As a follow-up on the article on Human Capital Return on Investment, below I have presented the Kamenitza chart.
HC ROI for Kamenitza, 2007-2011
The revenue chart (in green) reveals year-to-year variations, reaching a peak in 2011, with an overall upward trend. Total expenditures without remuneration costs (in blue) tend to follow the trend at a relatively stable pace except in 2007, when the company generated substantial income through sale of fixed assets. This means that Kamenitza’s managers are following a cost control policy with expenses tied to revenues. If we now look at remuneration costs (in purple), we can see two sharp increases in 2008 and 2009. The 2008 increase is combined with a substantial growth in headcount (the numbers in the blue cells). The 2009 increase is no good news as it doesn’t lead to any increase in revenue. The average remuneration costs per employee (not shown on chart) have been growing at a regular pace from BGN 1 301 for 2007 to BGN 2 026 for 2011.
Based on numbers alone, and without any knowledge of the company’s employee incentive systems, one can assume that in the period 2009-2011 the company has been encouraging higher performance among its employees, leading to an increase in revenue. With respect to HC ROI (the orange curve), following the rule that any number greater than one is an achievement and given the HC ROI uptrend, one may conclude that the company is doing fine, but whether this is indeed the case will depend on the management’s opinion and on results from comparisons with rivals.