Employee Engagement ROI Calculator
Instantly estimate your performance management ROI using our free, easy-to-use performance management calculator.
Key Metrics for Employee Engagement ROI
Employee Productivity
Increased engagement leads to increased productivity which often means higher profitability as employees complete more work in less time. This is a critical metric for evaluating the ROI of employee engagement programs.
Employee Retention Rates
Employee retention rates measure how long employees stay with a company. High retention rates usually indicate that employees are satisfied and see a future with the organization.
Absenteeism Rates
Absenteeism rates measure how often employees are absent from work without a valid reason. High absenteeism can signal several workplace issues that need to be addressed: low employee engagement, dissatisfaction, or poor working conditions.
Practical Tips for Improving Employee Engagement
Regular Feedback and Communication
Encourage managers to provide consistent feedback to employees. Have regular check-ins or meetings to openly discuss and make plans toward their goals and challenges, and to recognize their achievements.
Recognition and Rewards Programs
A performance review program that regularly recognizes your employees for their hard work can impact morale. Meaningful rewards that can motivate your team include bonuses, gift cards, or extra time off.
Professional Development Opportunities
When employees learn new skills they feel more valuable. Create opportunities for them to upskill by offering workshops, training sessions, or online courses.
Explore Your Potential ROI with PerformYard
Our ROI calculator can help you quickly estimate the financial impact of implementing PerformYard in your organization. Once you've input your data and discovered how improved employee engagement can lead to significant savings and a more efficient workforce, schedule a demo to get started.
FAQ
Frequently Asked Questions
How do I use the employee engagement ROI calculator?
To use the calculator, enter the number of employees at your company, their average salary, the turnover rate, and current engagement levels. Our calculator will analyze these inputs and estimate the potential return on investment from efforts to improve employee engagement through various strategies and initiatives.
What are the key metrics for measuring employee engagement?
Key metrics for measuring employee engagement include turnover rates, absenteeism, productivity, employee satisfaction scores, and the costs of hiring and training new employees.
Why is employee engagement important for ROI?
Employee engagement is important for ROI because engaged employees are more productive, stay longer with the company, and create a positive work environment. Higher engagement levels can reduce costs related to employee turnover and boost overall company performance, leading to better financial returns.
How often should I calculate my employee engagement ROI?
We recommend calculating your employee engagement ROI at least quarterly or after introducing new initiatives to track their impact and make any needed adjustments to your engagement strategies.
How does PerformYard calculate the results?
Formulas are created using industry research and PerformYard data. We expect a 5% reduction in turnover rate, a 5% increase in employee productivity due to increased engagement, and a 20% reduction in HR working hours spent on employee engagement when using PerformYard. We also expect that HR spend about 210 hours per year on employee engagement initiatives, and that replacing an employee costs 100% of an employee’s salary.
Savings due to reduced turnover = (Average Annual Salary) x (number of employees x turnover rate) x .05.
Savings due to improved employee performance = Number of Employees x (Average Salary / 2080 working hours) x (2080 x .05)
Savings due to increased HR productivity = (Number of HR people x Average HR Salary) / 2,080) x 210 x (.1 x Number of Managers) x 0.2
