The Ultimate HR Guide to Gain Leadership Buy-In

 

 

 

 

It's important for executives to clearly see the alignment between HR’s strategic position and organizational outcomes. Our goal is to equip HR leaders with research proven data to show the return on investment (ROI) of their engagement strategies to gain executive buy-in and move their initiatives forward.  
 
We know your time is precious, so we don't just want to tell you why the Cost Analysis is useful or what to do with it.  We also want to walk you through how to use it so you're prepared for any meeting. 
 
On this page, you'll find the resources and information to equip you with:
  • How to complete the Cost Analysis.
  • How to understand the research and data.
  • How to present the findings to executives.
  • How to complete each of the calculations.

Table of Contents

Employee Engagement Strategies

Introduction

The role of Human Resources (HR) has changed drastically in the past few decades, transitioning from administrative in nature to a very important and strategic role at the table.  The closer that HR and the organization’s overall business strategies align, the more competitive companies can be when anticipating and responding to changes in the market.  
 
The first step to aligning business strategies is to secure executive buy-in and show the correlation between HR initiatives and the company’s bottom line.  Did you know that 90% of leaders think an engagement strategy has an impact on business success, but only 25% of them actually have a strategy? 
 
That’s why we built the Employee Engagement Cost Analysis, to help HR leaders easily initiate the conversation and show the financial upsides to help move engagement strategies forward. 
 

Getting Started

Step 1: Download Your Free Cost Analysis

If you haven’t already, make sure to download your FREE Employee Engagement Cost Analysis to receive the tools you need to gain executive buy-in!  You'll receive:

  • A branded one-page Cost Analysis to easily customize and present your results. 
  • A Reference Page highlighting all calculations and research sources.
  • A Sparck Engagement Calculator to personalize results based on your company or department data. 

The Cost Analysis isn't just a tool to gain buy-in for an organizational strategy, it can also be used to evaluate different departments and teams to see how an increase in employee engagement can impact their business performance. The opportunities are endless when it comes to engagement and should touch every part of your organization to get the greatest return on investment. 

Step 2: Choose Your Own Adventure

Here are three options for you to quickly capture the information you want: 

Download Now!

Cost Analysis Overview

Cost Analysis Overview

The Cost Analysis is designed to:

  • Help you and other business leaders get executive buy-in to invest in engagement strategies.
  • Create alignment between HR related initiatives and organizational outcomes. 

As we noted before, the Cost Analysis isn't just a tool for an organizational strategy.  It can also be used to evaluate different departments and teams to see how an increase in employee engagement can impact their business performance. The opportunities are endless when it comes to engagement and should touch every part of your organization for the greatest return on investment. 

For the remainder of this page, we’ll walk through each area of the Cost Analysis to ensure you are prepared and ready to gain executive buy-in. The Cost Analysis is separated into two main sections that we will review: Company Projections and Company Solutions (as noted on the left).  

Sparck Calculator Overview

This calculator is a tool to help you determine the financial numbers you need to complete your Cost Analysis Overview (see section above).

The first step is inputting your company data into the the yellow fields (highlighted in the orange box on the right):

  • Turnover Rate (if you don't have this, we've got you covered)
  • Annual Revenue
  • Number of Employees
  • Average Salary (Entry and Executive Levels)

Once you input your data, the calculations will automatically populate!  The values will display in the blue boxes below, each titled section directly correlates with the fields on the Cost Analysis so you can easily transfer them over.  Learn more about the features of the Sparck Calculator by clicking the button below!

Sparck Calculator Overview
Company Projections Section

Company Projections Section

Back to the Cost Analysis Overview, let's start at the top of the page with Projections. Once you have the values from the Sparck Calculator, you can input your data in the area outlined by the orange box on the left.

The Company Projections section focuses on three areas where you'll see the largest financial savings with increased engagement in your organization:

  • Revenue: Engaged employees are more productive, which makes the company more profitable. 
  • Absenteeism: Engaged employees take less time off of work.
  • Turnover: Engaged employees don’t want to quit. 

Highlighted in the white box with the connected arrow to the left, we include research-backed facts supporting these company projections. These will be helpful to reference in your meeting to build credibility. For those executives that want more information, on the second page of the cost analysis we provide an in-depth look at each calculation and cited source.

As a bonus, we include Total Business Value to the left of the page highlighted in the gray box.  This is the projected increase and savings of the three key financial areas in the projection section to show the total opportunity cost with increased engagement.  This is a great way to conclude this portion of the Cost Analysis in the meeting. 
 
Ready to dive into each section?
 

Company Solutions Section

The bottom section of the Cost Analysis outlines the current business expenses and a comparative pricing list to introduce the most popular engagement investments to reap the financial benefits highlighted in the Company Projections section.  We're talking about employee recognition and employee surveys.

Did you know that 90% of employees say that recognition is what helps drive more engagement in the workplace, yet nearly 8 out of 10 employees resign due to not being recognized enough?

As a reminder, the Turnover Section of the Cost Analysis is calculated based on Aon's research showing that 65% of employees quit voluntarily. The number one cited reason why employees quit is because they don't feel appreciated.  It’s human nature, people are hungry to feel valued and employee recognition will pay off tremendously as part of your engagement strategy. 

Let's get started with the solutions section!

Company Solutions Section
Presenting Results

Executive Team Presentations

So now that you have your Cost Analysis results, it's time to present to your executive team and get their buy-in.  

Check out some of our recommendations and best practices to rock your meeting.  If you want more information, we are here to help! Set up a call with one of our Sparck partners to review your results and equip you with our complimentary resources. 

What Our Clients Are Saying

"Sparck's free Employee Engagement Cost Analysis tool was an easy and effective way to communicate how an increase in engagement can directly impact our company's performance.  The customized one-page overview was a great addition to the executive meeting and gave us a way to look at our specific numbers and outline a solution. I highly recommend this tool to HR professionals who are mapping out their internal strategies and want to upgrade to the #BeHeard Premium Report."

Jennifer Hureaux, HR Manager 

Teledyne