We get it – it’s tough to show how internal communications and an Employee Experience Platform (EXP) truly benefit the business. How do you measure the real impact of better communication and engagement? It’s tricky to directly link these improvements to boosts in productivity or efficiency. But when you can show numbers, the benefits to stakeholders become crystal clear.
This guide will help you present these benefits in a way that even the most skeptical stakeholders will appreciate. With our ROI Impact Framework, you’ll turn abstract improvements into concrete dollar values, making it obvious how your project will economically benefit the organization.
One of the best tools for this is the ROI Impact Framework. It translates improvements into dollar values, helping stakeholders see the financial benefits of your proposed projects. It’s your ticket to securing budget approval from decision-makers, like your CFO.
In this blog, we’re going to focus on one of the most common problems facing frontline teams: high turnover. It also happens to have the clearest ROI and demonstrable track record of success after implementing an employee experience platform.
Alright, let’s dive in and pinpoint the headaches. First up, you gotta know what’s broken. Think of it like a game of whack-a-mole, but with business issues. If you don’t know which mole is the problem, you’ll just keep whacking blindly. So, let’s look at some juicy stats of employee turnover rates per industry:
These numbers are a cry for help. High turnover means higher costs and chaos. When employees feel disconnected, they’re more likely to ghost you. And who can blame them?
Poor employee experience, bad communication, scattered tools, and hard-to-find documentation are big culprits. When employees feel disconnected, their engagement and productivity take a hit. Crappy onboarding doesn’t help either – new hires who don’t get the company’s vibe and values are more likely to bail, thinking the company isn’t committed to them.
Ok, so you’ve identified a problem. In this case, higher than acceptable turnover. But what is the real cause of this problem? And can you fix it? This is the question your CFO is going to ask and it’s time to come with the receipts…
Now is not the time to be careless – really think about what’s causing these problems. If you’re paying below-market wages, you’ve got to fix that first. If you’re not investing in the right safety programs and employee well-being, that should take priority.
But if you’re the 99% of companies that this doesn’t apply to, let’s go deep.
According to a study by Workday, frontline managers are one of the largest contributors to frontline retention. A good manager? Employees stick around. A bad one? They're outta there. Let’s break it down:
You need a combo of smart process improvements and understanding the real issues to keep your team happy and engaged. That's why it's so crucial to dive deep into the root causes, because if you don't do that, then you'll just keep putting out fires instead of preventing them.
Next, evaluate how this is impacting your business by looking at the big picture.
*SHRM reports the average cost to replace one FTE equals 20% of the annual salary. For this calculation, we have assumed 15% of the FTE annual wages of $28,800, excluding benefits. This is inclusive of ‘hard’ costs such as recruitment fees and salaries and ‘soft’ costs like impact on productivity, time to full proficiency in the position, and emotional toll of engagement dropping.
Using the figures above, we can assess the financial impact of employee turnover for the business:
Alright, time to dive into how the EXP (Employee Experience Platform) is going to save the day. This is the juicy part where you show exactly how the EXP tackles the issues head-on and boosts your operational efficiency.
Make sure to give specific examples of how an employee experience platform can solve problems:
These real-world examples make it crystal clear to stakeholders how the EXP can deliver specific, tangible benefits.
And hey, fun fact: An EXP is cheaper per employee than toilet paper (seriously, it is).
Now, let’s talk dollars and cents. Calculate the potential return on investment (ROI) to show the financial benefits of the EXP. This is crucial to demonstrate the value of the EXP and justify the investment.
Let’s continue with the same numbers we used in step 2 and calculate the ROI. By reducing turnover by just 1.25% - from 25% to 23.75% - you're saving 110 jobs every year.
This ROI shows a killer return on investment, highlighting the major financial and operational wins from implementing the employee experience platform, including the big bucks saved by reducing turnover.
Got a CFO who needs convincing? No problem. Arm yourself with real-world success stories and case studies. Show how other companies improved productivity, reduced turnover, and enhanced overall business performance with an EXP.
Read more about how to convince your CFO to invest in an employee experience platform
Plan a free demo with Speakap's employee experience platform today and see the difference. We'll help you identify your specific internal communication challenges and tailor a solution that drives measurable results.
Speakap doesn’t just show numbers; we empower you to build a thriving workplace environment where employees feel valued, informed, and empowered to contribute their best.
Speakap empowers you to do your job even better.