Being able to measure employee engagement ROI or human resource ROI is critical if you want to prove your value to your organization. In this blog, we help you demonstrate the employee return on investment to the C-Suite by investing in internal communications email software. 

As an internal comms pro, you may have come across the perfect internal communications tool or internal communications software for measuring employee engagement. 

You were giddy with excitement. You could finally figure out what employees want by measuring employee engagement!

But when you excitedly tell the C-Suite about this great new tool, you’re dismayed to find they don’t quite share your enthusiasm. Instead, they ask you the dreaded question.

“That’s all well and good. But what is the ROI of measuring employee engagement?”  

And you have no idea what to say. You don’t have the answer for them.

Does the above situation sound familiar to you?

Presenting a business case to the C-Suite on why a certain internal communications software will help you with boosting and/or measuring employee engagement, ultimately resulting in higher business revenue ain’t no easy task.

But it’s certainly not impossible. First off, let’s look into how employee engagement can impact any business’s bottom line. Having a solid understanding of this will help you make a better business case to the C-Suite and win!

How to Demonstrate the ROI of Measuring Employee Engagement

Why is Employee Engagement Important for Your Business?

It’s really quite simple. When employees are engaged at work, they are likely to be happier and more productive.

For instance, a Customer Service Representative at your company is more likely to go out of his way to help customers if he’s engaged with his work and loves his job.

The more help he’s able to provide a potential customer, the more likely the customer is going to end up purchasing your product or service, resulting in higher sales and more business revenue.

So, employees and employee engagement have a significant impact on your organization’s bottom line. In other words:

Engaged employees = Higher ROI

And if you’re able to make your engaged employees into employee advocates, that’s even better for your company’s ROI.

Still not convinced? Let’s look at some stats.

Stats on the Value and Importance of Employee Engagement 

So if you have, say 5,000 employees, this means you can grow your profits each year by $12,000,000. That’s pretty impressive, isn’t it?

Case Studies Evaluating Employee Engagement ROI 

And if you’re looking for specific case studies from certain companies that have demonstrated the correlation between ROI and employee engagement clearly, we’ve got those for you too!

The first one gives you some interesting stats from the Standard Chartered Bank.

This case study reported that bank branches with highly engaged employees attained a 16% increase in profit margin growth when compared with those branches experiencing low levels of employee engagement.

Another company, Fabick CAT, was able to improve upon its industry net sales by 300% by focusing on employee happiness.

On the flip side, what happens when you don’t ensure your employees are engaged?

You have people working for you that just don’t give a damn anymore and sales are bound to plummet. Let’s look at the other side of the picture.

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The Cost of Disengaged Employees

According to the Gallup State of the American Workplace report, almost 70% of employees are disengaged at work, costing companies $450-550 billion every year. The report further points out that disengaged employees result in lower productivity levels leading to a decrease in sales and high turnover rates, which in turn amp up the cost of recruitment and training. 

All the above points demonstrate the importance of keeping your employees engaged at work. Otherwise, they may end up leaving. Which doesn’t really help your company’s situation. 

According to OfficeVibe, it costs about 20% of an employee’s annual salary to replace them and this number can be as high as 200%!

Okay, so we’ve established why employee engagement is important for your organization and how it impacts the company’s bottom line. But what to do next?

How can you further prove the ROI of employee engagement, the value of employee engagement or the human resources return on investment?

Well, the answer lies in measuring, measuring and measuring some more!

Measuring Employee Engagement

measuring employee engagement with analytics(Image Source)

How can you start measuring employee engagement? How do you know which tool is the right one to fully gauge how engaged or disengaged employees are.

The answer lies in having a solid understanding of your employees, their needs, as well as your organization’s overall goals.

We also suggest adopting a multi-touch approach and using a mix of different tools to track and measure employee engagement.

This is where you need to do some investigative work. Run surveys to ask employees questions on how engaged or disengaged they are at work. Leverage the power of internal influencers and ask them how engaged or disengaged employees in your organization feel. 

Remember, the more data you gather, the more you’ll be able to demonstrate to the C-Suite why they should invest in any kind of employee engagement tool.

Let’s go over why we think an email tracking tool, such as ContactMonkey Internal Comms is the best way to measure employee engagement and help prove the ROI of employee engagement.

