Calculating Intranet ROI
Most organizations need an intranet once they get large enough, but making a business case can be challenging without a way to show an expected bottom-line impact.
Intranet pricing varies between vendors, so calculating an intranet’s potential Return on Investment (ROI) is a crucial step toward making a compelling case. We built this savings calculator to give you a head start!
Intranets offer numerous benefits, but some of the most meaningful employee impacts can be felt in three core categories: productivity, onboarding, and retention.
The results above represent the total cumulative impact of savings in all three categories over a period of three years. In the following sections, we’ll address each category in detail.
Inefficient information access presents a major barrier to workplace productivity. A McKinsey Global Institute (MGI) analysis recently found that modern workers spend as much as 20 percent of their work time looking for internal information or tracking down colleagues who can help with specific tasks. The same MGI analysis found that effective implementation of social technologies could improve high-skill knowledge workers by 20 to 25 percent.
How can intranets like Haystack help boost productivity?
Onboarding a new hire is challenging, especially for remote teams—but it’s a critical step that can make or break a new hire’s experience. Providing a structured onboarding process for new employees can improve retention by as much as 25 percent, according to analysis by the Partnership for Public Service and Booz Allen Hamilton.
According to Gallup "new employees typically take around 12 months to reach peak performance potential. New hires need time to shadow colleagues, master workflows and collaborate with key players."
Effective onboarding sets new hires up for success and decreases the time it takes for them to become comfortable and productive in their new roles.
Without structure, the onboarding process can be frustrating for employees and costly for employers, both in terms of the cost of administrative tasks and low productivity.
How can intranets like Haystack support onboarding?
Replacing an employee can be devastatingly expensive—especially for employees with unique skills and organizational knowledge—and that cost only begins with recruiting, training, onboarding and productivity loss.
A higher than average churn rate can also lead to degraded morale for the rest of the team, leaving employees feeling disengaged and more likely to quit. In 2021, Gallup found 74% of actively disengaged workers were either actively looking for new employment or watching for openings.
How can intranets like Haystack support employee retention?
Haystack Team Inc. provides this ROI calculator in good faith to help in the analysis of potential cost savings when purchasing and utilizing intranet software. Data provided for the calculation is the user's responsibility. We do not make any representations or warranties of any kind on the information provided. We also disclaim any liability or responsibility for the accuracy, correctness, or completeness of any information provided. Your results may vary from those provided by the ROI calculator.
The model above reveals the calculations for both desktop and frontline workers over a three-year period, with a combined total. A modern intranet can have a small but still significant impact on churn. Inevitably, the impact percentage is higher for desktop employees than for frontline counterparts as desktop workers utilize intranet software more regularly. Finally, as with the other models, there will always be uncontrollable macroeconomic factors that reduce the saving further.