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  • Writer's pictureElisabeth Nebster

Employee engagement ROI: how investment can bring business benefits

In this Article:

Calculating Employee Engagement ROI

What is your primary business asset? Despite stereotypes that it’s about a property, hardware, or money, your core business asset is people. Noone achieved impressive results alone. The team always drives better performance and higher profit.

Employees can bring much more value to your business than you can expect. Therefore companies aim to involve and retail only top talents in the market to work not with staff but with innovators and enthusiasts. It makes them create efficient employee engagement strategies and implement them by investing time and resources.

According to Future Market Insights, the employee engagement market will surpass $3,8 billion by 2032, so talent-centric trends will turn mainstream soon. But what about ROI? This colossal investment should definitely have outcomes. Here we’ll find out how to create an efficient employee engagement strategy, what results you should expect from its implementation, and how to calculate ROI correctly. Scroll down to explore the details.

How to make sure your employees are engaged

Since all people are different, employees just like clients require a personalized approach to be engaged and be under expectations. But how can you understand that your talents are really involved in the process and ready to move mountains for business success? First of all, they show better productivity: they perform more, handle various tasks easily and feel convenient in cooperation with the team. Engaged employees are usually open to new opportunities and ready to share and implement their ideas. This can make your business move. It’s easy to retain such talents since they are willing to work with you because of challenging tasks, high remuneration, great people around, etc.

But even when the engaged employees leave your company, they also can show commitment to your business. These people might become your clients with long customer lifetime value. They can leave positive reviews on Clutch or other platforms to raise your ranking among other companies. Sometimes engaged ex-employees can even empower your business with new robust partnerships by becoming a communication link between two parties.

We can imagine dozens of scenarios. But the main conclusion is that engaging employees can bring you more than any business initiative you have. Therefore, your talents need to be heard, rewarded and supported.

Employee Engagement Metrics

An efficient employee engagement strategy consists of…

Talent-centric approach

Map your customer-oriented approach to your relations with employees. Create a better environment for them, allow them to work from home to keep a work-life balance, hear their needs and try to satisfy them. Remember that happy employees mean happy clients. Therefore, a talent-centric approach will help you build a trusted and reputable brand in your employees' and customers' eyes.

How to Foster an Employee-Centric Culture

Reasonable investment

Define the areas of investment capable of delivering more value to your business. Encourage talents with higher remuneration when they comply with their OKRs and help you fulfill KPIs. Always invest in education. Your talents need new knowledge and professional growth to bring new ideas to your business and share a fresh vision of your usual processes.

Fruitful ways to engage

You shouldn't forget that people like competitions and routine work should look like a competition to create a healthy desire to work and real engagement in the process. You can opt for various ways to engage employees, but gamification is one of the most efficient methods. Make an in-house competition and define the best employees each month or quarter to appreciate their contribution and support their desire to deliver more.

Following Emergen Research, the global gamification market size was $ 11.69 billion in 2021 and is expected to register a revenue CAGR of 27.4% annually by 2030. It means that investment in this niche can bring you higher ROI. Moreover, this approach was tried by various companies, starting with Mcdonald's and ending with KPMG. As practice shows, it works.

Gamification Market 2019-2030

Convenient software

Manual and routine work kills creative minds and turns them into office plankton. Just implement relevant software to reduce the workload and let talents think about really challenging and high-priority tasks. Of course, remember that your people should be ready for it; otherwise, they won’t use adopted innovations at all.

Convenient software can help you drive the entire employee engagement strategy from gamification procedures (task management, KPIs evaluation) to eliminating manual work. For instance, in-house IT departments usually experience a high workload which leads to tech debt. The case is that they should handle crucial tech projects and additional marketing, sales, design, and HR departments tasks, such as launching marketing campaigns or creating tools for calculating vacations. You can help them focus on important tasks by trying low-code development. Low-code platforms like XME can allow your non-technical specialists to create custom development software at a fraction of the cost, time, and effort. It means that there’s no need to involve techies. All team members can create products with simple logic to cover business needs.

Top metrics to calculate employee engagement ROI

The total number of employees. All employees and permanent contractors that support your company.

Average remuneration. The median of all salaries and rewards you pay your employees and contractors. Here you should also consider the impact and contribution of each team member regarding general business goals achievement. The simple formula here is to sum up the remuneration of all team members in each department and define the average, then do the same thing but calculate the average salary, considering each department’s median.

Employee retention. This metric shows what’s the scale of employee turnover and in what measure your company can retain top employees. You can calculate ROI here by using a simple formula:

Employee absenteeism. This rate shows the availability of your employees during working hours and the time they spend on vacations, sick leaves, etc. You can also calculate it easily by using the following formula.


Following Gallup’s report, 65% of US employees are not engaged. It makes companies fix the situation since the involvement of talents can help businesses achieve better results faster. But enterprises need also keep in mind that investment in employee engagement should bring relevant outcomes such as high retention rates, better performance and productivity, a broad scope of initiatives, and successful practice of their implementation, etc.

You can perform various actions to improve employee engagement in your organization, but we recommend starting with a customer-centric approach and relevant software usage.

If you want to reduce employee workload and help them focus on challenging and first-priority tasks, try XME. fast code platform. Contact our sales team to explore how this solution can help you engage and retain talents.


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