Measuring Employee Engagement Using Email

ROI of employee engagement(Image Source)

In case you didn’t know, ContactMonkey is an email tracking tool designed for internal comms pros to measure how engaged employees are via email.

But why should email be your primary mode of measuring employee engagement?

Well, for starters, it’s one of the most preferred mediums through which people wish to receive communications.

According to an employee preferences survey we conducted a while ago, 74% of respondents surveyed said they prefer to receive communication messages via email.

This isn’t surprising given that the recent State of Internal Communication 2018 report by Ragan and RMG revealed that 98% of communicators use email as their primary channel for spreading company news, with nearly 49% of IC pros pushing out content through email weekly and another 34% emailing daily.

We also believe that internal comms pros are their company’s internal marketers and should act and think like marketers. If you look at email as a marketing channel, you’ll find it has the best chances of proving ROI as opposed to other mediums.

ROI employee

According to Litmus, the ROI for email marketing is roughly twice that of other digital channels—if not better—and blows away the returns seen with traditional media channels like TV, radio, and direct mail.

href=”″ >Measure Engagement with Email Metrics


Because email is still dominating the digital marketing world, it means that it needs to be given some serious consideration.

Email is not just a medium through which marketers can reach customers but also an important channel through which internal comms pros can reach employees.

Although email marketers are largely well-versed in the importance of email and how to reach their target audience, many comms pros are still lagging behind when it comes to delivering engaging emails.

This is where an email tracking tool, such as ContactMonkey, can help you keep track of employee engagement.

Which Email Metrics Can Help You Keep Track of Engagement?

1) Opens: Opens let you know whether people are being informed and in the know of important company announcements.

From a high open rate you can deduce that people received the information you wanted them to and that your subject lines are working.

If your open rates are low, you need to come up with catchier subject lines. Always remember to test different subject lines to see which ones resonate more with your audience.

2) Link Clicks: A high click-through rate tells you that the content you’re sending out is relevant and/or entertaining to your audience and the biggest sign that your employee engagement is at a healthy level.

A low click-through rate can be a sign of two things: either your links aren’t relevant to your employees OR what the subject line promised isn’t being delivered on in the body of your internal emails.

3) Location: Being able to tell where employees are opening their emails can be helpful for big companies with branches in different cities or even different countries since it allows you to improve your internal emails’ personalization and targeting efforts.

By tracking which content resonates the best in any given branch or location, you’ll be able to better segment your internal emails and increase engagement levels.

4) Employee Engagement Surveys: Collecting employee feedback is something we all struggle with. More often than not we send out yearly surveys that fail to accurately measure employees.

That’s why, we have developed pulse surveys, social reactions, star ratings and employee comments within our email template builder for Outlook or Gmail.

Now you can encourage employees to interact and give feedback via internal emails by adding pulse surveys, social reactions, star ratings, Like buttons, and employee comments to your employee newsletters.

Identify in real-time what content, updates and announcements your employees are engaging with. All feedback is reported anonymously to encourage open and accurate responses.

By consistently keeping track of the above metrics using ContactMonkey’s dashboard analytics, you’ll be able to show the C-Suite what the stats are like.

Are employees engaged? Are they opening your newsletter? Are they responding enthusiastically to companywide announcements via email?

You can further boost employee engagement by using personalization and segmentation within your emails with ContactMonkey.

Personalization and segmentation is a hot topic in marketing but often ignored by comms pros.

Personalized emails and subjects lines increase click-through-rates (CTRs) by 14%.

Campaign Monitor further reports that segmenting email contacts into various groups according to age, gender and location, can lead to a 760% increase in revenue from segmented campaigns.

You can also take advantage of our email template builder to build beautiful, responsive HTML emails or choose from our library of free templates!

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So, there you have it.

All the stats and case studies you need to tell the C-Suite exactly what they need to know about the relationship between ROI and employee engagement.

And if you start using ContactMonkey, you’ll have concrete metrics and stats to show upper management exactly what employee engagement looks like.

Email remains one of the best ways to reach and engage your target audience.

According to one study, the median email marketing ROI is 122%, which is four times higher than any other digital marketing channel.

By using the above stats, as well as specific case studies we’ve provided you with, you are well on your way to showing the C-Suite exactly how measuring employee engagement will help boost ROI in the long run!

Want to learn how to track your internal emails using ContactMonkey? We can set up a personalized demo for you and your team. Just click on the button below to book your demo. 

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