THE EMPLOYEE EXPERIENCE OPPORTUNITY & ROI CALCULATOR
What it is and why do you need it
Ultimately, businesses are mostly focused on competitive advantage, growth, and profitability — but these can’t be measured via the ‘fluffy stuff’, such as clicks, views, and engagement rates. The golden goose is to correlate EX activities to the bottom line. So, we have created the EXOpportunity Calculator™ so that you can share with your own senior leaders the impact of a motivated, productive workforce.
Senior leaders and budget holders love numbers and the calculator will allow you to build a business case based on your specific organisation that is backed up with real numbers. The beauty of it, is that it is not generic; you can use data about your own organisation.
How to use it
To get the most accurate result from the calculator, you will need to have undertaken a mojo motivation mapping exercise at your organisation. However, in lieu of having these figures, you could do an indicative calculation using the average motivation percentage of 65% or even substituting the motivation % figure with satisfaction % levels. (But as there’s no proven correlation between satisfaction and motivation, you couldn’t use this as a ‘real’ figure.)
However, a substitute figure can help you to see immediately how the calculator works and the potential opportunity that comes from investing in your employees’ motivation and experience. Motivation is integral to productivity, which is why it forms a part of this calculator.
Here is a breakdown of the different metrics the calculator considers:
- Number of employees: Add the number for your organisation based on total headcount
- Average Salary: Add the average number for your organisation
- Annual Revenue: Add the actual number for your organisation
- Average Revenue per employee: Annual Revenue/No of employees
- Churn Rate %: Add the exact number for your organisation
- Motivation %: The organisation-wide score from mojo maps
- Total Salary Costs: No of employees X Average Salary X 1.2 (to allow for employer NI)
- Lost Productivity at Cost: Total Salary Costs X (100%—Motivation %) = Cost of Unproductive Time
- Lost Opportunity / Capacity: Annual Revenue X (100%—Motivation %) = Unrealised Revenue
- Recruitment Costs: (Churn % X No of Employees) X Average Salary X Average Recruitment Cost
- Sickness & Absence Costs: Taken from the CBI calculations
You will see that a seemingly small percentage shift in motivation and productivity can have rather large financial implications for businesses of all sizes. Armed with a compelling ROI calculation for your organisation, you can have powerful conversations with senior leaders to secure support and budget for EX improvements.
You can access the EXOpportunity Calculator here.