logo image

ATD Blog

Case Study: Measuring ROI in Employee Engagement With a Bonus

By and

Wed Apr 27 2016

Case Study: Measuring ROI in Employee Engagement With a Bonus
Loading...

Set in an extremely competitive industry, this case study shows the impact and return on investment of an employee engagement system with a significant bonus attached.

Because of a lack of engagement, National Crushed Stone, a large construction aggregates company, decided to pilot a program of revised employee engagement coupled with gainsharing. The company was able to develop credible data to show the contribution of the new program and the effects that it had on operations.

Advertisement

 

As employees become more engaged, they are rewarded through a gainsharing bonus that shared half of the cost savings. The system design is shown in Figure 1.

Figure 1. System Design

Case Study: Measuring ROI in Employee Engagement With a Bonus-a131f01f1f4bb78250f83bda4147677494fb947e15c31d4611fa7c14c03c92b3

The results are very impressive, exceeding the expectations of all involved. The total monetary benefits of this program was $1,385,336, and the total cost was $129,886. The ROI was calculated to be 967 percent, which means that for every dollar invested in this program, another $9.67 was returned after the dollar was recovered.

This brief case study attempts to take some of the mystery out of measuring the success of engagement, particularly when pushing measurement to the impact and ROI levels. This is the ultimate level of evaluation for executives, where they can clearly see the return on their investments in this important area.

Advertisement

More details on the background, methodology, and case study examples are in ATD’s new book, Measuring the Success of Employee Engagement: A Step-by-Step Guide for Measuring the Impact and Calculating the ROI.

You've Reached ATD Member-only Content

Become an ATD member to continue

Already a member?Sign In

Advertisement
Advertisement

Copyright © 2024 ATD

ASTD changed its name to ATD to meet the growing needs of a dynamic, global profession.

Terms of UsePrivacy NoticeCookie Policy