CALCULATING RETURN ON PEOPLE
RETURN ON PEOPLE CALCULATOR
What is your company ROP?
Our 'Return on People' metric is best defined as the costs associated with employee dissatisfaction due to a lack of human interaction.
The ROP metric we have developed provides the percentage of an annual travel budget that will appear as hidden costs attached to talent if there is a reduction in travel.
For example, an ROP of 20% suggests that a reduction in travel could lead to an increase in staff turnover that would equate in costs to 20% of the corporate travel program.
The calculation takes corporate travel program combined with company business numbers such as average salaries, and numbers recognized by the HR industry, and supporting all of that with our own quantitative and qualitative evidence from our extensive research.
We recommend Travel Managers partnering with HR counterparts on this initiative to compile numbers as it has the potential to impact companywide future of work discussions, and conducting surveys with the traveling workforce to assess future staff turnover now and in the future, and how it aligns to our survey results that suggest higher turnover when travel and face to face interaction is reduced.
Should you be unable to find numbers within your company, below are some sources that provide industry breakdowns:
Approximately $60k a year including benefits
$189k a year to $563k a year
Median of $323k
Average if 6 weeks across all industries
Can be up to 213% of salary per employee for senior roles
(In our ROP calculator add together Productivity Revenue Lost, Interviewing Costs, and Getting Up to Speed Costs)
Average ranges from 11% to 15%
WHAT DO MY RESULTS MEAN?
Let's say you got an ROP score of 20%, that means that based on the modelling we forecast that 20% of your corporate travel spend will reappear in the future as a cost to the business.
At this time the model does not predict what percentage of travel would need to be reduced in order to see those affects. However, based on the data, we believe fewer face to face interactions will lead to higher turnover and would argue that for the larger travel reduction you are anticipating the larger the future turnover.
We are in the process of compiling a benchmark dataset, and ask for you to share your scores below.
Through initial testing, we have typically seen ROP scores of 10% to 30% when we forecast a 2% increase of job turnover.
Because each company has a different cost base in terms of travel and salaries, plus revenues, and different job turnover levels it is difficult to say without the benchmarking what is a 'good' score.
We encourage companies to conduct their own employee surveys to be able to forecast the potential changes to staff turnover.
If your ROP score is a negative number, that is because you have entered a forecasted a lower staff turnover in the future than you have previously tracked. That is certainly possible, but we believe it to be unlikely results from our survey as well as other third party research.
This model does not consider sustainability goals in the calculation. We encourage companies to consider future goals alongisde talent.
The model is based on data where there is an assumption that it is considered safe to travel again (e.g. post-Covid). No cost factors on safety are considered in the modeling.
FUTURE VERSIONS OF ROP CALCULATOR
To date, we have had 3 versions of the ROP calculator:
V1 was Excel based
V2 was Excel based, with improved analytics
V3 is the online calculator you see today.
While we believe talent is the most important factor in driving a companies success, sustainability, staff safety and DE&I are all of incredibly high importance.
In the future we would like to enhance the calculator to factor in these analytics.
If you would like to join the journey with us to build the enhancements please let us know!
PLEASE SHARE WITH US YOUR SCORES
We love hearing from companies on how they use this website and the calculators.
In the future we would love to provide industry averages, so you have the ability to benchmark yourselves.
Therefore we ask you provide your company scores below. All responses provided below will be anonymous unless you choose to provide your details. At no time will individual scores ever be shared.