Why use employee satisfaction analytics tool: Facts and insights for Management


This comprehensive guide outlines strategies to assure management to invest in digital tools for employee engagement and satisfaction. The roadmap emphasizes both business side and human-oriented key strategies and tactics for navigating the complex process of obtaining approval for the tool that enhances employee engagement and satisfaction, contributing to overall organizational success.


In today's rapidly evolving digital landscape, investing in digital tools for employee engagement and satisfaction is no longer a luxury, but a necessity for businesses looking to thrive. 

HR directors often recognize the necessity for incorporating digital tools such as Luppa, aiming to streamline and gain more in-depth insights into employee satisfaction and engagement, however, when it comes to securing budgetary approval for these tools, management might find it challenging to empathize with the need, making it a potentially challenging task to obtain approval. That's why having a well-crafted roadmap is essential.

In this guideline, we will explore both business side and human-oriented key strategies and tactics that you can employ to assure decision-makers to invest in digital tools for employee engagement and satisfaction. From showcasing the benefits of these tools, such as increased productivity and retention rates, to demonstrating their impact on bottom-line results, we will provide a comprehensive roadmap that you, as managers can follow to effectively encourage stakeholders.

Our goal is to help you navigate the complex process of assuring management why use employee satisfaction analytics tools and to equip you with the tools and strategies to make a compelling and evidence-based argument.

Business-side arguments: It’s all about numbers

To influence management to invest in digital tools for employee engagement and satisfaction, one of the most essential steps is to effectively showcase the benefits and advantages these tools bring to the organization. Management needs to understand how the tool and employee engagement can directly impact the organization's bottom line and contribute to its overall success.
One common concern is the cost associated with implementing digital tools. You should emphasize the long-term cost savings and return on investment that these tools can bring. By illustrating how digital tools can streamline processes, reduce inefficiencies, and improve productivity, you can demonstrate that the initial investment is outweighed by the long-term benefits.

Financial impact of employee (dis)engagement

Employee engagement has emerged as a critical factor in organizational success, and the findings from Gallup's meta-analysis highlight its profound impact on various aspects of business performance. The positive correlation between high levels of employee engagement and significant profit growth underscores the importance of fostering a work environment that encourages and supports employees.

  • High employee engagement correlates with a 10–15% increase in profit.
  • Highly engaged firms report 20% higher productivity.
  • There is a 41% reduction in absenteeism in highly engaged companies.
  • Engaged employees have an 87% lower likelihood of leaving the organization.
  • Companies with low engagement experience a 37% higher rate of absenteeism.
  • Low engagement leads to an 18% decrease in productivity.
  • Profitability is 15% lower in companies with low engagement.

Moreover, engaged employees can significantly impact an organization's financial health. In 2023, Gallup reported that disengaged employees cost the world $8.8 trillion in lost productivity, equivalent to 9% of global GDP.

Budgeting the brain drain: the true cost of employee turnover

Another key aspect to emphasize is that employee turnover is a significant drain on a company, impacting both time and finances. Onboarding a specific individual takes a considerable amount of time, diverting resources from existing employees who have less time to dedicate to their work. Here are some important and interesting findings to refer to, according to Gallup studies.

Recruitment costs - direct costs of hiring a new employee

On average, recruitment costs can range from 15% to 33% of an employee's annual salary.

Example: For an employee earning $50,000 annually, recruitment costs could be between $7,500 and $15,000.

Onboarding costs - training replacements and management time

Training costs typically range from 10% to 20% of an employee's annual salary.

Example: For an employee with a $50,000 salary, training costs could be between $5,000 and $10,000.

Productivity loss - new employees taking time to reach the productivity of an existing person

The productivity loss during the learning curve can vary, but it's often estimated to be equivalent to 50-75% of the employee's monthly salary during the initial months.

Example: If an employee earns $4,000 per month, the productivity loss during the learning curve might be $2,000 to $3,000 per month.

Moreover, studies predict that replacing a salaried employee can cost 6 to 9 months of their average salary. A HubSpot report found that lost productivity costs businesses $1.8 trillion every year.

Aligning digital tools with organizational goals and objectives

To further strengthen the evidence-based case for digital tool investment, you need to align these tools with the organization's goals and objectives.

Illustrate how employee engagement and satisfaction digital tools like Luppa can play a pivotal role in recognizing both the positive aspects and drawbacks of the existing culture, policies, and practices. Furthermore, elaborates how it can serve as a valuable tool in shaping actions for better business outcomes. 

