The ROI of Employee Engagement & Culture

Employee Engagement and Culture initiatives are consistently ranked as the #1 business priority for CEOs and CFOs because they directly impact the bottom line.

Engaged employees and a strong workplace culture raise profits by improving productivity (revenue uplift) and reducing employee turnover (cost reduction).

Businesses with toxic culture remain stuck in a loop of hiring and training, continually increasing salary and benefits to retain key talent. This strategy is not sustainable; it permanently drives the cost of people up while productivity remains low. It is a counterproductive short-term fix, as many businesses find out too late.

The cost of employee turnover

The cost of unwanted employee turnover is complex and, therefore, often underestimated. Small-to-medium size businesses (SMBs) are more susceptible to losing talent and have fewer resources to invest in retention.

Here is what happens when an employee decides to leave your organization:

The departing employee, earning /month, works at half productivity during their last two months (-$2,000). The hiring manager and HR team shift priorities and invest in hiring (-$1,000), while the departing employee's team will take a productivity hit too (-$2,000), taking on the extra workload.

Just the employee deciding to leave has cost you $5,000.

Best case scenario, you're able to hire a replacement immediately at the same salary. The new employee will take three months to get up to speed (-$6,000), while the hiring manager and team will continue to take the burden of the onboarding, training, and workload (-$6,000).

There is no additional productivity achieved during this time, an opportunity cost (-$6,000). The extra workload and stress decrease overall productivity & team morale while increasing the likelihood of others leaving (-$1,000).

In total, the conservative cost of an employee leaving is $24,000.

How many employees do you expect to leave your employee organization next year? At a turnover rate of %, your cost of employee turnover is $480,000/year.

Happily reduces employee turnover by %, saving you $240,000/year.

The investment for using Happily in your organization is $9,600/year, an ROI of 2,400%.

Because culture is how work gets done
and engagement is the fuel.

Get started today!

By using this website you agree to our Policy

Cookie Settings

We use cookies to improve user experience. Choose what cookie categories you allow us to use. You can read more about our Cookie Policy by clicking on Cookie Policy below.

These cookies enable strictly necessary cookies for security, language support and verification of identity. These cookies can’t be disabled.

These cookies collect data to remember choices users make to improve and give a better user experience. Disabling can cause some parts of the site to not work properly.

These cookies help us to understand how visitors interact with our website, help us measure and analyze traffic to improve our service.

These cookies help us to better deliver marketing content and customized ads.