R&R ROI Calculator

Calculate the ROI of your R&R program

A well-researched R&R program positively impacts employee engagement, productivity, retention, and more. See how your organization can reap the benefits from an effective R&R program.
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The ROI from your R&R Program

How did Empuls calculate the results?

Recommended Annual Rewards Budget
The recommended annual rewards budget is taken as 1% of total payroll. SHRM recommends an annual R&R budget of 1-2% of an organization's payroll[1].
Onboarding Savings
Onboarding Saving is the  salary given to a new hire during the onboarding period.
Additional Revenue
Additional revenue is taken as five times the salaries of retained employees as typically employee salaries are 15%-20% of an organization's revenues.
Total investment cost
The total investment cost is the sum of Recommended Annual Rewards Budget and Total Empuls Platform Costs.
Total R&R Impact
Total R&R impact is the sum of Turnover Savings, Productivity Gains, Absenteeism Savings, Onboarding Savingsand Additional Revenue.
Productivity Gains
The Total Productivity Gain is the product of the total number of employees, their average annual salary, and the increase in productivity.
While Gallup's research[4] says productivity increases to 21%, we have taken 20% here.
Turnover Savings
The turnover savings is calculated by multiplying the average cost to replace an employee multiplied with the number of employees estimated to be saved/retained.
According to Gallup, the cost of replacing an employee is between one to two times of their annual salary. We have taken it to be 1.5 times[2].
According to research by Bersin and Associates a meaningful recognition program reduces voluntary turnover by 46%.
Absenteeism Savings
Absenteeism Savings is the product of the number of employees with their daily salary and reduction in absent days. We have taken 2 days as the reduction based on Gallup's research[4] and the average days of absenteeism[5].
Total Returns
Total Returns is calculated as the Total investment cost subtracted from the Total R&R impact.

References

  1. 1. Recommended Annual Rewards Budget: SHRM report titled, Using Recognition and Other Workplace Efforts to Engage Employees.
  2. 2. Turnover Savings: Gallup's report titled, State of the Global Workplace 2021.
  3. 3. Bersin & Associates' Research.
  4. 4. Gallup's article titled:  How employee engagement drives growth
  5. 5. Data from US Bureau of Labour Statistics.
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