Internal Communication Justification Tool by SupremeLord


									                         "Why is good employee communication so important during an economic downturn?"
Maintain productivity
No news is definitely not good news from an employee communications perspective. October 2008 Research from Weber Shandwick showed that 71% of
people felt that their company should be communicating more about current economic problems. Unfortunately, the uncertainty caused by lack of internal
communications can cause staff to be less productive.

               Workforce Week reported that 48 percent of staff said that the economic uncertainty has caused them to be less productive at work.

Retain revenues in a shrinking market
Due to the economic downturn, it is likely that demand for your organization’s products or services is reducing. In order to keep revenues healthy, it is
necessary to increase the overall market share.
In a competitive marketplace, organizations need to be agile, to reduce process inefficiencies and to increase effectiveness across the business. Effective
employee communications plays a critical role in achieving these goals with an investment that’s small compared to value gained.

                                                          Good employee communication is a competitive advantage.

Maintain operational effectiveness
Uncertainty (job security, future career potential, fear of increased workload etc.) due to a lack of effective internal communication can cause high performing
employees to jump ship. Low morale within remaining staff can impact customer interactions and damage brand identity. Uncertainty can also damage a
company’s culture. Competition for internal resources can increase between (and inside of) departments. Focus can shift onto projects that ‘look good’ but
don’t really contribute towards real business objectives. Good employee communications can enable you to retain your best employees, protect your company
culture and maintain the strength of your brand.
According to the U.S. Department of Labor, it costs at least one-third of a new hire's annual salary to replace them. There are also associated opportunity costs
                                                      such as lower productivity during re-training to consider.

    "Companies with the most effective employee communication programs provided a 91 percent total return to shareholders (TRS) from 2002 to 2006,
 compared with 62 percent for firms that communicated least effectively. Moreover, a significant improvement in communication effectiveness is associated
                                                     with a 15.7 percent increase in market value ."
                                                                                  Watson Wyatt
Read more about communicating during an economic downturn.

                                        Quantify the value of effective Internal Communications:
                             Enter the number of employees in your organization        2,300     (Numbers in orange are variables that can be changed by the user)
                                      Enter an employee's average annual salary      50,000
                                                                Salary per hour           28     (Calculated automatically)
                                                                                                                                          Now work through each tab filling out variables in orange…
                                                                  Snap Channels - Productivity improvement calculator
 The impact of effective employee communication can be far reaching. For example, the time to market for product launches can be reduced, uptake of new products can
be faster due to a more effective sales force, customer service and retention levels can be impacted by a more informed and engagement customer support team. The list
     is extensive. Fill out the orange variables to assess just a few potential productivity improvements made possible by the Snap Internal Communications Channels.

     Productivity cost caused by email overload                                                               Productivity cost using Snap Mag to aggregate email
               Average number of ‘news and admin’ emails/wk             25                                                           Issues of Snapmag (per week)                        2
            Time to recover from each email interruption (Mins)          1    (research)                          Time to recover from a single interruption (Mins)                      1
              % of employees react to emails within 6 seconds         70%     (research)                                                                Total cost              $102,222     p.a
                                     Total Interruption cost      $894,444 p.a.                               How the Snap channels can help with email overload
                                                                                                                Est. Value of increased productivity                         $792,222 p.a.

     Meeting Productivity                                                                                     Targeting and sending message via Snap Channels
               Time spent (per team) covering general updates           0.5   hrs per week                                                                   Hours                       2 /wk
                          Average number of staff in a meeting           15   per week                                                                  Total cost                 $2,667  p.a
                    Number team meetings across the business             20   per week
                                  Total Administration cost       $200,000 p.a.                                 Est. Value of increased productivity                         $197,333 p.a.

     Providing 'helpdesk' functionality by email or phone
        Time answering same question more than once (email) 3 hrs per week                                    Centralized helpdesk functionality using via Snap Interactive
       Time answering same question more than once (phone)  2 hrs per week                                       Time answering same question more than once         0 /wk
                                  Total Repeat Activity cost        $6,667 p.a.                                                                   Total cost        $0 p.a
                                                                                                              Helpdesk functionality via Snap Interactive

      Other possible productivity improvements:                                                                 Est. Value of increased productivity                             $6,667 p.a.
     (Value not included in calculation)
                                     Increased engagement
                               Staff more involved in decisions          Snap Poll, Snap Interactive
                                Improved information cascade                      Snap Poll                                         Cost for 3 Snap Channels                            $8   p.a.
                                                                                                              (E.G. SnapMag, Snap Interactive, SnapScreensavers)
                   Managers equipped to manage teams better       Snap Alert, Snap Ticker, Snap Interactive
                                                                                                                                                   per Employee
                                  More effective workforce
                                                                 Snap Shots screensavers, Snap Interactive,
                         Staff more aligned to company vision
                                                                              Snap Ticker etc
                                                                                                                                  Total Cost for Snap Channels                    $17,250    p.a
                             Staff share ideas and best practice        Snap Poll, Snap Interactive           Note) The cost of the Snap Channels varies depending on organization size, number of channels
                   Increased response for actionable messages              Snap Alert Snap Ticker                  and in-house / hosted solution. Please contact Snapcomms for a more specific pricing.

