ROI Toolkit
Investing in employee engagement reduces sick leave and staff turnover, saving costs and increasing ROI.
The methodology
The Methodology
The following outlines the recommended steps to implement this methodology:
- Collect employee engagement data ā Measure employee engagement through surveys, feedback sessions, and key workforce metrics such as sick leave and staff turnover.
- Identify areas for improvement ā Analyse trends to determine where engagement issues are impacting operations. This may include high absenteeism, poor workplace morale, or lack of training and development opportunities.
- Invest in employee engagement initiatives ā Develop targeted strategies such as enhanced training, wellbeing programs, employee feedback mechanisms, and recognition schemes to boost engagement.
- Monitor impact on sick leave and staff retention ā Track changes in absenteeism and staff turnover over time to measure how engagement improvements are reducing business costs.
- Quantify the financial impact ā Link improved employee engagement to cost reductions in areas such as sick leave, temporary staff, and recruitment costs.
An example of how an organisation might use the Employee Engagement ROI metric
A supermarket launched an employee engagement initiative to reduce high sick leave and turnover rates. They invested Ā£300K in a strategy that included enhanced training, regular employee consultation, and wellbeing programs. Within six months, sick leave hours dropped by 100,000, leading to Ā£600K in cost savings from reduced temporary staffing and overtime. Employee turnover also decreased, saving an additional Ā£100K in recruitment costs. At the same time, CSAT scores began improving, reinforcing the link between engaged employees and customer satisfaction.
Things to consider
Track CSAT/NPS alongside employee engagement to identify trends.
Improvements in employee engagement may take several months to reflect in customer satisfaction scores.
Monitor reductions in sick leave, temporary staffing needs, and recruitment expenses.
Increased CSAT can lead to higher retention, increased customer spend, and improved brand reputation.
Any business with a customer-facing workforce can leverage this methodology for measurable benefits.
