Proving the ROI of Assessments: How Tomorrows Compass Translates Skills into Measureable Business Value
- Dr. Eric Albertini
- 17 hours ago
- 4 min read
In general, companies that use employee assessments experience a 24% increase in productivity and a 36% decrease in turnover.” Aberdeen Group: Assessment Driven Talent Strategies.
Executive Summary
In today’s economy, investment in talent is under intense scrutiny. Leaders are being asked not just to develop people - but to prove the business impact of those development efforts. For behavioral assessments, this means one thing: showing a clear line from skill measurement and development to measurable business outcomes.
This article provides a step-by-step, metrics-driven roadmap for calculating the Return on Investment (ROI) of Tomorrow’s Compass - our 12-skill behavioral capability framework. It’s written for decision-makers who want to link capability benchmarking, reduced turnover, performance gains, and engagement lift directly to return on spend.
The Stakes: Why Behavioral Assessments Need a Business Case
For years, behavioral assessments were viewed as “nice-to-have” tools for leadership development or team building. But the business environment has changed:
Investor pressure means every amount spent must produce a measurable return.
Workforce transformation demands measurable skill development to match evolving strategies.
Talent risk is now a top-tier business risk - skills gaps can stall growth and transformation.
Without a clear ROI framework, even the most effective assessment tools can be sidelined. Tomorrows Compass changes that by tying skill development directly to strategic performance levers.
Understanding Tomorrow’s Compass
Tomorrows Compass measures 12 future-critical behavioral skills, grouped into three strategic skillsets:
Dynamic Adaptability
Inquiring Mind
Adaptive Digital Intelligence
Embracing Uncertainty
Paradoxical Thinking
Strategic Problem Solving
Design Thinking
Dynamic Resourcefulness
Contextual Intelligence
Purposeful Focus
Agile Collaboration
Relational Influence
Digital Teamwork
Cross-Cultural Collaboration
Change Agility
These skills aren’t abstract, they directly support organizational priorities like growth, transformation, and productivity, making them ideal for ROI measurement.
The Four Core ROI Metrics for Behavioral Assessments
There are four measurable business outcomes that Tomorrows Compass impacts directly:
Capability Benchmarking
Reduced Turnover
Performance Gains
Engagement Lift
We’ll unpack each one with what to measure, why it matters, and how to calculate ROI.
1. Capability Benchmarking
What to Measure:
Baseline competency scores for each of the 12 Tomorrows Compass skills.
Follow-up scores 6–12 months after development interventions.
Team and/or Individual aggregate scores to see systemic shifts.
Why It Matters:Capability benchmarking identifies the skill gaps most likely to impact strategic goals. Tracking improvement in those areas shows direct ROI on targeted development spend.
How to Calculate ROI:
Step 1: Identify priority skills linked to business objectives (e.g., Change Agility for transformation projects).
Step 2: Track score improvement in those skills over time.
Step 3: Link improvement to business KPIs (e.g., faster change adoption rates).
Example:A regional sales leadership group scored 20% below benchmark in Contextual Intelligence. After targeted development, scores improved by 15% in nine months—shortening decision-making cycles by 23% during a high-growth market expansion. This time saved equated to $450,000 in opportunity value.
2. Reduced Turnover
What to Measure:
Voluntary turnover rates before and after Compass-driven development.
Retention rates of high-potential and critical-role employees.
Why It Matters:Replacing an employee costs 1.5–2x annual salary when you factor in recruitment, onboarding, and lost productivity. Retaining top performers delivers immediate cost savings.
How to Calculate ROI:
Step 1: Calculate baseline voluntary turnover and its associated cost.
Step 2: Implement Compass assessments and targeted development for retention-critical groups.
Step 3: Measure post-program turnover drop and convert saved headcount into cost savings.
Example:A financial services firm in South Africa used Tomorrows Compass to target Relational Influence and Purposeful Focus for high-potential managers. Voluntary turnover in this group fell from 14% to 7% saving R1,2 M in year-one replacement costs.
3. Performance Gains
What to Measure:
KPIs tied to Compass skills (e.g., project delivery speed linked to Dynamic Resourcefulness & Purposeful Focus)
Manager performance ratings pre- and post-development.
Reduction in error rates, rework, or missed deadlines.
Why It Matters:Behavioral skills often determine the efficiency of execution. Improving them reduces friction, accelerates timelines, and enhances quality.
How to Calculate ROI:
Step 1: Identify process or performance bottlenecks linked to skill gaps.
Step 2: Apply Compass insights to focus development on those skills.
Step 3: Quantify resulting performance improvement in cost or revenue terms.
Example:A product innovation team lagged in Purposeful Focus, leading to scope creep. Post-intervention, delivery lead time dropped by 12%, enabling a product launch that generated $800K earlier than planned.
4. Engagement Lift
What to Measure:
Employee engagement survey results—particularly on collaboration, trust, and growth opportunities.
Pulse surveys during change or transformation periods.
Why It Matters:Engagement is a proven driver of productivity and retention. Gallup data shows a 5% increase in engagement can yield a 3% lift in productivity.
How to Calculate ROI:
Step 1: Establish a baseline engagement score.
Step 2: Implement Compass assessments and targeted development in low-engagement teams.
Step 3: Quantify productivity gains from engagement lifts.
Example:In a global tech firm, Cross-Cultural Collaboration and Relational Influence development led to an 11-point engagement increase, correlating with a 4% yesar-on-year productivity rise.
Reporting ROI to the Board
To satisfy CFOs and boards, we work with our clients to combine all four metrics into a comprehensive ROI calculation. When presenting ROI, it is critical that the ROI conversation, connects skills to strategy:
Strategic Goal | Linked Compass Skills | Measured Outcome | Financial Impact |
Market Expansion | Contextual Intelligence, Change Agility | Faster market entry decisions | $450K opportunity value |
Cost Efficiency | Purposeful Focus, Dynamic Resourcefulness | 12% reduction in delivery time | $800K earlier revenue |
Transformation | Relational Influence, Cross-Cultural Collaboration | 11-point engagement lift | $3.4M productivity gain |
Beyond Numbers: The Strategic Advantage
While the ROI metrics prove financial value, Tomorrows Compass also builds strategic resilience:
Capability visibility for future workforce planning.
Leadership readiness for transformation.
Cultural alignment that supports retention.
These are the advantages that keep organizations agile in uncertain markets.
Final Thought
The ROI of behavioral assessments is no longer intangible. Tomorrows Compass delivers hard metrics and strategic impact—turning leadership capability into a measurable, defendable business asset.
In a world where growth, efficiency, and transformation all depend on people’s ability to adapt and perform, measuring—and proving—that capability is not optional. It’s the decision-maker’s edge.
