ENGAGEMENT CALCULATOR

Numerous study findings support the links between employee satisfaction/ engagement and customer satisfaction and employee productivity and ultimately financial results. Engaged employees are more innovative, more productive, more committed to customer satisfaction, and accordingly, produce more profits for their organization than their less engaged peers. So, what's lower levels of engagement truly costing you?

(Note: One may assume that those employees not engaged are operating at 90% productivity, or a 10% loss in productivity; and those that are actively disengaged are operating at 70% productivity, or a 30% loss in productivity -- use your own experience to calculate your losses.)

After you use this calculator, think about this:

  • How much money would your organization save if you could improve employee engagement and subsequent productivity by just one percent?
  • How could your organization use those dollars if they weren't thrown out the door in lost productivity (training, enrichment programs, total rewards, incentives, etc.)?

Note: Do NOT use commas as separators in numbers.

The Metrics of Disengagement

     
Your Situation
 
Example
A.
Percent of workforce not engaged
%
55%
 
 
B.
Loss of productivity from those "not engaged"
%
10%
 
 
C.
Percent of workforce actively disengaged  
%
19%
 
 
D.
Loss of productivity from those "actively disengaged"  
%
30%
 
 
First, Estimating the Annual Cost of Disengagement to Your Team or Department 
 
 
Your Situation
Example
E.
Total annual payroll of group under consideration
$
$4750000
 
 
F.
Number of employees in the group
 
80
 
 
G.
Average payroll of employees in group = (E ÷ F)
$
$59375
 
 
H.
The value of the productivity and subsequent        
 
compensation lost each year due to your employees
that are "not engaged" = (A X B X F X G) 
$
$261250
 
I.
The value of the productivity and subsequent        
 
compensation lost each year due to your employees
that are "actively disengaged" = (C X D X F X G) 
$
$270750
 
J.
Total annual cost of disengagement to your        
  team or department:        
 
- in payroll $'s = (H + I)
$
$532000
- in full time equivalent employees = ((H + I) ÷G)   
9.0
 
 
Next, Calculating the ROI from Improving Engagement Levels
K.
Estimated reduction in lost productivity of        
  "not engaged" employees subsequent to investing        
in reducing their level of disengagement
%
20%
 
 
L.
Subsequent loss of productivity from those        
"not engaged" = (B X (1 - K))
%
8%
 
 
M.
Value of reducing level of disengagement for        
"not engaged" employees = (K X H)
$
$52250
 
 
N.
Estimated reduction in lost productivity of        
  "actively disengaged " employees subsequent        
to investing in reducing their level of disengagement
%
20%
 
 
O.
Subsequent loss of productivity from those        
"actively disengaged"
%
24%
 
 
P.
Value of reducing level of disengagement for        
"actively disengaged" employees
$
$54150
 
 
Q.
Amount invested in improving employee productivity
$
 
$100000
 
 
R.
Return on investment ((M + P) / Q)
%
106%
 
 
Finally, Calculating the Cost of Disengagment of Any One of Your Employees
a. The employees who are not engaged cost you 10% of their payroll
List the employees who are not engaged and their respective annual compensation:
Employee
 
Compensation
   
Cost of Their Disengagement
- example  
J. Smith
 
$65000
   
$6500
 
- employee #1  
$
 
$
  - employee #2  
$
 
$
- employee #3  
$
 
$
 
- employee #4  
$
 
$
  - employee #5  
$
 
$
  - employee #6  
$
 
$
 
   
 
   
b. The employees who are actively disengaged cost you 30% of their payroll
List the employees who are actively disengaged and their respective annual compensation:
Employee
 
Compensation
   
Cost of Their Disengagement
- example  
T. Jones
 
$48000
   
$14400
 
- employee #1  
$
 
$
  - employee #2  
$
 
$
- employee #3  
$
 
$
 
- employee #4  
$
 
$
   
 
   

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