Published on: October 06, 2015
Successful companies consider their workforce as an investment, not an opportunity for cost savings. They then look for ways to maximize that investment (Return on Employee Investment® or ROEI®). Technology plays a key role in increasing your ROEI® making your company more successful and profitable.
An HR system is often evaluated on how efficient it makes the HR employee with daily tasks and measured by its Return on Investment (ROI). The ROI equals the total costs saved or efficiencies gained divided by the total cost of ownership. However, the real value of an HRMS solution is as an investment that helps employees reach their full potential, improve motivation and strengthen engagement (ROEI®).
Employee engagement is the emotional commitment an employee has to the company and its goals. Highly engaged employees work with passion. They drive innovation and move the organization forward. On the opposite end of the spectrum, actively disengaged employees are unhappy and act out through lost productivity, accidents, theft and turnover. Disengaged employees cost the US economy at least $350 billion a year.
High employee engagement clearly results in increased retention and lower turnover. In addition, having an engaged workforce offers quantifiable results to the company bottom-line.
- Companies with high employee engagement show an average of 28% Earnings per Share (EPS) growth versus 9.4% for companies with low engagement
- Highly engaged business are 3.4 times more financially effective than low engaged businesses
- Customer satisfaction is enhanced as 70% of engaged employees understand their customers’ needs versus 17% of disengaged employees
- Companies with low engagement have 62% more accidents than companies with high engagement
In the US, only 30% of employees are engaged in their workplace; the worldwide number is even lower at 13%. This means that there is a large number of employees who are putting in their time but are not putting passion or energy into their jobs. These numbers show that there is a tremendous opportunity for companies to improve profit, performance and ROEI® by increasing their level of employee engagement. In order to strengthen employee engagement, company leaders need to make caring for their workforce a priority. Every interaction with employees has the potential to influence their engagement.
Implementing and using an integrated product like Sage HRMS enables more engaged employees through functions including employee self-service, training development, and performance management. According to one study, having an integrated Human Resource Management System (HRMS) provides a 270% higher return on investment than stand-alone HR systems. Sage HRMS is an integrated solution designed to maximize your ROEI® by using rich, precise analytics and by empowering your employees.
To learn more about increasing employee engagement, download our whitepaper, “ROEI®: Return on Employee Investment®, Increase Competitiveness on Your Biggest Asset”. This paper looks into investments that can help a company maximize the value of its workforce and shows how technology can help improve ROEI® and build a more profitable and successful business.
If you are ready to increase your ROEI® by empowering and engaging your employees, then an HR management solution, like Sage HRMS, from Mindover Software may be what you need. Contact one of our software experts today to discover the value an on-premise or Cloud-based HR solution could bring to your business. Mindover Software has been providing award-winning software systems and consulting solutions spanning the business lifecycle to small and medium sized business. Now, with consultants in Dallas, San Antonio and Austin, Mindover Software provides strong local support with the resources of a national company.