We think that when you’re implementing a new solution, not only should you be able to state the value to the business, but you should also be able to quantify it. That’s why we created this piece to calculate the ROI of Whale in your business.
Companies lose billions of dollars a year by failing to share knowledge. $31.5 billion a year, to be exact, has been the exact number stated lost by Fortune 500 companies (International Data Corp). We also know that Employees spend around 26 days each year searching for information, which is valuable time that could be undoubtedly better invested (Critical Knowledge Transfer Book).
But what is the specific value and ROI of using Whale to your business?
Whilst Whale solves a number of challenges within a business we tend to look at two main value contributors for our customers;
- The time cost of onboarding new team members and
- The amount of money lost by the business when team members have to look for information
You could also look at specific use cases such as sales enablement, the impact on customer service and onboarding but more about that another day.
We’re going to explore the two use cases mentioned here.
1. Employee Onboarding
In employee onboarding, the aim is to reduce the time it takes to onboard a new team member and reduce new employee turnover.
The objective of frictionless employee onboarding is to:
- Allow people to be productive as fast as possible
- Be an inspiring experience to maximize retention of new employees
- Be optimized in terms of cost (i.e., digital to reduce travel, in-person costs)
When calculating the cost of employee onboarding let’s consider the following assumptions, although you may change these according to your specific costs:
- 5 – The number of new employees to onboard per year
- $60,000 – The average annual cost of an employee
- 240 – The number of days worked
- $12,000 – The cost of hiring a new employee
Generally, we’ve found that with the implementation of Whale;
Time spent onboarding new team members is reduced by at least 5 days and turnover of new employees is reduced by at least 5%.
| BEFORE USING WHALE | AFTER IMPLEMENTING WHALE | |
| Time spent in onboarding in days | 45 | 30 |
| Turnover of new employees in the first six months | 20% | 15% |
There are costs associated with the adoption of Whale which include;
- Content Migration which is variable depending on the organization and the current state of content.
- The cost per user
For the example of this experiment, we’ve assumed a cost implementation of around $900.
Item | Amount |
Project cost | -$900 |
Saving – Ramp up time reduction | $18 750 |
Saving – Retention improvement | $3 000 |
With Whale, you’d achieve an annual savings of $21 750 and an ROI of 24.
2. Time spent searching and time to document
It’s not only the employee experience that suffers when team members need to leave their workspace to go and look for information in a digital environment. There’s a cost to the business termed employee operating cost.
The objective of Whale for SOP & Knowledge Sharing is to:
- allow people to easily find what they need
- be more consistent in execution
- empower teams to be at the top of their game
When calculating the cost of time spent searching for information consider the following assumptions, although you may change these according to your specific use case;
- 20 – The number of employees
- $60,000 – The Average annual cost of an employee
- 240 – The Number of days worked
Let’s assume the cost for implementing Whale as your Knowledge Sharing solution specifically to include the cost of the platform and the cost of documenting; which would typically occur at the beginning of project implementation.
With Whale, you’d achieve an annual savings of $45 000 and an ROI of 12.5 in lieu of time spent searching for information.
What do our customers say?
But don’t take our word for it! Check out our reviews on G2.
Interested in how implementing Whale might impact your business?
Check out how MortgageBanc, part of the Fairway Group, scaled operations during CoVid.
Or take our Readiness to Scale assessment to see where to begin in scaling your business.
Readiness to Scale Assessment
Almost everyone wants to scale their business but where to start? Take our Readiness to Scale Assessment to find out! You’ll be presented with 10 statements that correlate to one of three specific scaling stages in business.