1) Turnover savings

We estimate avoided turnover by reducing the baseline annual turnover rate by the selected percentage points. Avoided exits are multiplied by the replacement cost (% of salary) to approximate recruiting, onboarding, and ramp expenses.

baseline_exits = team_size * baseline_turnover
new_exits = team_size * (baseline_turnover - reduction_pp)
exits_avoided = max(0, baseline_exits - new_exits)
turnover_savings = exits_avoided * (avg_salary * replacement_cost_pct)

2) Productivity lift

Peer recognition can improve engagement and discretionary effort. We model this as a small percentage uplift on total payroll. Use conservative values (0.5%–2%).

payroll = team_size * avg_salary
productivity_gain = payroll * productivity_lift_pct

3) Manager time saved

Templates and reminders reduce coordination time. We value time saved using the fully-loaded hourly rate.

weeks_per_year = work_days_per_year / 5
hours_saved_annual = hours_saved_per_manager_per_week * managers_count * weeks_per_year
time_savings = hours_saved_annual * manager_hourly_rate

4) Program cost

Includes your subscription and any monthly rewards budget (points, gifts). Costs are annualized.

program_cost = (subscription_per_month * 12) + (rewards_budget_per_emp_per_month * team_size * 12)

5) ROI & net impact

benefit = turnover_savings + productivity_gain + time_savings
net = benefit - program_cost
roi = net / program_cost

Tip: Share your assumptions when socializing results. Run a sensitivity check with the Lean/Standard/Aggressive presets.