The Return on Investment of an Employee App

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The Return on Investment of an Employee App

Communication Creates Culture Companies of all shapes and sizes are finding value in adopting an employee app, whether they’re looking to boost employee engagement or even reduce work-related accidents. In this study, we measure the value of an employee app for reaching business goals and help build a case for digital transformation in internal communication.

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Table of Contents

Contents Introduction

3

The Current State of Internal Communication

4

Linking Internal Communication to Business Outcomes

4

The Business Value of Going Mobile

6

Lower Risk and Improve Customer Satisfaction

8

The Problem

9

The Solution

10

The Role of an Employee App

10

Theory in Practice: Reinert Logistics

11

Raise Revenue with Increased Productivity

12

The Challenge

13

The Solution

13

The Role of an Employee App

14

Theory in Practice: US AutoLogistics

15

Save on Recruiting and Retention

16

The Challenge

17

The Solution

17

The Role of an Employee App

18

Reduce Costs of Change Processes

21

The Problem

22

The Solution

22

The Role of an Employee App

24

Theory in Practice: RHI Magnesita

25

Conclusion

26

Business Issues Surrounding Poor Communication

27

Key Findings

28

Creating a Stronger Business with a Mobile Employee App 29 Appendix

30

Plug in your numbers

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The Authors

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3

01 Introduction

Introduction

Introduction The Current State of Internal Communication In the digital world, communication has become a pastime; nonetheless, companies are struggling to find a connection. Employees are plugged in to their personal lives and checked out of their professional ones. Seventy percent of the workforce does not work at a desk or have a corporate email address, and among those that do, less than 50 percent of employees with intranet access log in daily. Communication professionals are flooding channels that have long been deserted. Millennial employees are constantly checking their phones for Facebook posts and Snapchats, yet employers keep sending emails despite the fact that 30 percent of emails are trashed or ignored today. Surveys show that 74 percent of US employees feel they are missing out on company news and information. It’s clear that internal communication needs a makeover for its own sake, but the current state of internal communication is costing businesses as a whole, too. A lack of connection yields a lack of commitment— turnover has been rising for the past nine years, and 67 percent of workers report feeling uncommitted to their jobs. As workplaces go digital, change is occurring faster than ever, and change-related stress is an undeniable consequence which hinders employee performance. Studies show that an additional 17 percent of productivity is lost to employee disengagement. Disengagement hinders not only efficiency, but also frontline performance. Well-informed and engaged employees are significantly less likely to cause accidents and significantly more likely to deliver positive customer service.

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Introduction

Linking Internal Communication to Business Outcomes

Cost of poor communication to businesses:

There is a clear connection between internal communication and business outcomes, but companies need to make a shift to capitalize on it. They need to not only find a way to reach employees and maintain that reach, but also enable different layers of communication—specific to jobs, teams or locations, or the company as a whole, as well as external communication. When they activate these various levels, internal communication starts to transform company culture and create positive business outcomes.

Number of employees that quit their job each year

26%

35 % of a disengaged employee’s salary is wasted

Companies with disengaged employees have a turnover rate of

34 % An average

12 %

of working time is wasted due to avoidable inefficiency

Engagement

2017

Compared with bottom-quartile engagement companies, top-quartile engagement companies have... 25-65% lower turnover

25.2%

2016

23.8%

2015

22%

2014

20.3%

2013

48%

fewer safety incidents

10%

higher customer metrics

21%

higher productivity

22%

higher profitability

Source: Gallup

Source: Bureau of Labor Statistics

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Introduction

Until now, internal communication has focused on relaying top-down information pertaining to organization-wide issues and company culture, or on enabling collaboration between individuals. Operational communication, on the other hand, is the responsibility of process and project leaders, and involves planning, organizing, and overseeing work-related activities. Communication that happens on this level can profoundly impact business operations, risk, customer satisfaction, and the success of change. Traditional internal communication has not been strategic enough in enabling these leaders to communicate well. The Business Value of Going Mobile Employee apps are growing in popularity and reinventing internal comms. Part of staying competitive in the digital age means drawing on the reach and power of mobile devices to keep employees engaged.

