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Rolling out an enterprise collaboration tool like Yammer, Slack, Microsoft Teams and Workplace by Facebook is a monumental task, but some of the greatest challenges come after adoption. As a champion for collaboration at your organization, you might be left asking yourself... now what?
In order to prove the value of enterprise collaboration and push adoption to the next level, you must illustrate the tangible benefits of a digital workplace.
Whether you’re presenting to your leadership team or working with departmental movers and shakers, this guide helps you quantify and articulate value to key stakeholders.
The purpose of this resource is to help you estimate the potential value of your enterprise collaboration investments. It is not at all a guarantee of return-on-your-investment. Only you can control the realized value of your enterprise collaboration tools.
Collaboration tools break down silos and increase workplace efficiency, which are crucial concerns of most leaders in today’s business. To demonstrate tangible value you need to frame the impact in terms of your organization’s business goals.
Executives want to see improvement on these, it’s simply a matter of setting baseline metrics and having the tools you need to measure them effectively.
For example, if your internal communications team wants to increase the number of employees who feel connected to their company, identify a benchmark that strikes the heart of that challenge. Internal pre-rollout data is preferable, but external data will get the job done. In this scenario, a poll conducted by Gallup found that 74% of employees feel they’re out
of the loop with company news. Using this example, if you can quantitatively demonstrate how enterprise collaboration reduces the time for an announcement to reach all employees, you are on your way to success.
In order to articulate the value that enterprise collaboration brings, you must firstly demonstrate that employees actively use the tool to communicate with each other. Basic evidence of engagement doesn’t just show that people use the tool, it shows that data is created by its use and holds the potential to provide deeper insights.
No matter which enterprise collaboration platform your organization uses, there are simple ways to find active user numbers. Active usage statistics are valuable as a standalone metric, but they also make calculating the ROI of enterprise collaboration much more effective. Workplace by Facebook provides usage insights to all organizations using their paid product, Yammer and Teams offer activity reports, and Slack has an extensive analytics dashboard. Take advantage of these resources to get the ball rolling on proving engagement.
If you want to unlock the true value of a digital workplace for your organization, full buy-in from your leadership team is a necessity. This means you need to frame success in a way that makes key stakeholders pay attention: the impact of collaboration on the bottom line. There are three key formulas you can use, which calculate the impact of collaboration on onboarding costs, hiring costs and communication costs.
Nothing is certain in life except death, taxes, and onboarding costs. There’s no avoiding them completely, but with the right strategy they don’t have to create such a burden. Training Magazine estimates that it costs $986 to onboard a new employee.
Forrester reports that Workplace by Facebook can reduce employee turnover by 10% and Microsoft Teams can reduce employee turnover by 11.8%. With decreased turnover, you can expect to onboard fewer employees that would replace those roles.
It’s no secret that finding talent is expensive. SHRM estimates that the average cost-per-hire is a staggering $4,129. With a number like that, a significant reduction in employee turnover has a very real impact on the bottom line.
Again, Forrester reports that Workplace by Facebook can reduce employee turnover by 10% and Microsoft Teams can reduce employee turnover by 11.8%. With this data point, you can calculate a reduction in annual hiring costs due to decreased turnover.
Time spent sharing knowledge and communicating with one another is incredibly expensive. Employees spend up to 80% of their time at work communicating—that’s 32 hours out of a 40 hour work week!
However, efficient, real-time communication can increase employee productivity by up to 25% according to a study by McKinsey. Understand the financial impacts of leveraging collaboration to decrease the amount of time employees spend looking for knowledge, thereby increasing productivity. By considering an average salary of USD $47,060, you can calculate the total cost avoided when your organization invests in tools that decrease communication inefficiencies.
One of the greatest areas for potential ROI from collaboration tools is through risk management. The ease and flexibility of cloud applications has led to their rise across the workforce. Various free or inexpensive applications are easy to spin up, but IT can’t monitor, secure or control company data if they don’t know which applications employees use.
Enterprise collaboration helps employees work faster and more efficiently, as many other cloud applications do, but also makes it possible for infosecurity leaders to protect sensitive data in digital workplace environments.
IBM released an extensive report in May 2019 on the costs of data breaches, and those findings informed the following recommendations. Use these approaches to ease the concerns of wary infosecurity leaders.
According to IBM, organizations are 29.6% likely to experience a breach over a two-year period. Data breaches are a tough reality, so it’s crucial that organizations consider the sensitive data living in their digital workplaces. A study from McAfee shows that over 4% of all messages shared in collaboration contain sensitive data.
Despite the importance of company culture, human resource teams often have an opaque view into its actual state. Collaboration tools create a treasure trove of data that Human Resources team can leverage to achieve goals.
According to a study by Cornerstone OnDemand, 3-5% of all employees meet the criteria for termination due to toxic behavior. These toxic employees are expensive and harmful to brand reputations. A study by Harvard Business School estimates a cost of $12,489 to replace a toxic worker, as well as the surrounding employees who left voluntarily in response to a toxic team member. Furthermore, research shows that a toxic employee has a 30% impact on the productivity of the 20 employees closest to them.
However, collecting sufficient hard evidence to rationalize firing a toxic employee can prove difficult. As employee communications move onto digital platforms, uncovering evidence becomes easier. Whether it’s discovering harassment or identifying consistently negative behavior on enterprise collaboration platforms, human resources teams can leverage third-party monitoring solutions and revolutionize the way they identify and deal with toxic employees.
While enterprise collaboration isn’t a revenue driver per se, there are two tangible ways the digital workplace impacts the bottom line, as outlined previously: cost reduction and cost avoidance.
Use the formulas provided earlier in the guide to calculate a total estimated impact of your enterprise collaboration. Divide that by your annual investment to get the quantitative return on your investment.
This calculation connects dollars your organization spent with tangible dollars of value delivered. Presenting a research-backed ROI metric to your leadership will reliably answer the question: was enterprise collaboration worth our investment?