The ROI of Speakfully

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If you’re coming to this blog post seeking hard figures pertaining to Speakfully’s cost-saving and return-on-investment-enhancing abilities, you’ve come to the right place… with a caveat. Statistics pertaining to workplace mistreatment inherently sell themselves short. 

That’s because the majority of those who experience mistreatment in any of its many forms at work do not go on to report it. But even with that in mind, let’s take a look at some of the costs associated with the workplace mistreatment whether it winds up being reported or not.

Settlement Payouts

In the fairly uncommon instance that a mistreated worker doesn’t just report their experiences to their own company, but also files a formal complaint with the EEOC, we do have some data surrounding monetary benefits they receive

“Charging parties who received monetary compensation for being sexually harassed at work were awarded $24,700 on average. About half received less than $10,000. Big paydays for sexual harassment discrimination charges are vanishingly rare – only 1 percent of charges resulted in monetary compensation over $100,000.”

These figures shouldn’t be interpreted as a reason to make reporting more challenging. Rather, six-figure settlements indicate the worst case scenario—for company and employee. For an award that large to be granted, the mistreatment has to have been persistent, and severe. And making it easier to address mistreatment at its onset is a great way to avoid escalation.

Legal Fees

Branching off of the above section, it’s worth noting that the payment figures mentioned pertain solely to what the mistreated employee receives. That’s not factoring in the additional cost of litigation or the associated opportunity cost! According to the EEOC, “internal resolution of claims that do not result in legal fees takes an average of 275 days.” Think of all the things your organization could accomplish if its worker hours weren’t focused on rectifying cultural issues in a reactive, rather than proactive way.

Turnover

It can probably go without saying, but an organization that tacitly enables widespread mistreatment through inaction is an organization that is going to experience a lot of employee turnover.

Bonusly estimates that “an organization with 500 employees and an average annual salary of $65,000 that loses 90 employees per year to turnover has an annual employee turnover cost of just over $3,000,000.” They’ve built an estimated employee turnover cost calculator so you can see for yourself how much money your own company like loses due to turnover. The calculator factors in:

  • Recruitment costs
    • Relocation packages
    • The 51 days it takes on average to fill a position
  • Training and onboarding costs
  • Lost institutional knowledge
  • Decreased productivity and lower morale

Loss of Productivity

Whether through decreased motivation, increased distraction, some combination of the two, or outright absenteeism, workplace mistreatment takes its toll on workers’ ability to perform their jobs. This of course, is a huge negative for employers as well.

A Canadian study on the consequences of workplace harassment estimates that employers can expect “an average cost through lost productivity of $22,500 per person working in a team affected by harassment.”

According to analysis of the 2010 National Health Interview Survey, employees who have been “harassed or bullied at work in the previous year were 1.7 times more likely to have had at least two weeks off work than those who had not.”

Costs Associated With Speakfully

Pinning an exact figure on the costs of turning a blind eye to continued cultural issues in your workplace is difficult. But even without assigning a precise dollar amount to it, you can clearly see that not only does mistreatment impact employee well-being, it can prove devastating to your organization’s bottom line.

Speakfully is free for individual users, and extremely affordable for organizations looking to bring its comprehensive suite of documentation, support, and reporting tools to their teams. Contact us today to find out more about how Speakfully can bring about positive cultural change to your team, and save you money.