A study by Sun Microsystems found that retention rates were an average of 70% for those that participated in mentoring versus 49% for those that didn't participate in mentoring. As such, we've set the value to 30% as a benchmark.
Formula: cost of employee turnover is calculated by first multiplying the number of participants by the avg employee turnover percentage to estimate the number of employees that will leave each year. Secondly, we multiply that by the cost of employee turnover (% of salary) to get the total cost.
Cost of employee turnover (with mentoring):
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Formula: cost of employee turnover, with mentoring, is calculated the same as the above however taking into account the reduction in turnover from mentoring.
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Retention savings formula: cost of employee turnover without mentoring, minus cost of employee turnover with mentoring. ROI formula: retention savings divided by estimated cost of mentoring*.
Engagement ROI
Cost of actively disengaged employee:
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Average cost is estimated to be 34% of the employee salary.
Estimated number of users who are actively disengaged (prior to doing our program):
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Research by Gallup shows that on average, 17.2 percent of an organisation's workforce is actively disengaged. Formula: number of participants multiplied by the percentage of the workforce that are actively disengaged.
Cost of employee disengagement:
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Formula: estimated number of participants who are actively disengaged multiplied by the cost of actively disengaged employees per year.
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To be conservative, we aim to convert 50% of these disengaged people to being engaged through mentoring. Formula: cost of disengagement multiplied by 50%. ROI formula: engagement savings divided by estimated cost of mentoring*
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Overall savings formula: employee retention savings plus engagement savings. ROI formula: overall savings divided by estimated cost of mentoring*.
*Cost of mentoring platform is indicative and an estimate only for ROI purposes. The Brancher team can provide you with a customised quote.
Brancher Pty Ltd and its affiliates provide this ROI calculator as a tool to assist you explore the potential cost savings that your business could achieve when utilising our mentoring platform, so that you can determine whether to further consider our platform for your business. We do not confirm, represent, or warrant the accuracy or reliability of the ROI calculator results, as savings are indicative only and are based on a combination of Market data/variables, and the accuracy of the information you have provided as responses to the questions displayed. Actual savings may vary.
Brancher will help anyone wanting to scale an existing mentoring program, or build a new program from scratch. Our program can be used with corporates, not-for-profits, government, schools/Universities - and even start up communities.
The business case for mentoring is clear
Research shows mentoring has a number of benefits to all involved.