Employee App

Increase employee engagement

Reduce turnover by

25-65% Cut cost of social media efforts by

90%

Facilitate smooth changes

Reduce revenue loss due to change-related stress by

41.2%

Business Outcomes

Enable middle management

Reduce wasted time

Reduce risk to save on annual illness and injury costs by

Boost productivity

5%

31%

per fifteen percent reduction in wasted time

Grow revenue with increased NPS by

Increase revenue per employee

7% 7

Introduction

If companies want to reach employees at all, they need to switch to the channel that employees are using. But the battle isn’t won so easily—a mobile solution is most successful when it continually offers content and features that keep employees coming back. When employees are plugged-in to their workplaces, the negative consequences of disengagement offset substantially. Apps enable internal communication professionals to decentralize communication efforts, empowering people who already have a voice in employees’ lives to also create and distribute content. This frees up communicators to act strategically, identifying and advising on opportunities to increase influence and engage employees to reach business goals. In addition, a mobile channel makes it easy for employees to share information and advocate for their employers in their personal networks. Employee apps are helping companies utilize communication to improve efficiency and compliance, lower turnover, reduce risk, improve customer satisfaction, and reduce stress. This paper summarizes research on a number of business metrics impacted by internal communication, and identifies how and to what extent an employee app improves internal communication and, in turn, business outcomes.

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02 Lower Risk and Improve Customer Satisfaction

Lower Risk and Improve Customer Satisfaction

Lower Risk and Improve Customer Satisfaction The Problem Top-down communication approaches that are consolidated to one central communication department fail to influence communication occurring at an operational level, which directly impacts business outcomes. Work accidents that consume time, money, and resources on various levels occur due to business risks such as poor incident management and noncompliance, often as a result of poor operational communication. In 2016, employer costs of work injuries and damage to company property in work accidents amounted to 69.6 billion dollars.1 Customer satisfaction is also highly dependent upon the ability of organizations to successfully guide employees in delivering positive customer experiences. This is a huge asset for companies. Businesses in the US lose 83 billion dollars yearly due to poor customer experiences, and 60 percent of consumers say they have stopped doing business with a brand due to poor customer service experiences.2 It is 5 to 25 times more costly to attract a new customer than it is to retain an existing one.3

1 https://injuryfacts.nsc.org/work/costs/work-injury-costs/ 2 http://www.smartcustomerservice.com/Best-Practices/2016-STATE-OF-GLOBALCUSTOMER-SERVICE-REPORT_6636.aspx 3 https://hbr.org/2014/10/the-value-of-keeping-the-right-customers

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Lower Risk and Improve Customer Satisfaction

The Solution Until now, internal communication departments have been seen as responsible for providing organizational news and producing content for employee magazines and intranets. Companies with this approach have been unable to use internal communication to create value and support business goals.4 Decentralized communication approaches use central communicators to distribute messaging responsibility and empower operational leaders to communicate effectively. This can play a tremendous role in reducing risk and providing information that improves performance on the front line, improving customer satisfaction. The Role of an Employee App Work injuries often occur due to poor training or onboarding processes and insufficient enforcement of good practices in the moments that matter. A distributed approach to internal communication made possible by an employee app gives operational leaders the tools to disperse job-critical information in meaningful moments to ensure compliance. One work accident costs an employer on average $20,000. When an employee app reduces the incidence rate to 2.0, a company saves 31 percent on the annual costs of occupational injuries and illnesses5 (≈ $135,000 for a company with 750 employees). Customer satisfaction is often measured by the Net Promoter Score (NPS). This measures the likeliness of a customer referring a company and its products or services to someone else. An employee app makes it possible to empower and equip operational leaders to communicate information to better serve on the 4 https://blochoestergaard.dk/how-internal-communication-delivers-business-valuein-the-future/ 5 See table 5.

