The Engagement Factor: ROI Calculator

Financial Impact of Employee Engagement

Organization leaders collaborate to define "employee engagement" and determine how levels of engagement impact the bottom line results of the organization.

Step 1: Engagement Distribution

What does "engagement" look like? How many employees are currently at each level of engagement?

Step 2: Performance Impact

What level of performance is delivered by an employee at each level of engagement?

Step 3: Financial Impact of Engagement

What is the financial impact of engagement?

Step 4: Bottom Line Impact of All Employees

How are the financials being impacted by engagement?

Step 5: Taking Action to Impact the Bottom Line

If we TAKE ACTION to increase employee engagement…what financial benefit will be achieved?

Calculating Your Financial Impact of Engagement

Follow the five steps within this workbook to calculate your financial impact of employee engagement.

You must enter data in the orange underlined cells of each worksheet to complete the step.

Click on Step 1


Step 1: Engagement Distribution

Engagement levels can be broken down into four main categories, while organizations may refer to the categories differently, they normally consist of "Fully" or highly engaged, "Engaged", "Somewhat Engaged" and "Disengaged" employees. If you have completed an engagement survey recently, enter the high level results here. If you haven't, please use your best estimates.




Engagement Level				% of Employees

Level 4: Fully Engaged
Level 3: Engaged
Level 2: Somewhat Engaged
Level 1: Disengaged
Total Organization				"0"

Step 2: Performance Impact

Determine how much performance is delivered by each level of engagement. If "Engaged" employees deliver good-solid performance (100%), how much MORE or LESS performance would you see from employees at the other levels of engagement?

Our Performance Impact

Engagement Level

(A)
Percentage of
Employees

(B)
Percentage of
Performance Delivered

(C)
Performance Impact
A X B = C

Level 4: Fully Engaged

Level 3: Engaged

100%

Level 2: Somewhat Engaged

Level 1: Disengaged

Our Current Performance Potential

"0"

Proceed

Performance Potential: An organization's performance is "enhanced by" or "limited by" (A) How many employees are at each level of engagement and (B) The performance delivered at each engagement level. If an organization has all employees at Level 3: Engaged, the organization will have a "Performance Potential" of 100%. As employees become "more engaged", performance is increased. As employees become "less engaged" performance is decreased.


Step 3: Financial Impact of Engagement

What is the financial impact of employee engagement?

All Employees
Average Annual Salary
Benefits Cost (%)		NOTE: 28% is SHRM's (Society for Human Resource Professionals) average across companies. You can replace this with you own figure.
Total Compensation (Salary and Benefits)
			Each person creates an impact on organization financials… View the gain or loss generated by an employee at different levels of engagement.
	Percentage of Performance Delivered	Performance Increase or Decrease
Level 4: Fully Engaged			Organization GAINS	per year
Level 3: Engaged			Employee delivers an organization "value" equal to the costs (Salary + Benefits)
Level 2: Somewhat Engaged			Organization LOSES	per year
Level 1: Disengaged			Organization LOSES	per year


Step 4: Bottom Line Impact of All Employees

What is the current financial impact on our organization financials?

The Bottom Line Impact of Employee Engagement

(A)
Total Employees
Average Salary and Benefit Cost

(B)			(C)	(A) x (B) x (C)
% Employees at Each Level	Engagement Level	Performance Delivered	Bottom Line Impact of Engagement	Financial Impact
	Level 4: Fully Engaged		Organization GAINS
	Level 3: Engaged		Employee delivers an organization "value" equal to the costs (Salary + Benefits)
	Level 2: Somewhat Engaged		Organization LOSES
	Level 1: Disengaged		Organization LOSES
Current Bottom Line Impact of Employee Engagement

Step 5: Taking Action to Impact the Bottom Line

(A)

Total Employees

If we TAKE ACTION to impact employee engagement…
what financial impact will be achieved?

Average Salary
and Benefit Cost

(B)

(C)

(A) x (B) x (C)

(D)

(A) x (B) x (D)

Engagement
Level

Performance
Delivered

Bottom Line Impact

% Employees

Financial
Impact

ACTION:
Increase bottom line results by
increasing employee engagement

% Employees

Financial
Impact

Level 4: Fully Engaged

Organization GAINS

Keep 100% of our "Fully Engaged" Employees

Level 3: Engaged

Employee delivers an organization "value" equal
to the costs (Salary + Benefits)

$ -

Achieved

of

"Engaged" Employees
to "Fully Engaged"

$0.00

Level 2: Somewhat Engaged

Organization LOSES

Achieved

of

"Somewhat Engaged" Employees
to "Engaged"

Level 1: Disengaged

Organization LOSES

Achieved

of

"Disengaged" Employees
to "Engaged"

*The ratios above are based on modest improvements, generally requiring about six months of action to improve engagement levels. You may enter more or less aggressive goals as you wish.

Current Financial Impact

Future Financial Impact

(CURRENT - FUTURE) = Financial GAIN from "Taking Action" to Increase Employee Engagement

You can request for your results to be sent to you in Powerpoint so that you can use them in your own presentations. Please complete the short form below and press Submit.

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