PROVE YOUR INVESTMENT

The cost of the product or service you are measuring the ROI for.

The implementation cost charged by your vendor for setting up their product or service.

How many people on your team are going to be using the new solution?

Average annual salary of the employees on your team. Or just your salary if you are a one person team.

Estimate the percentage of your average user compensation which your organization pays as benefits. If you do not know, 30% is a safe bet.

Estimate the time spent in hours you expect a user to spend learning how to use the new solution.

Number of employees/contractors working for your organization.

Average number of cases (annually) that led to some form of litigation regarding workplace incidents: wrongful termination, discrimination, harassment, etc. If you do not know, the it is estimated there are about 0.4 litigated EEOC cases and 2.25 litigated non-EEOC cases per 1000 employees.

If your new solution will empower you to discover and address issues before they go to litigation, then provide any number lower than the Average Annual Litigation Count. Be bold in your estimation, for example if your current average cases is 10, estimate your future cases for the following year to be 5.

Average sum paid per case in attorney fees and/or the estimated from the time spent by in-house counsel on ligitation defense. This is often somewhere between $75k and can go as high as $400k. Often affected by region and whether or not you have internal or external counsel.

Average amount per case the organization pays plantiffs to settle a case. According to the EEOC $40k is the average discrimination settlement and non-EEOC can be settled for as much as $160k.

Percentage of average annual cases resolved by settlement. If you do not know the average is between 15% to 25%.

The total number of people on your team (including users and non-users of your new solution).

Average annual compensation across your entire team.

If you saw a chart of your team's time usage, what is the current average percent of their time spent on activities related to your new solution. For example, a new hotline solution can include time spent on reviewing reports and managing investigations.

Assumed percentage of time spent after the implementation of your new solution; e.g. if it was 20% target 15%

The average annual pay across your entire organization. This would include both salaried and hourly employees.

Percentage of the average annual employee compensation to replace an employee who quit, typically between 50% to 1. As a conservative estimate, use 50% if you do not know.

The percentage of employees to voluntarily quit their job at your organization during the prior month. If you do not know, use the US & Canadian average of 17%. The lowest average quit rate is about 11%

What do you predict your turnover rate will eventually drop to with your new solution? Use modest targets such as 1% or 2% less than your current turnover rate.

If you have not measured your current workforce engagement, the national average in the United States is about 35%.

What do you predict your workforce engagement rate will increase to with your new solution? Use modest targets such as 1% or 2% more than your current engagement rate.