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Who Says Fun Can’t Produce Measurable ROI?

Now that corporate Britain is setting its sights on growth again, bosses face the challenge of hiring and keeping the best people – the very people whose enthusiasm and ambition will shift company performance into a higher gear.  At the same time there’s a lot of work still to be done to dispel the lingering uncertainties over job security that stalked the corridors during those lean recessionary years.

All of which has brought Motivation back to the top of the HR agenda.  At KDM we’re receiving a lot of enquiries for social-style internal events, on top of the purely business-focused activity that has characterised our order book in recent years. We’re already seeing more requests for team events, engagement activity and incentive experiences, as well as a resurgence in demand for family fun days.

But we’re also hearing that some CEO’s are pretty dismissive about fun-style corporate activities. They are questioning the benefit of purely social events as contribution to corporate performance and dismissing them as an unnecessary luxury because the outcomes, and therefore the return on investment from such events, are difficult to quantify.

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To KDM, this viewpoint misses the bigger picture.  Companies that are committed to raising and sustaining levels of motivation amongst their workforce need to apply a strategic approach to their internal events.  It’s absolutely true that a one-off party or anniversary celebration is a blip in the calendar that has the same effect on company-wide motivation as a crash diet has to sustained weight loss. The feel-good factor fades as soon as ‘real life’ returns.

And, as with any other business strategy, the starting point must be a measurable objective. This could very easily be that of reduction in staff turnover. Experts estimate that it costs around twice an employee’s salary to find and train a replacement, so reducing churn is already a critical goal in all companies.

We’ve been helping some of our clients to devise a calendar of motivational activity – which can include anything from quiz nights to on-site massage sessions.  Using current staff turnover figures as a baseline, it’s easy to monitor churn over a period of a year.  Further metrics can be supplied from annual employee well being surveys, examining such factors as how valued employees feel, to what degree they are proud to be working for their company and to what extent they would recommend their employers to job seekers.  The statistics enable you to progressively measure the effects of a long-term motivational strategy.

So making staff feel appreciated, recognising the important role that all of our families play in our daily lives, and creating an occasion to thank employees and their loved ones for continued support, turns out to be a sound business investment with measurable return, after all.

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