ROI of investing in FLOWIT?

If we assume that every employee is contributing as much as they are being paid, increased productivity will proportionally enhance the overall contribution of employees to revenue, relative to the payroll costs.

A recent Gallup report found that companies with highly engaged employees saw an average 18% increase in sales. Learn more about why employee engagement is crucial.
To be conservative, this calculator uses an increase of 5%.

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

Absenteeism often indicates disengagement and can signal employee burnout and fatigue, which a recent Gallup survey estimates costs the economy $47.6 billion annually in lost productivity. Reducing absenteeism can lead to savings that are directly related to the total payroll. The savings from reduced absenteeism can be calculated by multiplying the Total Cost of Absenteeism as a percentage of payroll by the reduction in absenteeism.

According to a study by SHRM and Kronos, absenteeism costs range between 20.9% and 22.1% of total payroll when accounting for both direct and indirect expenses. We estimate that 10% of these costs stem from unplanned paid time off, which is the figure used in our calculation. Additionally, Gallup found that businesses or work units with high employee engagement experienced up to an 81% reduction in absenteeism.

To remain conservative, this calculator assumes a 20% decrease.

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

‍Explore the Gallup report‍
‍Review the SHRM report

Turnover costs encompass several factors, including expenses related to hiring and onboarding new employees, lost productivity, customer service issues and mistakes, training investments in former employees, and the overall impact on company culture. Altogether, these costs are estimated to be 125% of the average annual salary. On average, companies that invest in improved people enablement processes can reduce voluntary employee turnover by 31%, which represents the midpoint between 18% for high-turnover organizations and 43% for low-turnover ones.

To stay on the conservative side, this calculator uses the lower estimate of an 18% reduction in turnover.

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

Annual Salary:
This should include all employees within your company, so the average annual salary reflects compensation across all levels. We suggest using either the mean or median salary.

By utilizing FLOWIT for people enablement processes instead of handling everything manually, HR admins can achieve substantial time savings. This is thanks to the platform’s user-friendly interface, intelligent automations that streamline recurring tasks, built-in templates that speed up the creation of new processes, and the analytics and recommendations that simplify data interpretation.

Our internal studies with current clients indicate that the average time savings for HR admins can be around 10 hours per month. To calculate HR admin time savings, we use this average of 10 hours per month. We also estimate the cost of an HR admin hour based on the average annual salary, assuming HR admins work 52 weeks per year and 40 hours per week.

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

By utilizing FLOWIT, people managers can expect significant time savings compared to managing people enablement processes manually. This is due to the platform’s ability to consolidate multiple processes into one unified system, along with its intelligent nudges, automations, and analytics that streamline and accelerate managerial tasks.

Our internal studies with current clients indicate that the average time savings for managers is approximately 5 hours per month. To calculate manager time savings, we use this average of 5 hours per month. We also determine the cost of a manager’s hour by considering the average annual salary, assuming managers work 52 weeks per year and 40 hours per week. Although the cost of a manager’s hour may be higher than the average for all employees, we use the average to provide a more conservative estimate.

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