Offsite ROI
Today, I attended a workshop for Chiefs of Staff
On how to calculate ROI for company offsites.
Here's what we reviewed
Costs for hotel rooms
Costs for booking flights
How to ensure your AV systems are working
How to pit vendors against each other to lower bids
How to beg your CFO to spend any money on this event
Here's what was completely missed:
The actual projected RETURN from doing an offsite.
Sure, we discussed some potential hand-wavy employee engagement benefits and improvement in survey results.
But not one number, not one dollar amount, not one straight-line was drawn
Between doing a company offsite
And financial benefits to the company.
Here's what it left me feeling:
What a colossal miss.
So often we gloss over the impact of business activities, not because the impact is small, but because the impact is difficult to measure.
And that's a terrible excuse
For not paying attention to something
That could literally make or break your business.
So here's one way to look at the potential financial RETURN on a good offsite:
Most companies who do offsites say that they experience an increase in employee engagement post-meeting, at minimum.
(At Pearl & Elmore, we're unlocking much more, but let's just talk about minimum expectations)
According to Gallop, highly engaged business units enjoy a 23% difference in profitability from low engagement units.
So, if Gallop is correct,
That means that for a business making $4M in profits per year,
Going from an unengaged workforce to an engaged one should result in ~$1M being magically added to the bottom line.
Due to a combination of factors, such as decreased turnover, decreased absenteeism, lower hiring costs, better productivity, higher quality work product, safer practices, less shrinkage, and better overall customer outcomes.
How much does your hotel cost matter in the face of that kind of return?
I'll tell you:
It doesn't.
In fact, it's a waste of time to worry about
When you could be spending time thinking about
How to maximize the insane return you can get
From bringing your remote team's best people together
For ~48 precious hours.
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