Many printers regard staff as a cost of doing business. Actually, this perception is incorrect. Although the money spent on payroll could well be your largest cash commitment, a staff of properly hired and maintained employees can increase your profits far beyond their cost. Your staff is therefore an investment—easily the most important investment your business ever makes.

Most businesses in the printing industry have two major common expenses: equipment and personnel. Best practices suggest that when evaluating your capital equipment investments, you calculate exactly your return on investment (ROI). Often equipment manufacturers will help you determine your ROI on their equipment as a sales tool.

Considering your staff as human capital, can you measure your ROI equally effectively on your personnel investments? The answer is a qualified yes – even though personnel expenses can be unpredictable. Variables such as salary demands, employee benefits, education, training, and job market conditions can throw off projected employee budgets considerably. Also, since many returns on personnel investment do not result in a tangible product, their measurement requires more subtle calculations — but they can still be measured to a useful degree.