Recognition ROI Calculator
Estimate the business impact of peer recognition in minutes. Model turnover savings, productivity lift, and time saved against your program cost.
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Results (annual)
- Turnover savings$54,000
- Productivity gain$30,000
- Time saved (managers)$4,140
- Program cost$5,988
This model is directional, not a guarantee. Adjust assumptions to your context.
Methodology & assumptions
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.
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