ROI Calculator

Our Calculation Basis

• Productivity Savings 6% increase in employee productivity

  Assuming that each employee contributes to value creation in proportion to their compensation, increased productivity enhances the overall contribution to revenue - proportional to personnel costs.

  A recent Gallup report shows that companies with highly engaged employees saw an average revenue increase of 18%. We conservatively estimate an increase of 6%.

  Calculation

  Productivity Savings = Number of Employees × Average Annual Salary × 6%
• Savings from Reduced Turnover 20% reduction in turnover costs

  Turnover costs include expenses for hiring and onboarding new employees, productivity losses, customer service and errors, training costs (invested in former employees), and cultural impacts.

  For an average company, investing in better employee processes reduces voluntary turnover by 31%. We conservatively estimate a 20% reduction in turnover. Additionally, turnover costs per employee typically range between 100% and 150% of salary. We assume 120%.

  Calculation

  Turnover Savings = Number of Employees × Average Annual Salary × (120% × input turnover rate × 20%)
• Savings from Reduced Absenteeism 18% reduction in absenteeism

  Absenteeism can be a symptom of low engagement and a warning sign for burnout. The gains or savings from reduced absenteeism are proportional to total personnel costs.

  Absenteeism costs range between 20.9% and 22.1% of total wage costs (direct and indirect costs, SHRM/Kronos study). We assume that about 11% of costs are due to unplanned, paid absences. A Gallup study also shows that teams or companies with high employee engagement can reduce absenteeism by up to 81%. We conservatively estimate an improvement of 18%.

  Calculation

  Absenteeism Savings = Number of Employees × Average Annual Salary × 11% × 18%