If you had bought stock in Amazon or Netflix on just the right day in the right year your R.O.I. would have been phenomenal. It would have been 200% in one year! (Stock in Priceline actually led the pack with over 500 %.) Think about it, your interest in the bank is less than ½ of 1%. A return of 10% or 20% these days is great but such investments carry risk. Now, are you ready?…the Amazon stock return of 200% or Priceline at 500% doesn’t begin to get close to the return from R3Results. Our results if we work together can be 1,766% in one year.
Careful and thorough studies have shown that sickness results in losses on average of $5300 PEPY (per employee per year). The other loss areas like workplace violence, workers comp, third party lawsuits for injuries on premises, theft both internal and external combine to equal about this same amount again. So, in total about $10,600 PEPY. If we reduce that 25% that is a $2650 per year profit gained per employee. (Auto accidents, white collar crime of embezzlement, product liability are not included in this tally.) Rates for our training may vary depending on services we provide and your number of employees, but using $150 per year as a figure, the R.O.I. formula would be $2650/ $150 x 100 = 1,766 % R.O.I. There it is. It’s that simple.
But this greatly understates the real results. Here’s why. When you are under attack or constant stress, speaking metaphorically you tend to bring your fists up to cover your face, you hunch your shoulders up…in other words you assume a defensive posture. Your field of view narrows down. You are not going to do your best creative work in this state! So when a company and its employees start to experience less threats, less losses, fewer accidents, reduced tensions and stresses, and when people start to learn how to work together and enjoy challenges and they gain the ability to be heard and give their best, the result is much more productivity and creativity. As business guru Peter Drucker pointed out long ago, the guy running the forklift truck out back is going to know more about that operation and possible improvements in that area than anyone in the executive office. But does that guy feel included to contribute his ideas? Does he want to?
So let’s say that our training is not experienced as the dreaded boredom of typical training but instead as a highlight of experiences during the year, something that people look forwards to and enjoy participating in. Let’s say you overturn the 87% employee dissatisfaction that Gallup reports in their survey. Let’s say you get a new climate and everyone working their best. Can we agree that would result in a 10% improvement in their overall production and creative contributions? If the average salary is $30K per year at your company that is $3000 PEPY. That’s really conservative. We’ve seen the difference between bad climate/ low esteem workplaces and great climate places. It’s not a 10% difference! In a former business of mine in the construction industry two employees with equal skills and equal productivity when supervised, once unsupervised could easily have a 300% difference in productivity. That’s right: the one guy got three times more done than the other. The reason was attitude. One was self-respecting and pro-company. The other was going through all sorts of immaturity and problems and was anti-company.
So the difference could be 300% or more but let’s stick with the 10%. So now you have $2650 + $3000/ $150 x 100 = 3,766% R.O.I. That’s a realistic number. There is no investment that can possibly pay off equal to this. You hear talk about how important education is. This is education for your existing workforce in just the most crucial things to achieve this result.
In doing the cost/benefit analysis you have to not just look at the $150 cost. You have to look at the $5650 benefit. Unlike the great Amazon stock investment where you got 200% R.O.I., to get this 3,766% R.O.I. you have to grab the bull by the horns. (That wasn’t a very original expression, oh well.) You have to actively participate. You have to lead. But we will be there every step to help you lead. We’ll lead together. And your employees will become leaders. We all pull in the same direction and the result is like no other return on investment you could get. As a side benefit, aside from the money and profits, everyone feels better.
Keep in mind that cutting losses is not sexy. Sales is sexy. Getting a new office is sexy. Cutting losses, not so. But when you see the results in terms of profits, then it is sexy again. And our training is not the “wake me up when it’s over” type of training that is so common. It is exciting. Doing it is fun and brings people together and makes people realize new capabilities. So while cutting losses sounds like paint drying, the actual practices of defusing confrontations, being as sharp as a detective, learning wellness, communicating so skillfully that what throws other people over now is smoothly handled by you — that is pure pleasure. It just happens to result in a tremendous increase in profits as a side effect.