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Lower Risk and Improve Customer Satisfaction

front line. Operational leaders are able to recognise employees, allow them to give project- or locationspecific feedback easily, and provide them with product information and material to guide them in acting according to company values. By these measures an employee app can be reasonably expected to improve NPS by 10 percent. Every increase of 10 percent leads to a 7 percent increase in revenue growth.6

Theory in Practice: Reinert Logistics Reinert Logistics, a German transport company with 83 percent non-desk workers, implemented an employee app in 2017. The company used the app to give process and project leaders the opportunity to distribute information when and where it mattered—in the field. The operational managers created safety videos for their employees in order to help them with daily tasks and improve compliance. After one year, the company saw a 15 percent reduction in incidents resulting in damages to company assets.

15%

15%

damage reduction Comparative period January 2017 to June 2017 and January 2018 to June 2018

6 https://hbr.org/2009/12/closing-the-customer-feedback-loop

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03 Raise Revenue with Increased Productivity

Raise Revenue with Increased Productivity

Raise Revenue with Increased Productivity The Challenge Inefficiency is the product of time-consuming activities that hamper employee productivity and workflow, such as searching for already available information and performing administrative tasks (vacation requests, filing expenses, filling out timesheets, etc.) Several studies confirm that employees spend on average 20 percent of their work time searching for and gathering information they need to do their jobs effectively.7 Additionally, 12 percent of time is spent on administrative tasks.8 Another cause of inefficiency is the inappropriate use of tools, programs, or machines which can lead to attrition and the wasting of resources. Inappropriate use is often due to a lack of training or inadequate information when new tools are implemented. The Solution An easy way to reduce the aforementioned inefficiencies is to improve access to and quality of information employees need to do their jobs. Additionally, companies can simplify processes for executing administrative tasks and provide better access to training videos and material that facilitates appropriate use of tools and resources.

7 http://www.kmworld.com/Articles/Editorial/Features/The-high-cost-of-not-findinginformation-9534.aspx and https://www.mckinsey.com/industries/high-tech/ourinsights/the-social-economy and https://www.linkedin.com/pulse/workers-spendtoo-much-time-searching-information-hung-cao/ and https://simply-communicate. com/uk-employees-spend-over-a-quarter-of-their-time-each-day-searching-forinformation/ 8 https://www.entrepreneur.com/article/240076

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Raise Revenue with Increased Productivity

The Role of an Employee App When an employee app is capable of storing and organizing documents and information relevant to employees’ jobs, it puts this information in direct reach of the employee and cuts down the time they would otherwise spend searching for it. This is especially the case for apps capable of linking to existing intranets via single-sign on. Employee apps that offer HR tools (timesheets, vacation requests, etc.) substantially accelerate administrative tasks, particularly for nondesk employees working without access to desktop computers. Some employee apps are even able to embed onboarding and training materials through supporting checklists and videos, which also improve these processes. This reduction in time wasted searching for information and performing administrative tasks can increase revenue per employee by Use of an employee 5 percent.9

app could reduce time wasted on redundant activities by

15 %.

9 See table 4.

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Raise Revenue with Increased Productivity

Theory in Practice: US AutoLogistics Information workers and non-desk workers require different kinds of information to do their jobs, and they gather this information in different ways. Still, wasting time searching for information is just as real a problem for non-desk workers. US AutoLogistics has 80 percent non-desk workers and implemented their employee app in 2017. After several months, Troy Griggsby, Communications and Brand Manager at the company, explained:

“The employee directory alone is pure gold. We’ve learned that some of the things that seem like small inconveniences of outdated communication are really decisive in how well employees can do their jobs. The employee app addresses a lot of inefficiencies that hinder the day-to-day activities that keep our business running smoothly.” In this case, the employee directory proved to be not only highly effective in breaking down barriers between employees who did not often see one another face-to-face, but also built relevance into the app. Employees opened their apps many times per day because of this tool, and in turn were left more informed and connected to the company while decreasing time wasted searching for job-critical information.

