Calculate the impact & ROI of your employee experience

Calculate your ROI

See how your employee experience may be impacting your bottom line

Execs and HR Leaders often cite the employee experience (EX) as a critical factor for business success, but struggle to quantify its financial impact. Use this calculator to build the business case for EX at your organization.

1/2

Calculate your ROI

?Input the number of employees for your firm, or the part of your firm, that you are considering.
?Enter the average annual compensation per employee including benefits.
%
?Enter your company’s annual revenue. If unknown, typical revenue per employee ranges between $100k and $200k.

Drive your culture conversation forward by connecting it to clear ROI

Median estimates and benchmarks from HRWins and other research provide you with credible and attainable dollar impacts aligned with most HR and EX initiatives such as: turnover, productivity, onboarding (time to productivity), absenteeism, and diversity & inclusion. This calculator can help:

  • Determine the range of potential value to your firm via company culture and engagement strategy
  • Introduce a common language about the value of company culture and employee experience
  • Establish the importance of company culture and employee experience to your company’s financial performance
2/2

Your return on investment results Your ROI results

Here is the ROI value for the following HR and employee experience initiatives based on the information you input.

Culture Impact on Turnover $0
Increased Productivity $0
Onboarding (time to productivity) $0
Absenteeism Improvement $0
Diversity & Inclusion $0
Culture-driven results for public businesses

In one study conducted by Harvard Business School and Kotter International, the long term financial performance for 200 companies was tracked over 20 years. Twelve firms with cultures of performance outperformed others in the following ways: 682% better in revenue growth, 901% better in stock price growth, and 756% better in net income growth.

How did HRWins calculate the results?

ROI – Culture Impact on Turnover
The cost of turnover has been estimated as high as 150% of compensation.1 This calculation uses a conservative annual cost of turnover calculation of 66% of compensation and incorporates a savings-based ROI using available research showing improvements of as much as 87%.2

ROI – Increased Productivity
Performance-based cultures have shown increased revenue as a result of increased employee productivity.3 This calculation leverages available research that reflects an increase in productivity for performance-based cultures from 15% to 20%.4

ROI – Onboarding (time to productivity)
Effective onboarding decreases employee ramp-up time to productivity.5 This calculation is based on research representing average increased productivity of 33% from effective employee onboarding.6

ROI – Absenteeism Improvement
Absenteeism is estimated to cost employers $1685 per employee annually.7 This calculation uses your annual cost of absenteeism calculation and incorporates a savings-based ROI using available research.

ROI – Diversity & Inclusion
Companies with employees that feel they are part of an inclusive and diverse culture have shown to have increased revenue.8 This calculation uses the increase in revenue associated with more inclusive and diverse work environments, according to available research.9

References

  1. https://www.americanprogress.org/wp-content/uploads/2012/11/CostofTurnover.pdf
  2. https://info.workinstitute.com/hubfs/2019%20Retention%20Report/Work%20Institute%202019%20Retention%20Report%20final-1.pdf
  3. https://www.amazon.com/Corporate-Culture-Performance-John-Kotter/dp/1451655320#ace-1639449406
  4. https://ceo.usc.edu/wp-content/uploads/2019/07/Performance-Feedback-Culture-Drives-Business-Performance-i4cp-CEO-002-1.pdf
  5. https://docs.wixstatic.com/ugd/0cbe87_664f8806dc694bd7b52246c2e0fe41c1.pdf
  6. https://www.glassdoor.com/employers/blog/hidden-costs-employee-onboarding-reduce/
  7. https://www.cdcfoundation.org/pr/2015/worker-illness-and-injury-costs-us-employers-225-billion-annually
  8. https://hbr.org/2018/01/how-and-where-diversity-drives-financial-performance

Drive your culture conversation forward by connecting it to clear ROI

Median estimates and benchmarks from HRWins and other research provide you with credible and attainable dollar impacts aligned with most HR and EX initiatives such as: turnover, productivity, onboarding (time to productivity), absenteeism, and diversity & inclusion. This calculator can help:

  • Determine the range of potential value to your firm via company culture and engagement strategy
  • Introduce a common language about the value of company culture and employee experience
  • Establish the importance of company culture and employee experience to your company’s financial performance

What’s next?

Get the companion report and start establishing the value of your company’s culture.

Connect with an employee experience expert to learn more

Let’s chat