Finding it hard to justify the expense of an intranet? Luckily, we’ve got you covered. Here are five ways intranet software will prove a valuable return on your investment.
There are two types of ROI. For starters, hard ROI is all about the numbers, so is pretty much always measured in monetary form. Soft ROI, on the other hand, isn’t so black and white. Instead, soft ROI looks at the positive effects that’ll lead to a return on investment, such as better morale or employee engagement.
1. How much is your time worth? Well, possibly $2.5 million
Sounds a little crazy, but the folks over at International Data Corporation estimated that larger enterprises can waste up to $2.5 million a year searching for information.
This study wasn’t a one-off either. A McKinsey report found that employees are spending 1.8 hours a day searching for the stuff they need to do their job. To put that into perspective, that’s the same as paying five employees but only four of them show up to work – the fifth is away searching for information but not contributing to much else. Sounds pretty bad. Well, let’s imagine if the four that do turn up are disengaged.
2. Someone seeming a little demotivated? It may cost you £30,614
Only a third of UK workers feel engaged. The rest of them aren’t doing so great. What’s worse is, of the disengaged employees, 73% are looking for other jobs. Oxford Economics’ study into retaining people found that the average cost of having to recruit and retrain a replacement can cost you up to £30,614 per person.
A big slice of this is the 28 weeks it takes for a worker to reach a good level of productivity. This added to logistical stuff like management time spent interviewing, recruitment fees, HR processing… it soon adds up!
It’s in your best interest to keep your team connected. Particularly when engaged employees outperform those who are not by 202%, making 2.5 times the cash.
3. Intranets save more than just trees, in fact over £10,000
66% of businesses have no idea what they’re spending on printing, the ones who do admit to spending upwards of £10,000 a year on it. What’s even worse is most companies feel a big chunk of their printing is pointless and down to a lack of cost control.
So, our advice: don’t be like most companies! Document costs eat up 5-15% of your revenue. And for what? Considering 18% of corporate documents will need renewing in just a month’s time. Setting up an intranet keeps all company files in one place. So no confusion over what the latest document is and, even better, no paper or postage costs for payslips, benefits, rotas and more.
4. Around 74% of employees feel they’re missing out on news – let’s change that
With an intranet, employees are fully connected. Connected employees make for a competitive workforce, a place where you can leverage all of your wisdom to make the right decisions, and fast. Think faster approvals, faster feedback, faster communication, and one correct message for everyone – which is a big deal!
In 2016, a Harris Poll found that 39% of bosses saw gossip as the biggest productivity killer. But it’s not just productivity that takes the brunt, gossip is also a hot bed for bad morale. Having an intranet by your side means all news is straight from the horse’s mouth, with no room for hearsay.
5. Around 79% of business and HR leaders have a big engagement problem. Do you?
A 2017 survey found that the easier it is for employees to connect the more engaged they’ll be, pointing out that 37% of employee happiness is based on how connected they are to their co-workers. But why should you care? Well, in 2015 a global survey found that just 5% more employee engagement leads to 3% revenue growth the following year.
If that’s not enough to convince you, companies with super engaged workforces outperform their competitors by 147% in earnings per share! Meanwhile, firms with disengaged employees have reported 28% less revenue. So keep a smile on your employees’ faces, and your bank balance will thank you.
Although we’ve only presented five, there are lots of ways to measure the ROI of an intranet, and we’d be happy to share these with you to help you build your business case. For Oak clients, their ROI is always increasing as new features are added with no change in the amount you pay and no limit to how much we can shake things up for your business!