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03 Save on Recruiting and Retention

Save on Recruiting and Retention

Save on Recruiting and Retention The Challenge All companies allocate indispensable resources in their efforts to hire and retain employees. Human resource teams spend valuable time and energy in hiring processes, and the loss of an employee means not only a loss of knowledge and workplace literacy, but also a loss of productivity due to an empty position. It takes an average of 42 days to fill a position10 and each day with an empty seat costs money. Recruiting costs such as paying headhunters and running job advertisements can cost up Replacing a lost to 35 percent of the annual salary of a new employee costs on hire, and onboarding expenditures for new average employees add even more to turnover costs. Replacing a lost employee costs a company on average 20 percent of the annual salary of of their that employee.11 Over one third (36 percent) annual salary. of employees leave their jobs each year, reflecting tremendous turnover costs for companies each year.

20 %

The Solution There are three ways to reduce turnover costs—filling job vacancies more quickly, speeding up onboarding processes, and keeping current employees engaged and thus less likely to leave their jobs. Employee advocacy is a profitable way to promote better recruiting communications by utilizing employee voices to spread news about vacancies and create greater trust in the company. Onboarding processes can be accelerated by 10 https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/ Documents/2016-Human-Capital-Report.pdf 11 https://www.americanprogress.org/wp-content/uploads/2012/11/CostofTurnover. pdf

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Save on Recruiting and Retention

digitalization. Employee engagement is a key indicator of turnover risk in companies; highly engaged employees are significantly less likely to leave their employer, and research indicates that 45 percent of low-turnover-risk employees are highly engaged.12 The Role of an Employee App Employee engagement is driven by several different factors, including recognition, purpose and goal alignment, good communication by leadership about business goals, Engagement Compared with bottom-quartile and the ability of employees to give engagement companies, top-quartile feedback.13 All of these factors can be engagement companies have... well addressed with an employee app. An employee app plugs employees 25-65% lower turnover back in to their organizations by 48% fewer safety incidents giving them a constant connection to their employer, which integrates 10% higher customer metrics seamlessly into their everyday 21% higher productivity communication habits. Through an employee app, employees are kept 22% higher profitability up to date on company happenings through news and posts, and they ideally also have information regarding goals and company culture at their fingertips in pages and folders. An employee app encourages the type of reciprocity that keeps employees attentive by empowering them to take part in conversations with comments and likes, as well as direct feedback functions such as surveys and polls, as opposed to receiving topdown news and information.

Source: Gallup

12 https://www.towerswatson.com/en-US/Insights/Newsletters/Americas/ insider/2015/06/seven-things-to-know-about-employee-retention-risks 13 https://hbr.org/resources/pdfs/comm/achievers/hbr_achievers_report_sep13.pdf

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Save on Recruiting and Retention

When an employee app is branded, employees carry a little piece of their organization with them on the devices that accompany them in their everyday lives, bolstering identification with the company and its brand.

Improving internal communication can recover

80%

Employee apps which by above mentioned measures drive engagement levels to the top-quartile14 can lower turnover rates to

12.6 percent, saving 65 percent on turnover costs.15 An employee app can be reasonably of costs expected to reduce time needed to fill an of disengagement empty position by up to 25.8 days, reducing the cost of an empty position by 15 percent. Gallup reports that the cost of disengagement is equal to 35 percent of employees salaries,16 and that 80 percent of these costs are recoverable through improved internal communication. Employee apps boost advocacy by keeping employees up to date about current events and opportunities as well as providing them with shareable materials that promote business. An app empowers employees to share this information to their personal networks with a few easy clicks. And a native employee app lives on employees’ personal devices, making it easy to link to personal networks. Increased engagement resulting from the app makes employees more motivated to share this content in the first place and leadership can use direct communication channels to guide them regarding how and when to advocate for the brand.

