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Employee Experience ROI calculator

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Prove how culture pays. Try our ROI calculator.

Building the business case for culture starts with quantifying its value. Estimate the value that Culture Amp could bring to your company’s bottom line, based on Forrester’s Total Economic Impact™ (TEI) study.

Build your business case for culture

These results are based on insights from the Culture Amp Forrester Total Economic Impact™ (TEI) study.
Your results estimate the value you can realize in the first year of implementing Culture Amp, based on the following:

  • Cost benefits from reduced attrition: Reduce attrition rate by 5% and save on employee replacement costs (estimated at 20% of average salary).
  • Managerial efficiency gains: Boost manager productivity by 20% with improved coaching and performance management.
  • Productivity uplift for HR: Increase HR team productivity by 20%, enabling more strategic focus for organizational growth.
  • Enhanced profitability: Achieve 0.5% higher profitability via increased employee engagement that enhances customer experience and operational efficiency.
How are results calculated? ↓

Improving employee engagement by up to 20% contributes to

311%

ROI

1.5%

increase in profitability

20%

increase in Manager and HR team productivity

5%

decrease in attrition and related costs

Data for a composite organization over three years in the Forrester study

Forrester report

Get the full study

Get the full study, The Total Economic Impact™ of Culture Amp, to learn how we help organizations leverage culture to achieve their business goals.

This is a commissioned study conducted by Forrester Consulting on behalf of Culture Amp, published in February 2024.

Frequently asked questions

Find out how we calculated our results

How did we approximate the cost to replace the employee?

The 20% of annual salary cost to replace an employee number comes directly from the Culture Amp customer interviews conducted by Forrester.

Data collected from these companies provided benchmarks on the costs they incur to replace talent. Typical expenses that comprise this 20% cost include severance payments, HR labor for offboarding tasks, recruitment marketing and agency fees, screening costs, hiring manager time, onboarding and training programs, ramp up time to full productivity, and lost work during vacancy periods. Please note that the exact costs fluctuate across companies.

Formula: Cost to Replace an Employee = Average Annual Salary × 20%

What do we mean by average annual salary?

The average annual salary refers to the mean yearly income earned by employees in the organization. The average annual salary encompasses all forms of monetary compensation, including base salary, bonuses, overtime, and any other financial benefits employees receive over a year.

How did we determine the improvement in attrition rate?

The 5% improvement in attrition rate was determined based on Culture Amp customer interviews conducted by Forrester.

These interviews revealed a consistent theme: organizations experienced a significant reduction in their attrition rates after implementing Culture Amp.

How did we calculate the projected number of additional employees retained?

The projected number of additional employees retained was calculated using the formula: Total Employee Attrition × Attrition Reduction = Avoided Employee Attrition

The 5% improvement in attrition rate was determined based on Culture Amp customer interviews conducted by Forrester.

How did we calculate the projected turnover improvement cost savings?

The projected turnover improvement cost savings were calculated using the formula: Avoided Employee Attrition × Cost to Replace an Employee = Turnover Improvement Cost Savings.

The 5% improvement in attrition rate was determined based on Culture Amp customer interviews conducted by Forrester.

What is net profit?

Net profit is a crucial financial metric that reflects the amount of income that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue. It's a clear indicator of a company’s financial health, showing what is left over from revenues after all the firm's costs are taken out. Net profit is sometimes referred to as the bottom line, net income, or net earnings.

Formula: Annual Revenue × Profit Margin = Net Profit

How did we calculate the profitability increase?

Profitability increase is calculated by comparing the change in net profit margin (net profit as a percentage of revenue) from before to after the implementation of Culture Amp. This figure comes directly from the Culture Amp customer interviews conducted by Forrester.

Formula: Profitability Increase = (Net Profit After − Net Profit Before) / Net Profit Before × 100%

What is productivity improvement and productivity recapture?

Productivity improvement and productivity recapture are key figures used to quantify the efficiency gains achieved through the implementation of Culture Amp. These metrics were estimated based on interviews with organizations using Culture Amp, as documented by Forrester.

Productivity Improvement: This refers to the percentage increase in efficiency that HR teams and managers experience when using Culture Amp's tools and features. It is calculated based on the observed reduction in time required to complete specific tasks, such as deploying engagement surveys, analyzing survey results, and developing strategic action plans. The improvement rate of 20% indicates that tasks are completed more quickly and effectively, allowing HR professionals and managers to achieve their goals with less effort compared to before the implementation of Culture Amp.

Productivity Recapture: This metric quantifies the portion of time savings that HR teams and managers can reallocate to other high-value activities as a result of the productivity improvements gained through Culture Amp. A recapture rate of 50% suggests that half of the time saved through increased efficiencies is redirected towards tasks that further contribute to the organization's strategic objectives, such as developing more targeted employee development programs or focusing on higher-level strategic planning.

How did we calculate the increased productivity of managers?

The increased productivity of managers is calculated by considering the portion of their time spent on coaching and performance management activities, the productivity improvement realized from using Culture Amp, and the portion of time recaptured for other value-added tasks.

Formula: Increased Productivity = Number of Managers × Portion of Time Spent on Coaching and Performance Management × Productivity Improvement × People Manager Salary × Productivity Recapture

The percentages for productivity recapture, productivity improvement, and the portion of time spent on coaching and performance management are derived from the Culture Amp customer interviews conducted by Forrester.

How did we calculate the increased productivity of the HR team?

The increased productivity of the HR team is calculated by assessing the proportion of their time dedicated to HR-specific tasks, such as employee engagement surveys and performance management, that is optimized through the use of Culture Amp. The calculation also considers the efficiency gains (productivity improvement) achieved with the platform and how much of the saved time is redirected towards strategic HR initiatives (productivity recapture).

Formula: Increased Productivity= Number of HR Team Members × Portion of Time Spent on HR Tasks × Productivity Improvement × Average HR Team Member Salary × Productivity Recapture

The percentages for productivity recapture and productivity improvement are derived from the Culture Amp customer interviews conducted by Forrester.

Culture Amp provides the ROI calculator as a free tool that uses information that you supply to provide an estimate for the potential return on investment of purchasing and implementing Culture Amp. The results generated by the ROI calculator are estimates only and should only be used as a guide to evaluate the potential savings and return on investment. Actual results will vary.The underlying financial model for this ROI calculator has been commissioned by Culture Amp and delivered by Forrester Consulting based on its Total Economic Impact™ methodology. Culture Amp created this tool and Forrester has not verified it for accuracy or certified its results. Although great care has been taken to ensure the accuracy and completeness of the model used in this tool, Culture Amp and Forrester are unable to accept any legal responsibility for any actions taken on the basis of the information contained herein. The tool is provided ‘AS IS’ and Culture Amp and Forrester make no warranties of any kind.

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How Nasdaq used Culture Amp data analytics to monitor for attrition risks

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