Indian companies pay a salary of Rs 4,80,000 to each of their employees on an average, but earn a profit of Rs 6,00,000 per employee in return, says a new survey. According to a study by Pricewaterhouse Coopers (PwC) — Measuring Human Capital – Driving Business Results — this makes the human capital return ratio on investment to 1.79 for organisations in the country.
Companies make an investment of Rs 7,000 on learning and development per employee. It further said that Indian companies make a pure profit of Rs 15 from every Rs 100-worth of revenue generated by each employee.
“With India being the fastest growing economy, organisations that would maximise their human capital contribution to business performance would be the ones to best leverage the positive economic environment,” said PwC India leader, People and Change practice, Sankar Ramamurthy.
Among sectors, engineering and manufacturing generate the most revenue and profits per employee followed by fast moving consumer goods and pharmaceutical space.