14 https://www.gallup.com/services/176657/engagement-work-effect-performancecontinues-tough-economic-times.aspx 15 See table 1. 16 https://www.allbusiness.com/how-much-should-you-expect-to-pay-arecruiter-7606468-1.html

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Save on Recruiting and Retention

Employee apps using push notifications are shown to quadruple message cut-through and increase reach by over 800 percent.17 Reaching 1,000 people via social media costs on average about $2,000.18 This means a company using an employee app to drive advocacy could reach 9,000 people via social media for the same price, saving them $16,000 on recruiting. Recruiting strategies enabled via an employee app offer further cost savings by increasing reach to substantially reduce the need for job advertisements and headhunters.

Employee apps using push notifications are shown to increase reach by over

800%.

17 See table 2. 18 https://www.socialmediatoday.com/marketing/how-social-media-marketing-stacksagainst-traditional-advertising

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05 Reduce Costs of Change Processes

Reduce Costs of Change Processes

Reduce Costs of Change Processes The Problem Change is commonplace in 21st century organizations. Digitalization, reorganization, mergers and acquisitions, technology upgrades, personnel transitions, and other changes within an organization cost time and money and require employees to adapt quickly. Uncertainty during change (e.g. regarding job security or ambiguity in reasoning and objectives for change) has financial implications resulting from faulty decision making that leads to plunges in productivity, project delays, budget overruns, etc.19 In addition, there are costs associated with Change-related stress employee stress during times of change. lowers employee Employees suffering from change-related performance by stress perform 5 percent worse than the average employee,20 resulting in lost revenue . for companies.

5%

The Solution Strong communications is one of the most essential factors enabling success during organizational change. Companies with excellent organizational change management (OCM) programs achieve project ROIs of 143 percent. One of the main determinants of successful OCM programs was that they allowed reasons for change to be understood and accepted throughout an entire organization—not just in leadership.21

19 https://www.npd-solutions.com/resources.html 20 https://www.gartner.com/en/insights/change-management/changecommunication 21 https://gbr.pepperdine.edu/2010/08/the-business-impact-of-change-management/

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Conclusion

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Reduce Costs of Change Processes

The Role of an Employee App An employee app can substantially reduce the costs of change, accelerate change processes, and facilitate successful transitions. Having employees who are reachable simplifies and accelerates the communication of change by ensuring that all employees are furnished with sufficient relevant information. Traditional channels often do not reach all employees or fail to reach them in a timely manner, giving employees inadequate time and information to adjust to change. This increases uncertainty, which often leads to stress and faulty decision making. Traditional channels

often do not reach all employees or fail to reach them in a timely manner, giving employees inadequate time and information to adjust to change.

Involving employees in the change process is necessary for them to understand and accept change, and providing the opportunity for feedback and exchange is a big part of this involvement. Giving feedback is made easy through employee app features like surveys and polls, as well as commenting on and acknowledging having read articles and documents. This reduces stress and increases the speed and quality of change processes. Assuming that these mechanisms of an employee app can reduce the performance gap due to change-related stress by just 2 percent, a company going through a change process could expect to reduce revenue loss due to change-related stress by 41.2 percent.22

22 See table 3.

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Reduce Costs of Change Processes

Theory in Practice: RHI Magnesita Northwestern research found that mergers and acquisitions fail at a rate of 50 to 75 percent23 and Management Accounting Quarterly reported that the average loss from organizational change is 12 to 15 percent of revenue.24 RHI Magnesita is a global leader in the production of heat resistant materials. Prior to 2017, the company existed as two separate entities: RHI AG based in Vienna, Austria, and Magnesita Refratários in São Paulo, Brazil. In 2017, at the beginning of their massive merger, the company implemented an employee app for their combined 14,000 employees, 8,400 of whom were non-desk workers. The app was used to facilitate the fusion of two different company cultures and was critical in keeping employees at peak performance amidst the change. At the end of 2017, the successfully merged company reported an astonishing 11 percent revenue growth. Their app won various awards for outstanding corporate and workplace communication.

