Get an introduction to the ROI Analysis and how it can help you measure ROI of engagement initiatives to gain executive buy-in.
The role of Human Resources (HR) has changed drastically in the past few decades, transitioning from administrative in nature to more of a strategic role. The closer that HR and the organization’s overall business strategies align, the more competitive companies can be when anticipating and responding to changes in the market.
The first step to aligning business strategies is to secure executive buy-in and show the correlation between HR initiatives and the company’s bottom line. Did you know that 90% of leaders think an engagement strategy has an impact on business success, but only 25% of them actually have a strategy?
That’s why we built the Employee Engagement ROI Analysis.
We want to equip HR leaders with research proven data to show the return on investment (ROI) of their engagement strategies to gain executive buy-in and move these strategies forward. We’ve found that executives like to clearly see the alignment between HR’s strategic position and organizational outcomes.
Download ROI Analysis
So, if you haven’t already, make sure you visit our ROI Analysis Toolkit to download your Free Employee Engagement ROI Analysis, Ultimate Guide to Gain Leadership Buy-In eBook, and receive the following tools to be prepared for any meeting:
- A branded one-page ROI Analysis overview to easily customize and present your results.
- A Reference Page highlighting all calculations and research sources.
- A Sparck Engagement Calculator to personalize results based on your company data. Learn more HERE.
This one-page summary is an invaluable resource to initiate the conversation with your executive team. With this data, you can ask your executives, “can we afford to lose our top employees?” With the Great Resignation and the Great Wait threatening your strategic roadmap, the answer will always be a resounding “No!”
The ROI Analysis doesn’t need to be just an organizational strategy, it can also be used to evaluate different departments and teams to see how an increase in employee engagement can impact their business performance. The opportunities are endless when it comes to engagement and should touch every part of your organization.
Tutorial Video: How to Use ROI Analysis and Calculator
Here's a tutorial video introducing you how to use the Sparck Calculator and the different features to help you complete your ROI Analysis.
How to Gain Executive Buy-In Using the ROI Analysis
We know how hard it is to get a pulse on the bottom line impact of employee engagement in your organization, so that’s why we created the Employee Engagement ROI Analysis. The ROI Analysis is designed to help business leaders like you get executive buy-in to invest in engagement strategies and create alignment between HR related initiatives and organizational outcomes. The closer that HR and the organization’s overall business strategies align, the more competitive companies can be when anticipating and responding to changes in the market.
This is where you get to show the financial upsides for your organization by investing in employee engagement. This company can save up to 4.8 million dollars. Think that would get your executives attention?
The top section of the ROI Analysis is the Projections section. Before granting buy-in, executives like to clearly see the alignment between HR’s strategic position and organizational outcomes. We recommend starting with the top three areas where your executives will see the largest financial savings with increased engagement:
- Revenue: Engaged employees are more productive, which makes the company more profitable!
- Absenteeism: Engaged employees take less time off of work, which also translates to higher productivity.
- Turnover: Engaged employees don’t want to quit! In our current climate, retaining your top employees is critical.
The bottom half of the ROI Analysis displays the Solutions. This section outlines the current business expenses and shows a comparative pricing list to introduce the most popular engagement investments to reap the financial benefits highlighted in the Projections.
- Estimated Reward Budget: If you don’t have a specific budget in mind, not to worry, you’re not alone! And we created the Sparck Calculator with you in mind. This tool provides a recommendation based on national averages for your organization based on the data provided.
- Estimated Disengagement: This represents the amount of money lost in employee productivity due to disengagement. It’s important to get a specific benchmark with an employee engagement survey (like Sparck’s Free #BeHeard Survey).
Now here’s the best part… This entire analysis can be done for you with the included Sparck Engagement Calculator. All you need to do is plug the data in and get the results to present to your executive team.
Next Steps:
- Go back to the ROI Analysis Toolkit to download the ROI Analysis Bundle and get equipped with everything you need to create, understand, and present your personalized ROI Analysis
- Learn how to use the ROI Analysis to get Leadership Buy-In and launch the #BeHeard Survey.
- Create your free account to get a benchmark on engagement with our FREE #BeHeard Engagement Report (no credit card or contract required).
- Present the #BeHeard Survey as an engagement solution to the leadership team.