ROI for offsites is easy to calculate if you set it up properly.
Maybe you need to justify an offsite to your boss. Perhaps you’re just keen to make sure you get the best value.
Here’s how to do it.
1. Quantify the problem before you start
Before you do anything else, quantify the problems
- include non-tangible benefits: How will solving the problem help? What will it do for customer service, morale, presenteeism, absenteeism?
- count the cost of the staff time: How many hours or minutes does it take to do the process now, and how many will you save when you fix the problems? Multiply this by the cost of labor and how often your area does this process.
- count the cost of the offsite: It will cost you staff time to be at offsite. Multiply the cost of staff by the number of staff. Add in the cost of the venue and the facilitator.
- count the opportunity cost: What does it cost you to not to solve this? Everyday that you don’t fix the problem, what does it cost you in lost customers or angry clients? What is it costing you in customers when you make a mistake, pass on the error or make them wait for the solution?
- think about the ongoing costs: If this problem happens every day then remember to multiply by at least a year’s worth of time to get a reading on what it costs.
2. Compare the costs and benefits