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.

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