                                           Reduce inaccuracies             Various Snap channels
                                                                                                                   Total value of                                     $978,972 p.a
                             Staff product knowledge improves                 Snap Quiz
                                                                                                               increased productivity
                                                                 Snap Channels - Cost Saving Indicator

When budgets are tight and the future looks uncertain a knee-jerk reaction can be to pull back to the bare essentials and not try anything new. The Snap Internal
                              Communications Channels can easily be cost justified by the resultant savings made in other areas:

        Managing face to face meeting invites                                                             Managing face to face meeting invites
                              Managing group meeting invites            5   hours per month                           Hours managing Snap RSVP (per month)                 0.2
                                                  Total cost       $1,667 p.a.                                                                     Total cost              $67    p.a
                                                                                                          Snap RSVP
                                                                                                                                             Cost saving             $1,600 p.a

        ‘Awareness’ campaign via posters, flyers, drinks coasters etc                                     ‘Awareness’ campaign via screensavers
                                Awareness campaigns       4 per year                                                       Manual input hours (per campaign)                10
                                Manual input in hours   25 hours per campaign                                                                      Total cost            $1,111   p.a
                              Average production cost 1000 per campaign                                   How the Snap Channels can assist an awareness campaign
                                                  Total cost       $6,778 p.a.                                                               Cost saving             $5,667 p.a

        IT deploying 'Group Policy' screen savers                                                          Screensavers deployed by comms team
                           External IT support agency charge       1,000    per screensaver                                 Comms team time per screensaver                0.2    hrs
                                            Internal IT hours          0    hours per screensaver                                   Number of screensavers                   4    per month
                                       IT internal charge rate         0    per hour                                                               Total cost             $267    p.a
                                     Number of screensavers            4    per month                     Snap Screensavers can be deployed quickly and easily
                                                  Total cost      $48,000 p.a.                                                               Cost saving           $47,733 p.a

        Staff E-magazine production costs                                                                 Snap Mag as Staff E-Mag
                             Gathering and editing content =            8   hrs / wk                                                       Approving content                 1    hr / wk
                                         Total annual cost        $10,667 p.a.                                                                     Total cost            $1,333   p.a
                                                                                                          HTML formatting not required and content is 'user generated'
        Printed magazine costs                                                                                                               Cost saving           $19,698 p.a
                                       Magazines per year =            4    p.a.
                                          Magazine copies =         1000    per run                                             Cost for 3 Snap Channels                    $8    p.a.
                             Gathering and editing content =          40    hrs / magazine                      (E.G. SnapMag, SnapAlerts, SnapScreensavers)
                                                                                                                                               per Employee
                                           Production cost =        0.18    per page
                                         Number of pages =             6    per magazine                                      Total Cost for Snap Channels           $17,250      p.a
                                         Distribution costs =        400    per issue                     Note) The cost of the Snap Channels varies depending on organization size, number
                                         Total annual cost        $10,364 p.a.                             of channels and in-house / hosted solution. Please contact Snapcomms for a more
                                                                                                                                            specific pricing.

                                                                                                    Total Cost Savings per year =                                    $57,448
                                                                      Improving the effectiveness of existing channels

Existing channels such as the intranet or video communications can be an expensive investment. Snap can help improve the effectiveness of these channels in simple
                                                                         inexpensive ways:
                                                                                                                 Increase in Intranet effectiveness                          10 %
         Typical Intranet costs                                                                              How the Snap Channels can improve the effectiveness of the intranet
                                     Initial intranet set up cost =    $60,000 (intranet cost calculator)
                                 Ongoing annual intranet cost =        $45,000 ( intranet cost calculator)

                                                                                                                                        % increase in viewing =              20
         Typical video costs                                                                                         Increase in Video effectiveness                         20 %
                   Manual input in hours per year (ex. prod cost)          100                               How the Snap Channel can increase message cut through
                                        Production cost per year       $10,000
                                Total video production cost/ year      $12,778 p.a.
                                                                       Risk of Ineffective Internal Communications
   At best, Internal Communications breakdown can be a major source of inefficiency. At worst it can be a source of litigation, lost customers and increased staff

Communications compliance
   £75,000 fine (in UK) for failing to comply with 'Information and     115,000   US$
                             Consultation of Employee' Regulations
                                       Employee Litigations per year         2
                                       Attorney costs per litigation     20000
                            Average settlement costs per litigation      30000
                               Average internal hours per litigation       100    per litigation
                                                        Total cost     $220,556 p.a.

Impact of poor customer service
                                        Average value of customer        20,000   US$
     Additional customers lost due to poor internal communication            20   p.a.
                                                        Total cost     $400,000 p.a.

Increased staff turnover
    Increase in staff turnover due to poor internal communications          2%    of total staff

                                               Cost to replace staff      33%     of annual salary
                       Productivity loss due to retraining new staff        2     Wks per new hire

                                                        Total cost     $854,833 p.a.

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