23 https://www.sesp.northwestern.edu/masters-learning-and-organizational-change/ knowledge-lens/stories/2015/resilience-and-commitment-after-a-merger-or-acquisition.html 24 https://www.imanet.org/-/media/e8b91a8125194eb7a84dceeead0986c2.ashx

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06 Conclusion

Conclusion

Conclusion Business Issues Surrounding Poor Communication Old internal communication structures are no longer working to create business value. Yet, internal communication is more important than ever in rising to the challenge of engaging an uncommitted workforce, keeping employee performance high during times of change, addressing inefficiencies, and boosting compliance and customer satisfaction. The digital age, with its multiple channels and mediums, also comes with hidden inefficiencies for employees searching for information. Frontline employees are often completely lacking access to job-critical information, and knowledge workers must wade through these various channels. Changing methods, technologies, and business structures are also putting pressure on employees to adapt quickly, and the resulting stress is impacting employee performance. Additionally, turnover is also costing business like never before—it has been rising steadily for the past nine years. Companies are now obliged to address the problem of employee disengagement in order to lower these costs.

Changing methods, technologies, and business structures are also putting pressure on employees to adapt quickly, and the resulting stress is impacting employee performance.

Work accidents and injuries cost companies billions yearly and are often preventable through better operational communication. Customer satisfaction is also heavily affected by the ability of operational leaders to successfully deliver guidance on the front line, and customers often shift their brand allegiancies based on customer-service experiences. 28

Conclusion

Key Findings Research shows that improved internal communication alleviates business problems and supports employee performance. The findings in this paper highlighted four main areas where internal communication appears to be most effective:1) lowering risk and improving customer satisfaction by guiding frontline employees in their tasks, 2) increasing productivity by enhancing delivery of information and administrative processes, 3) lowering turnover and strengthening recruiting by increasing employee engagement, and 4) reducing costs related to change by ameliorating change-related stress that hinders employee performance. This paper explored the degree to which implementing an employee app can positively affect these areas and found that:

• Use of an employee app can improve communication enough to reduce costs of occupational injuries and illnesses by 31 percent and improve Net Promoter Score by at least 10 percent. • An employee app can increase access to job-critical information and automate administrative processes enough to reduce time wasted in this area by 15 percent, which increases revenue per employee by 5 percent. • An employee app can boost engagement levels to above 75 percent, which saves companies 25 to 65 percent on turnover costs. • Communicating via an employee app during times of change can reduce change-related stress by at least 2 percent, which lowers related revenue loss by 41.2 percent.

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Conclusion

Creating a Stronger Business with a Mobile Employee App Insights into the effect of internal communication on business outcomes—and subsequently the impact of a mobile employee app on internal communication— point to a concrete and calculable return on investment (ROI). Many decision makers are choosing to invest in internal communications by adopting an employee app, and their success stories are the framework for this research. Companies looking to thrive in today’s changing business landscape cannot ignore the need to modernize company communication to suit their audience. When companies go mobile, doors are opened wide for internal communication professionals to create real value for their businesses.

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07 Appendix

Appendix

Appendix Table 1: Costs saved on turnover median salary per employee

$45,000 25

costs of turnover per employee (20%) 36% annual turnover rate

$9,000 271 (750 employees)

cost of turnover per year employee app lowers turnover rate by 65% 12.6% annual turnover rate

$2,443,442 94 (750 employees)

cost of turnover per year

$846.000

Costs saved on turnover

65%

Table 2: Social media reach26 assumed number of company’s facebook fans/followers

5,000

number of followers that view a post

3,200

assumed number of employees average number of friends of each employee average number of people that view a post

400 15027 120

percentage of facebook users

68%

number of all employees on facebook

272

number of employee’s followers

40,800

number of employees’ followers that view a post

32,640

number of employees that know how to advocate

108,8

potential reach of not ignoring messages and employees knowing how to advocate

13,056

percentage of employees reach

1020%

percentage of employees reach if only 40% know how to advocate

408%

25 https://www.thebalancecareers.com/average-salary-information-for-us-workers-2060808 26 https://getbambu.com/blog/data/downtime-to-work-marketing-report/ 27 https://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/

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Appendix

Table 3: Reduce cost of change-related stress median revenue per employee (FTE) average number of employees per US firm with more than 100 empl.

