The formula to calculate the Employee Engagement ROI (EEROI) is:
\[ EEROI = \left( \frac{MGE - MSE}{MSE} \right) \times 100 \]
Where:
Employee Engagement ROI (EEROI) measures the return on investment from initiatives aimed at increasing employee engagement. It is calculated by comparing the total money generated from increased engagement to the total money spent on these initiatives. A higher EEROI indicates a more effective engagement strategy, leading to better financial outcomes for the organization.
Let's say the total money generated from increased employee engagement (MGE) is $200,000, and the total money spent on increasing employee engagement (MSE) is $50,000. Using the formula:
\[ EEROI = \left( \frac{200,000 - 50,000}{50,000} \right) \times 100 = 300 \]
So, the Employee Engagement ROI (EEROI) is 300%.
Formula: \( \text{Employee ROI} = \frac{\text{Net Profit}}{\text{Total Investment}} \times 100 \)
Example: \( \text{Employee ROI} = \frac{50000}{20000} \times 100 \)
Formula: \( \text{ROI} = \frac{\text{Final Value} - \text{Initial Investment} - \text{Total Contributions}}{\text{Initial Investment} + \text{Total Contributions}} \times 100 \)
Example: \( \text{ROI} = \frac{15000 - 5000 - 6000}{5000 + 6000} \times 100 \)
Formula: \( \text{ROI} = \frac{\text{Energy Savings} - \text{Investment Cost}}{\text{Investment Cost}} \times 100 \)
Example: \( \text{ROI} = \frac{10000 - 8000}{8000} \times 100 \)
Formula: \( \text{ROI} = \frac{\text{Benefit Value} - \text{Cost of Benefits}}{\text{Cost of Benefits}} \times 100 \)
Example: \( \text{ROI} = \frac{12000 - 9000}{9000} \times 100 \)
