest in our people?

The payoff may not show up next quarter, but it will show up — in retention, performance and loyalty. Whether you employ 20 people or 200, investing in culture delivers dividends no organization can afford to miss.

Weston T. Wiebe is chief financial officer and vice president of finance and administration at College of the Ozarks. He can be reached at wwiebe@cofo.edu.