How Employee Engagement Affects Your Bottom Line

This calculator helps you determine the ROI of maintaining engaged employees by taking into account variables such as the cost of disengaged employees, the cost of lost productivity, and the potential increase in revenue from more engaged employees.

With this information in hand, you have a business case for investing in an employee feedback tool that will make your employees feel heard and empowered. By implementing a tool that encourages feedback, and practices and policies in response to this feedback, you can help keep your employees motivated and engaged. So, how much can an investment in an employee engagement tool benefit your bottom line ? Use the Employee Engagement ROI calculator to find out.

Employee Engagement Calculator

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Estimated Annual
Savings with AllVoices

$0

Number of Employees

0

× Average Annual Employee Salary

$0

× Productivity Gain

5% of Salary

Total Productivity Savings

$0

Number of Employees

0

× Average Annual Employee Salary

$0

÷ Workdays Per Year

240 Workdays

× Number of Days of Less Absenteeism

5

Total Absenteeism Savings

$0

Number of Employees

0

× Average Annual Employee Salary

$0

× Current Turnover Rate

0%

× Employee Turnover Cost

38% of Salary

× Turnover Rate Reduction

33%

Total Turnover Savings

$0

Average Annual Employee Salary

$0

÷ Workdays Per Year

240 Workdays

× Days of Onboarding

90 Days

× Increment of Value

15%

Onboarding Savings / Employee

$0

Avg. Growth Rate

10%

× Number of Employees

0

New Positions / Year

0

Current Turnover Rate

0%

× Number of Employees

0

Replacement Employees / Year

0

Onboarding Savings Per Employee

$0

× Total Employees Onboarding

0

Total Onboarding Savings / Year

$0

Start Saving

Questions? We have answers.

How do I calculate the ROI of employee engagement?

With our calculator we take into account 4 variables: productivity, absenteeism, turnover, and onboarding. According to Gallup an engaged workforce can have (conservatively) around 21% higher productivity, employees are 5 times less likely to be absent from non-medical leaves, and an engaged environment fosters creativity and advocacy. Improving recruitment and retention efforts can therefore save companies millions of dollars annually in costs. Every one of those four components has a specific formula, which we get into in the next question.

How are Employee Engagement Savings Calculated? 

The four variables above are added together to display a total annual amount. 

The productivity savings multiplies the amount of employees, average yearly salary, the cost per benefits, and a 5% productivity gain. 

The absenteeism savings multiplies the number of employees, the average annual salary, benefits costs, workdays per year, and the number of days of less absenteeism. 

The turnover savings multiplies the average salary, benefits costs, the current turnover rate, and the expected turnover reduction savings (66%).

Lastly, the onboarding savings takes into account all of the costs associated with onboarding, so it can get rather complex. First, we calculate the “onboarding savings per employee”, by getting the average employee salary, multiplied by benefits cost, divided by workdays per year, multiplied by 90 days of onboarding (according to strategists it takes 90 days to get fully onboarded) and a 15% increment in value. We then look at the average growth rate multiplied by the number of employees to show the new positions per year, and if you multiply the turnover rate by the number of employees, you’ll have the replacement employees per year. Last part is getting the total amount of onboarding savings per employee and adding the costs associated with new positions and replacement employees per year and we give them the number — and this gives us a number around what AllVoices is likely to save you every year.

Why is employee absenteeism linked with disengagement?

There are a few reasons why disengaged employees are more likely to be absent. Firstly, when employees are disengaged, they may not feel motivated to come to work or be productive. As a result, they may end up taking more sick days than other employees.

Secondly, disengaged employees may feel disgruntled with their job and see no reason to come in to work. Finally, when employees are disengaged, they may feel isolated from their co-workers and feel that there is no point in coming to work since they are not getting the support they need.

How can attrition and turnover affect your bottom line?

Attrition can result in lost productivity and increased costs. When employees leave an organization, they often take their knowledge and experience with them. This can lead to a loss of productivity as the organization tries to rebuild its workforce. Additionally, the cost of recruiting and training new employees can be significant.

Turnover can also be costly for organizations. When employees leave, the organization must find and train a replacement. This can be expensive and time-consuming.

How does employee engagement affect your bottom line? 

There is a positive correlation between employee engagement and organizational performance. In fact, according to Gallup, companies with high levels of employee engagement outperform those with low engagement by 214%. 

Why should you expect a turnover rate reduction?

According to research from the DDI, companies with highly engaged employees had a 70 percent higher likelihood of success than those below the median levels of engagement. Success was a composite measure combining customer loyalty, turnover, and financial metrics within the study. Retention was one of the main focal points. Our calculator includes a 66% turnover rate reduction metric that is indicative of that score.

What is the increment of value in the onboarding section representative of?

This number is used to represent a numeric value that is associated with the productivity gain and money associated with onboarding a new hire (or a promoted employee). 

For this number, we had to think outside of the box a bit, and referenced the onboarding book “The First 90 Days” by  Michael D. Watkins, as transitions into new roles can be challenging for most. Being that there aren’t any established working relations and most of the time, there isn't a complete mastery or understanding of the role. So, in reality the onboarding process has employees working at about 15% of their full potential.

Why do leading companies trust AllVoices
with reducing their turnover?

Encourages Employees to Share Feedback

AllVoices provides employees with an anonymous way to raise feedback and concerns and capture valuable insights in real time. This allows employees to be candid and honest without fear of retribution.

Cultivates Positive Company Culture

Empower your employees to feel safe anonymously speaking up and voicing their opinions about harassment, bias, culture, and other vital workplace issues. This allows companies to stay on top of incidents, before issues become organizational norms.

Maintains the Security And Integrity of Your Data

The security of your data is our highest priority.  AllVoices uses multiple security measures to ensure the safety of your data and to ensure compliance with industry best practices and globally recognized standards including SOC 2,  GDPR, and CCPA Compliance. Any data entered into AllVoices is fully secured using Advanced Encryption Standard (AES-256).

The Cost of Disengaged Employees

A recent study by Gallup found that only 33% of employees in the U.S. are engaged at work. The highest resignation rate of employees are among ‘not engaged’ and ‘actively disengaged workers’. 74% of actively disengaged employees and 54% of not engaged employees are actively looking for new roles. This lack of engagement is costing businesses billions (est: $450-550 billion) of dollars each year.

Employee engagement is crucial to the success of any organization. When employees are engaged and motivated, they’re more productive and are actively contributing more to their organization. But, how can you be sure that your employees are engaged? One of the most effective ways to do this is by investing in tools that will give your employees a voice. Employee feedback management tools, like AllVoices, can help you provide employees with an easy and comfortable way to engage and share their feedback. These tools can also provide you with an easy to use platform to source, track,

33%

of employees in the U.S. are engaged at work.

$81,000

average cost to replace each employee.

74%

of disengaged employees are actively looking for new roles.
Happy Customers

What our customers are saying

“The anonymity feature creates a safe environment for employees to also raise more sensitive topics, providing an opportunity for us to address issues effectively and in a timely manner.”
Arjen Mackaaij
SVP of People, FabFitFun
"Sustainable cultures create multiple pathways for employees to receive support. AllVoices can be a valuable part of your people strategy and demonstrate your commitment to doing the right thing no matter the situation."
dan spaulding
Chief People Officer, Zillow
"Implementing AllVoices vs. a traditional whistleblower hotline has given us much more opportunity to dialogue with employees who report concerns due to the anonymous messaging feature of the tool.  The UI is great and the ability to report on cases for compliance purposes is easy."
Kristie Rodenbush
Chief People Officer, Algolia