Various surveys conducted show recruiting costs running at approximately 1.5 times annual salary. The productivity lost as knowledge and skills leave an organization, and the capital required to replenish that gap, has a serious effect on even the biggest company's bottom line.

Retaining human capital significantly reduces these costs.

What makes one company more successful than another is not its product's features and benefits, but rather the emotional and practical benefits of the product or service. The one thing that creates a sustainable competitive advantage, and therefore ROI, is the people who represent the company. When it comes to people, research has shown time and time again, that employees who are engaged significantly outperform those that are not engaged.

Furthermore, customers have more faith in a company if the people representing it themselves believe in the product or service. In the fight for competitive advantage where employees are the differentiator, engaged employees are thus the ultimate goal.

Ultimately, an engaged human capital leads to better customer service. Increased customer satisfaction leads to increased profitability.