Employee Experience ROI calculator

Net profit is a crucial financial metric that reflects the amount of income that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue. It's a clear indicator of a company’s financial health, showing what is left over from revenues after all the firm's costs are taken out. Net profit is sometimes referred to as the bottom line, net income, or net earnings.

Formula: Annual Revenue × Profit Margin = Net Profit

Profitability increase is calculated by comparing the change in net profit margin (net profit as a percentage of revenue) from before to after the implementation of Culture Amp. This figure comes directly from the Culture Amp customer interviews conducted by Forrester.

Formula: Profitability Increase = (Net Profit After − Net Profit Before) / Net Profit Before × 100%

Productivity improvement and productivity recapture are key figures used to quantify the efficiency gains achieved through the implementation of Culture Amp. These metrics were estimated based on interviews with organizations using Culture Amp, as documented by Forrester.

Productivity Improvement: This refers to the percentage increase in efficiency that HR teams and managers experience when using Culture Amp's tools and features. It is calculated based on the observed reduction in time required to complete specific tasks, such as deploying engagement surveys, analyzing survey results, and developing strategic action plans. The improvement rate of 20% indicates that tasks are completed more quickly and effectively, allowing HR professionals and managers to achieve their goals with less effort compared to before the implementation of Culture Amp.

Productivity Recapture: This metric quantifies the portion of time savings that HR teams and managers can reallocate to other high-value activities as a result of the productivity improvements gained through Culture Amp. A recapture rate of 50% suggests that half of the time saved through increased efficiencies is redirected towards tasks that further contribute to the organization's strategic objectives, such as developing more targeted employee development programs or focusing on higher-level strategic planning.

The increased productivity of managers is calculated by considering the portion of their time spent on coaching and performance management activities, the productivity improvement realized from using Culture Amp, and the portion of time recaptured for other value-added tasks.

Formula: Increased Productivity = Number of Managers × Portion of Time Spent on Coaching and Performance Management × Productivity Improvement × People Manager Salary × Productivity Recapture

The percentages for productivity recapture, productivity improvement, and the portion of time spent on coaching and performance management are derived from the Culture Amp customer interviews conducted by Forrester.

The increased productivity of the HR team is calculated by assessing the proportion of their time dedicated to HR-specific tasks, such as employee engagement surveys and performance management, that is optimized through the use of Culture Amp. The calculation also considers the efficiency gains (productivity improvement) achieved with the platform and how much of the saved time is redirected towards strategic HR initiatives (productivity recapture).

Formula: Increased Productivity= Number of HR Team Members × Portion of Time Spent on HR Tasks × Productivity Improvement × Average HR Team Member Salary × Productivity Recapture

The percentages for productivity recapture and productivity improvement are derived from the Culture Amp customer interviews conducted by Forrester.