Studies have linked increased employee engagement to better productivity and reduced turnover – but what about its impact on your financials? Because we’re constantly asked about the returns of investing in the employee experience, we created a tool to show you the direct impact that improving your employee experience can have on your bottom line.
“The ROI calculator was designed to support the financial benefit of capturing employee feedback and improving existing business processes based on that feedback,” says Justin Zawaly, Talmetrix COO. “Typically we don’t hear anyone arguing that a better work environment and culture is a bad thing; however, being able to put a dollar figure to the impact helps to solidify the story to the C-Suite.”
We created our proprietary ROI calculator to measure three key data points: turnover rate, cost to replace an employee, and how increasing engagement can reduce turnover rate. If you don’t know these costs for your company, you can also use industry benchmarks to estimate your ROI.
“The ROI calculator typically elicits two responses. The first is ‘Thank you for helping me to put a dollar figure on the impact of an engaged workforce.’ And the second is ‘I knew it cost us money to replace voluntary turnover, but now that I see the data in front of me, I didn’t realize it cost us this much,’” says Zawaly.
The information that went into building the ROI calculator was drawn from Gallup, where experts have studied employee engagement of more than 30 million employees. Ayusman Vikramjeet, who built Talmetrix’s ROI calculator, says this helps provide the best estimates possible.
“Gallup has been doing this study for 30 years, so we feel confident that it’s the most accurate information out there,” he says. “And since the other information is drawn directly from the user, it’s very accurate.”
If you’re wondering what cost savings may look like for your organization, this month is the best time to find out. For all of February, we’re offering Talmetrix blog subscribers the opportunity to take advantage of our ROI calculator, completely free of charge. Simply email us with the Subject Line ROI, and we’ll tell you what your return on investment could be from using Talmetrix. Some of the results have even shocked the creator of the calculator.
“It’s surprising to see how much it costs to replace an employee varies from industry-to-industry and skill set-to-skill set,” says Vikramjeet. “For example, it’s very hard to replace a highly skilled employee. Talmetrix can help companies know when they’re highly skilled employees are at risk of leaving.”
Interested in learning more about our data scientist and what all went into the ROI calculator? Check the blog later this week to get to know Ayusman! And don’t forget to reach out today to take advantage of our free offer to use our ROI calculator – limited time offer.