1. Frequently Asked Questions
  2. Employee Engagement Cost Analysis

Understanding Total Business Value

Understand the Total Business Value and Value Per Employee.

This is a great way to conclude the Projections of the Cost Analysis is to recap the total financial opportunity based on the impact that increased engagement will have on Revenue and Absenteeism, and Turnover costs.

The Total Business Value is included on the far left of the Cost Analysis under the Business Name.  This example has a total business value of $4,810,808, which represents the potential opportunity cost based on Revenue, Absenteeism, and Turnover. 

Here's the formula for Total Business Value:

  • Revenue Increase + Absenteeism Savings + Turnover Savings
  • $1,890.000 + $399,298 + $2,521,510 = $4,810,808

To give you a better idea of what this means on an individual basis, we also highlight the Value per Employee by dividing this overall number by on existing headcount.

Here's the formula for Value per Employee:

  • Total Business Value / Number of Employees
  • $4,810,808 / 290 = $16,589

This is a great transition to proposing engagement solutions to capture these financial upsides. By this point, most executives are now interested but they want to know how this problem is going to be solved, and this is when you can propose solutions to make employee engagement a part of your business strategy.

Employee Engagement Facts

Engagement has a ripple effect on business outcomes, and you can increase your competitive position in the market. Here are a few facts from Gallup’s latest comprehensive engagement study you can include in your presentation:

  • Highly engaged business units experience a 28% reduction in inventory loss and a 40% reduction in quality defects.
  • Engaged workers are more mindful of their surroundings. Work groups with engagement scores in the top quartile realize a 70% decrease in employee safety incidents in the workplace.
  • Work groups with higher levels of engagement achieve 10% higher customer scores and 20% increase in sales than those on the lower end.

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