$143,00028 754

revenue per employee/ day (261 working days29)

$548

revenue per employee/ day under change-related stress (261 working days)

$520

change requiring 6 months (130.5 days) loss of revenue per employee under stress employee app reduces stress-level 2% revenue per employee under reduced stress (per work day)

$3,654 $531

change requiring 6 months (130.5 days) loss of revenue per employee under reduced stress

$2,145

revenue increase due to reduced stress under change

41.2%

Table 4: Increased revenue due to increased productivity median revenue per employee (FTE) at 68% productivity due to time wasted

$143,000

median revenue per employee (FTE) at 73% productivity (15% reduction in wasted time)

$150,150

Increase in revenue per employee (FTE) per 15% reduction in wasted time

5.0%

Table 5: Costs of work accidents yearly costs for all US employers number of US employees nonfatal occupational injury incidence rate number of occupational injuries and illnesses (750 employees) costs per occupational injury and illness Total cost of status quo Projected incidence rate with an employee app Total cost with an employee app Reduction in cost of occupational injuries and illnesses

$69.600.000.00030 120.091.80031 2.932 21.75 $19.985 $434,673 2.0 $299,275 31%

28 https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/2016-Human-CapitalReport.pdf 29 https://www.reference.com/business-finance/average-number-work-days-per-year-including-vacation-days7460cd1712f7f13a 30 https://injuryfacts.nsc.org/work/costs/work-injury-costs/ 31 https://www.census.gov/ces/dataproducts/bds/data_estab2015.html 32 https://www.bls.gov/iif/soii-chart-data-2016.htm

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Appendix

Plug in your numbers Cost associated with engagement (Headcount)

x 0.172

= # disengaged employees

(Median annual salary)

x 0.34

= annual cost per disengaged employee

(# disengaged employees)

x (annual cost per disengaged employee)

= total cost of disengagement

(Headcount)

x (turnover rate)

= # annual turnover

(Median annual salary)

x 0.16

= annual cost per turnover employee

(# annual turnover)

x (annual cost per turnover employee)

= total cost of turnover

(# annual turnover)

x (0.75 to 0.35)

= projected turnover with employee app

(Median annual salary)

x (projected turnover with employee app)

= ROI related to retention

(Headcount)

x (median annual salary)

= cost of work

(cost of work)

x (0.15 to 0.25)

= cost of unproductive work

(cost of work)

x 0.06

= ROI related to productivity

ROI related to retention

ROI related to productivity

ROI related to operational communications (Headcount)

x .029

= # work incidences/ year

(# work incidences/ year)

x $20,000

= cost of work incidences

(cost of work incidences)

x 0.15

= ROI due to operational communications

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Authors

The Authors Lara Dobson Lara Dobson is a researcher and lateral thinker at Staffbase with a diverse qualitative and quantitative research background. Her fields of concentration include solution-oriented research, trend identification, data presentation and interpretation, secondary market research, and competitive analysis.

Frank Wolf As co-founder and CMO of Staffbase, Frank Wolf is focused on building a great company with a product that helps customers reach every one of their employees in a smart and easy way—directly to their mobile devices.

Dr. Jenny Meyer Dr. Jenny Meyer has been analysing how digital technologies change communication, collaboration and work routines in companies, and how this affects firm performance for more than 12 years. After she completed her PhD on this topic she began work as a consultant. She combines her experiences from customer projects, her theoretical background knowledge, and latest research and statistics to help decision makers navigate the changing communication and collaboration lanscapes with new technologies.

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From Theory to Practice Read more about companies from various industries who are putting the numbers to the test and seeing real results with an employee app.

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We’d love to hear from you. Here’s how you can reach us … sarah.castillo@staffbase.com Staffbase Inc. 401 Broadway, Suite 808 New York, NY 10013 United States