ROI, or ‘return on investment’ is a formula that evaluates the gain versus the cost associated with a business investment. ROI usually refers to a numerical value that offers a simple insight into whether an investment was worthwhile. However, you can form a deeper analysis by considering the positive effects, such as improved engagement and productivity, that may lead to a financial return in the long run. This is often known as a ‘soft ROI’.
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These positive effects are commonly associated with internal intranet systems. Whilst some companies may shun this technology as ‘millennial nonsense’, the reality is that the impact it can have on employee satisfaction provides a valuable return on your investment. Here, experts in all things intranet, Oak, have rounded up four key ways this technology can increase your businesses ROI.
- Estimate the value of your time
Leading provider of market intelligence for the IT industry, International Data Corporation, estimate that large businesses can spend over $2.5million annually simply looking for information. Another study by American Worldwide management consultancy, McKinsey supports this, having found that the average employee can spend over 1.8 hours daily trawling the web for basic information needed to do their job.
Intranet’s act as knowledge hubs, so your employees can share their knowledge and findings. As this builds up, it becomes an essential database where people can find the information they require, quickly and efficiently.
- Can you put a price on disengagement?
According to a study about retaining people by Oxford Economics the average cost of recruitment and retention is £30,614 per person. This takes everything into consideration from the time spent interviewing to the 28 weeks (approx.) it takes for a new worker to reach optimum productivity.
It is also estimated that two thirds of British workers feel disengaged at work and engaged employees have been found to perform 202% more efficiently than their disconnected counterparts. So, it seems focusing on engagement is certainly in the best interest of your business and its expenses.
- Going green can save you $$$
Printing documents in the digital era is like using a fork to eat soup – a total waste of time. Having access to documents on a cloud based platform not only allows businesses to function more efficiently, but will help cut down your carbon footprint and overhead costs due to less cash spent on printing.
- Keep your employees connected
It’s been reported that up to 74% of workers feel as if they are missing out on company news and updates, however an intranet has the power to change that. Businesses can broadcast important company or industry updates to keep employees connected and informed, thus illuminating the risk of ‘hear-say’ and gossip, which is a renowned productivity killer.
A successful intranet system is proven to boost organisational efficiency, employee engagement and satisfaction, all of which are just some of the factors that should be considered when measuring ROI.