The employee experience opportunity & ROI calculator
This tool is designed to help demonstrate the business case for investing in your people and secure the budget necessary to make a real difference.
What it is and why you need it
Ultimately, businesses are mostly focused on competitive advantage, growth, and profitability — but these can't be measured via the 'fluffy stuff', such as clicks, views, and engagement rates. The golden goose is to correlate EX activities to the bottom line. So, the EXOpportunity Calculator™ lets you share with your own senior leaders the impact of a motivated, productive workforce.
Senior leaders and budget holders love numbers, and the calculator will allow you to build a business case based on your specific organisation that is backed up with real numbers. The beauty of it is that it is not generic; you can use data about your own organisation.
How to use it
To get the most accurate result, you will need to have undertaken a mojo motivation mapping exercise at your organisation. In lieu of those figures, you could do an indicative calculation using the average motivation percentage of 65%, or substitute the motivation % with satisfaction % levels. (As there's no proven correlation between satisfaction and motivation, you couldn't use this as a 'real' figure.)
A substitute figure still shows immediately how the calculator works and the potential opportunity that comes from investing in your employees' motivation and experience. Motivation is integral to productivity, which is why it forms part of this calculator.
What the calculator considers
| Metric | How it is derived |
|---|---|
| Number of employees | Total headcount for your organisation |
| Average salary | The average across your organisation |
| Annual revenue | The actual number for your organisation |
| Average revenue per employee | Annual revenue ÷ number of employees |
| Churn rate % | The exact number for your organisation |
| Motivation % | The organisation-wide score from mojo maps |
| Total salary costs | Employees × average salary × 1.2 (to allow for employer NI) |
| Lost productivity at cost | Total salary costs × (100% − motivation %) |
| Lost opportunity / capacity | Annual revenue × (100% − motivation %) |
| Recruitment costs | (Churn % × employees) × average salary × average recruitment cost |
| Sickness & absence costs | Taken from the CBI calculations |
A seemingly small percentage shift in motivation and productivity can have rather large financial implications for businesses of all sizes. Armed with a compelling ROI calculation for your organisation, you can have powerful conversations with senior leaders to secure support and budget for EX improvements.