AUSTRALIA is experiencing its lowest levels of unemployment in more than 30 years and with 21% of Australians tertiary qualified, there is more reason than ever to engage and retain good staff.
This focus on employee engagement has lead many organisations to commit substantial funding to measure engagement and importantly, the cost of disengagement in the workplace.
LifebyDesign.com.au, has launched an online calculator which eliminates the confusion associated with measuring the financial implications of employee engagement.
The calculator, which is available online at www.lifebydesign.com.au/engaged/2_EngagementEconomics.php allows organisations to determine the costs incurred as a result of employee disengagement and to highlight the savings potential of effective employee engagement programs.
Research conducted by the company identified that an organisation of 1000 employees with an average salary of $60,000 and 25% turnover, loses approximately $18m annually in decreased productivity, recruiting and lost training. By engaging employees and reducing turnover by just 3%, an organisation could save over $2.1m per annum.
Company founder and CEO, Ian Hutchinson, says the engagement calculator enables management to quickly, accurately and cost effectively analyse their unique employee engagement position.
“With employee disengagement currently costing the Australian economy $31.5bn per annum and with the expectation that this cost will rise to $100bn over the next 12 months, management teams are increasingly and justifiably pre-occupied with the issue of employee engagement. Our engagement calculator is a simple but powerful tool that allows organisation’s to apply their own human capital statistics to a proven formula — essentially placing a dollar value on employee engagement.
“This calculator provides HR professionals the opportunity to show senior leadership that a commitment to effective employee engagement initiatives can in fact result in significant savings and a far more productive workplace,” Hutchinson said.