ROI Calculator

Explore the potential ROI of prioritizing people enablement. Build high-performing and resilient organizations by investing in Leapsome to drive employee development, productivity, and engagement - even through times of change.

Illustration of two people working on graphs

CALCULATOR #1

How much could you save by investing in better People Enablement processes?

Number of Employees

Average Annual Salary

Employee Turnover Rate

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Productivity Savings

Turnover Savings

Absenteeism Savings

Total Savings

*All data has been supported by Gallup & SHRM

Frequently Asked Questions

How do we calculate productivity savings?

Assuming that every employee is producing as much as they are being paid, increased productivity increases the overall employee contribution toward revenue — proportional to the employee payroll.

A recent Gallup report found that businesses that had highly engaged employees showed an average 18% increase in sales. Read more about why employee engagement is important.

To be conservative, this calculator uses an increase of 5%.

📈 Productivity savings = Number of employees x Average annual salary x 5%

How do we calculate the turnover savings?

Turnover costs include the cost of hiring and onboarding a new person, lost productivity, customer service and errors, training cost (invested in previous employees), and cultural impact. Combined, this is estimated to be 125% of the average annual salary. For an average organization, investing in better people enablement processes decreases voluntary employee turnover by 31%, which is the midpoint between 18% (high-turnover organizations) and 43% (low-turnover organizations).

To be conservative, this calculator uses the lower estimate of 18% reduction in turnover.

📉 Turnover savings = Number of employees x Average annual salary x (125% x your inputted employee turnover rate x 18%)

‍Read more

How do we calculate the absenteeism savings?

Absenteeism can be a symptom of disengagement and a warning sign of employee burnout and fatigue, which has been estimated to cost the economy $47.6 billion annually in lost productivity according to a recent Gallup survey. The gains or savings from decreased absenteeism is proportional to the total employee payroll. Gains from a decrease in Absenteeism equals the Total Cost of Absenteeism as % of Payroll multiplied by the decrease in Absenteeism.

The cost of absenteeism is between 20.9% and 22.1% of the total payroll when considering both the direct and indirect costs as per a study conducted by SHRM and Kronos. We assume that 10% of the costs can be attributed to unplanned paid time off, and this is the figure used in our calculation. A Gallup study also found that business or work units with high employee engagement saw up to 81% decrease in absenteeism.

To be conservative, this calculator uses a decrease of 20%.

🗓 Absenteeism savings = Number of employees x average annual salary x 10% x 20%

Read the Gallup report

Read the SHRM report

What do we mean by average annual salary?

This should encompass all employees within your company, meaning that the average annual salary represents the salaries across all levels. We recommend using either the mean or the median salary.

CALCULATOR #2

How much could you save by investing in the Leapsome platform?

Number of Employees

Average Annual Salary

Employee Turnover Rate

% of employees that are people managers

Number of HR Admins

The number of employees in HR that invest their time in administrating people enablement processes such as performance management, employee engagement, and L&D.

Thank you! Your submission has been received!

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Productivity Savings

Turnover Savings

Absenteeism Savings

Manager Time Savings

HR Admin Time Savings

Total Savings

Absenteeism is when an employee consistently doesn't appear for work, and can be a symptom of disengagement and warning sign of employee burnout and fatigue.

Every employee is producing as much as they are being paid and therefore the increased productivity increases overall employee contribution towards the revenue and is proportional to the employee payroll.

Turnover cost includes the cost of hiring and onboarding a new person, lost productivity, customer service and errors, training cost (invested in previous employees), and cultural impact assumed to be 125% of the annual salary.

*All data has been supported by Gallup & SHRM

How long will it take to implement Leapsome in my company?

Thanks to our best-practice frameworks, Leapsome is ready to use from day 1. Full implementation is usually done in 1–4 weeks.

How do we calculate productivity, turnover, and absenteeism savings?

To calculate the savings, we use the same formula as explained above, with one exception; we use a multiplier as an estimate of how much of the savings could be attributed to the enhancements in your people enablement processes due to the Leapsome platform. We estimate that 50% of the savings could be attributed to Leapsome.

For clarity, the formulas for each are, therefore, as follows:

📈 Productivity savings = Number of employees x Average annual salary x 5% x 50%

🗓 Absenteeism savings = Number of employees x Average annual salary x 10% x 20% x 50%

📉 Turnover savings = Number of employees x Average annual salary x (125% x your inputted employee turnover rate x 18%) x 50%

How do we calculate the HR admin time savings?

Through the utilization of Leapsome for people enablement processes instead of manually processing everything, HR admins can expect to benefit from significant time savings. This is due to the overall ease of use of the platform, the smart automations that power recurring processes, the built-in templates that make creating new processes faster than ever, and the analytics and recommendations which make it effortless to interpret your data.

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To calculate the HR admin time savings, we work on the basis that admins save 10 hours per month. We also calculate the cost of an HR admin hour by taking the average annual salary and assuming that the HR admins are paid for 52 weeks per year and 40 hours per week.

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⏰ HR Admin time savings = Number of HR admins x Number of HR admin hours saved per year x Cost of an HR Admin hour

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How do we calculate the manager time savings?

Through the utilization of Leapsome, people managers can also expect to benefit from time savings compared to managing people enablement processes manually. This is due to having multiple processes in one platform, unifying the experience, as well as the smart nudges, automations, and analytics that create smoother and faster processes for managers.

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To calculate the manager time savings, we work on the basis that managers save 5 hours per month by using Leapsome. We also calculate the cost of a manager hour by taking the average annual salary and assuming that the managers are paid for 52 weeks per year and 40 hours per week. While it is likely to be the case that the cost of a manager hour is higher than the average for all employees, we use the average here to remain more conservative with the estimate.

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⏰ Manager time savings = Number of managers x Number of manager hours saved per year x Cost of a manager hour

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What are the benefits of a people enablement platform?

An all-in-one intelligent people enablement platform like Leapsome becomes crucial to effectively manage employee performance, engagement, and development - especially in times of change. A few benefits include:

- Saves time and money by streamlining multiple HR functions into one integrated solution.

- Provides organizations with the necessary tools to listen to and address issues affecting employee engagement while continuously supporting employee development.

- The data gathered through such surveys and anonymous suggestion boxes can be transformed into action plans that help prevent employee turnover and maintain a high level of morale and productivity.

- By actively investing in employee development, businesses can strengthen their workforce and build a strong foundation for future growth.

In the absence of a people enablement platform, companies are often fighting multiple tools and disparate processes which become a burden on the organization. Due to poorly structured processes, employees lack alignment with company strategy, the environment fails to support employee success, and managers are unable to deliver the individual support to create a culture of feedback and learning. As a result, productivity and engagement suffer, staff turnover increases, and the company becomes less resilient.

Leapsome offers an integrated suite of tools for Goal Setting & OKRs, Performance Reviews and 360s, Competency Frameworks, Learning & Onboarding, Engagement Surveys, Feedback & Praise, Compensation & Promotions, and Meeting Management. Having these processes in one platform brings alignment, environment, and individual support together to create a holistic, interconnected operating system for organizational success.

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