Why should you care? Whether we know it or not, whether we like it or not each of us has a personal value rate in our jobs.
Figuring out your personal rate of return can come in very handy during performance reviews, resume building and job interviews. The value is self explanatory but the effort requires you to keep track of all your deposits and withdrawals, also known as your personal “score card”. However, for a quick and simple estimate of your personal returns, try this:
- Initial Balance (Total Compensation; Includes Salary and all Benefits, 401K matching, etc) …Plus (+)
- Total Deposits (All your contributions quantified in dollars) …Minus (-)
- Total Withdrawals (What you have taken from the business or department quantified)… Equals (=)
- Final Balance
- PRR is the difference expressed in terms of % between your Initial Balance and your Final Balance.
- Start with your initial balance. This is is typically considered your full loaded labor rate (LLR). Salary + All Benefits.
- Keep track of all Contributions or “Deposits” you made over the course of the year and enter your total. This is the tricky part. Quantify as much as possible the impact your actions, skills, knowledge and ideas have had on your business or department. Examples; Did you bring in new business? Save customers from cancelling? Cut expenses with a new idea? Improve efficiency with an improved process thus saving time, money, resources?…what would these things be valued at in dollars and cents? Talked to HR, Sales, Manufacturing, other departments to get your numbers.
- Tally all withdrawals. For example, ask yourself how much did you actually “take” from the business or department. If it is just your salary and benefits and both were in line with what was given without any abuse or increase then some would call that a “break even”. If on the other hand, you used excessive sick days, late to work, lost customers, didn’t meet objectives for whatever reason, exceeded your budget expenses…then tally what these items would equate to in dollars and cents. That’s it.
- Get your final balance. At the end of the year, tally your final balance. This would be your initial balance (starting salary at beginning of year plus any benefits) plus your total deposits or contributions, minus any withdrawals or costs incurred by you.
- Determine the time frame (1 year as example but can many years) between your initial and final balances.
- Calculate you Personal Rate of Return.
For example, let’s say that you start with $100,000 on 1/1/15, and end up with $120,000 on 1/1/16. If you had net deposits of $20,000 during the year and withdrawals of $10,000 your estimated Personal Rate of Return would be 10%.
Nothing can be more important than taking stock in yourself, understanding your value in quantifiable terms that Sr. Management understands and aligning your contributions to the growth of the company.
GCT is a professional learning company specializing in Call Center, Field Sales, and Executive Development. Reach us at (954)536-3736. We’re hear to listen. www.gctraining.com