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How to calculate the ROI of your internal communications agency

HR, now more than ever, holds a strategic position at the decision-making table, emphasising the need to prove the return on investment (ROI) for every initiative - including those aimed at boosting employee happiness and engagement.

Whether an internal initiative or the investment made into hiring an internal communications agency, a positive financial impact needs to be measured. 

What is ROI?

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment. In the context of HR and internal communications, it's about demonstrating that every pound spent on enhancing employee engagement and communication translates into tangible benefits for the company. With HR professionals now playing a crucial role in strategic planning, it's imperative that investments into people and internal comms not only foster a positive work environment but also contribute to the organisation's bottom line.

Calculating ROI from internal comms initiatives

To navigate the complexities of measuring the ROI of internal communications, several metrics and outcomes can be considered. Here are ways businesses can quantify the returns from their internal communications efforts:

Increases in employee engagement levels: Regular pulse surveys can provide insights into how engaged employees feel. An upward trend in engagement scores post-implementation of certain communications strategies is a positive indicator of ROI.

Reduction in churn: Employee turnover is costly. By examining churn rates before and after specific internal comms initiatives, companies can assess the impact of improved communications on retention.

Increased speed of new starter setup time: The time it takes for new hires to work at full capacity can significantly affect productivity and, ultimately, profitability. Enhanced internal comms can streamline onboarding processes, reducing the time to full productivity.

More staff utilising employee support schemes: An increase in the usage of support schemes following targeted communications indicates that employees are more aware and willing to take advantage of available resources, contributing to overall wellbeing and satisfaction.

More employees living by company values: When employees understand and embody company values, it creates a cohesive culture that drives performance. Surveys and feedback can measure alignment with company values pre- and post-internal comms campaigns.

Enhanced knowledge of company direction: Employees feeling informed about the company's direction and future plans is crucial for alignment and motivation. Pulse surveys can gauge whether communication strategies are effectively conveying this information.

Leadership visibility: The visibility of leadership and their communication effectiveness can be measured through employee surveys. Increased visibility and interaction between leadership and employees often correlate with higher engagement levels.

Calculating the ROI of internal communications is about connecting these metrics to financial outcomes. For instance, reduced churn rates can be quantified by calculating the cost savings from not having to recruit and train new employees. Similarly, increases in employee engagement can be linked to higher productivity levels and, consequently, increased revenue or profitability.

Work with an internal comms specialist today 

If your company is seeking support with its internal communications strategies, then you’re in the right place. Learn more about how The Comms Guru can provide a positive return on our internal comms investments here by getting in touch today


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