Measuring talent ROI loss from performance-score inflation and faulty promotion mapping

Human capital is vital to organisational competitiveness, but performance evaluation systems have been plagued by rating inflation and wrong promotion decisions. Such distortions may result in ineffective allocation of talent and low organisational productivity. In this article, the authors analyse how performance-score inflation and poor mapping of promotions should affect talent return on investment (ROI). The study will suggest a conceptual framework for identifying and measuring talent ROI loss in organisations by analysing measurement techniques of human capital and workforce analytics practices. The framework incorporates performance data analysis, promotion evaluation, and productivity metrics to aid in evidence-based HR decision-making and more efficient talent management strategies.