For instance, when faced with challenges related to high turnover rates and employee disengagement, by using Luppa's analytics, you can pinpoint the root causes of turnover, implement targeted strategies to improve retention, and proactively address employee concerns, fostering a more stable and engaged workforce.
By aligning digital tools with the organization's goals and objectives, you can show that the investment in these tools is not only beneficial for employee engagement and satisfaction but also directly contributes to the organization's overall success.

Keep track with industry and market trends

By integrating the importance of benchmarks into the discussion, you can further emphasize the need for a digital tool to track and analyze employee satisfaction and engagement, enabling the organization to measure its performance against industry benchmarks and drive continuous improvement. Benchmarking allows organizations to compare their employee satisfaction and engagement metrics, salaries and working conditions with industry standards and best practices and provides insights into areas where the organization may be falling behind or excelling compared to industry peers, enabling targeted improvement efforts.

Involve them in the process and present a comprehensive implementation plan

Another crucial step is presenting a comprehensive implementation plan that outlines the steps, timeline, and expected outcomes of the initiative. This plan should address key stakeholders' concerns and provide a clear roadmap for successful implementation. By doing so, you can demonstrate the readiness to successfully implement digital tools for employee engagement and satisfaction.

By involving them in this collaborative process, you can foster a sense of shared responsibility, as well as ensure that their concerns and perspectives are heard and addressed, ultimately leading to greater support for the investment in digital tools.

Showcasing success stories

To make the case even stronger, you should showcase success stories and case studies of organizations that have achieved significant improvements in employee engagement and satisfaction through the use of these tools.

By presenting concrete examples of how digital tools have transformed organizations, you can provide decision-makers with tangible evidence and examples of the benefits and return on investment. 
As revealed by Hay Group and Fortune Magazine, the utilization of employee engagement for strategic purposes is a key factor that sets apart the world's most admired companies. By recognizing the value of engagement, these companies can harness its power to drive their success and outperform their competitors.

Follow up with actions

To maintain momentum and ensure the investment in digital tools for employee engagement and satisfaction becomes a reality, you must follow up with actions. This involves implementing the agreed-upon roadmap, monitoring progress, and continuously evaluating the impact of the digital tool.

You should also establish key performance indicators (KPIs) to measure the success of the initiative. These KPIs can include metrics such as employee satisfaction scores, productivity improvements, and retention rates. By regularly tracking these metrics and reporting on progress, you can demonstrate the tangible impact of the investment.

You can even gain insights into employee satisfaction with supervisors and upper management, turning management performance into a measurable KPI. This fosters accountability, incentivizing leaders to contribute to a supportive workplace culture. Position the tool as a strategic investment to enhance leadership effectiveness and foster a more engaged workforce.

By taking these actions, you can reinforce the commitment to employee engagement and satisfaction and ensure that the initiative continues to deliver value over time.

Human side arguments: Make each employee count

Digital tools have revolutionized the way organizations operate, especially when it comes to employee engagement and satisfaction. Tools such as Luppa empower employees by giving them a voice and a platform to express their opinions, concerns, and ideas. 

This sense of empowerment fosters a positive work environment, where employees feel valued and motivated, leading to higher levels of engagement and satisfaction. When employees are engaged and satisfied, they are more likely to perform at their best, stay loyal to the organization, and contribute to its success

Decision-making based on employee feedback is crucial, as employees constitute a company's greatest asset. While attention is often directed towards aspects deemed important by individuals, it is equally vital to listen to employees and base strategic decisions on their insights. The utilization of digital tools like Luppa provides a profound understanding of such matters.

Through the implementation of the tool, you gain clarity on the root causes of problems and employee dissatisfaction. This insight becomes instrumental in enhancing retention and reducing turnover.

In addition to business-centric arguments, it is imperative to emphasize the importance of employees, recognizing their significance in the overall success of the company. The company's culture is not static; it evolves, and we must respond to changes to avoid turnover and disengagement among employees. By actively tracking specific feedback from employees, you can foresee potential issues and proactively address them before they escalate into problems.
To genuinely foster a happy, productive, and high-quality company, it is crucial to communicate to your employees that you not only hear them but also value their opinions.


Investing in digital tools for employee engagement and satisfaction is no longer a ‘nice-to-have’, but a ‘must-have’ for organizations aiming to thrive in the digital era.

By following the roadmap outlined in this article, and demonstrating the benefits of digital tools, aligning them with organizational goals, you can build a compelling case for digital tool investment.

Apply the insights gained from this guide, and strategically draw facts and data specific to your company's dynamics when approaching your management. 

Emphasize the critical importance of understanding your organization's specific context and draw parallels with relatable examples, underscoring the urgency and significance of a personalized strategy for optimizing employee engagement and satisfaction.

Ultimately, the investment in digital tools empowers employees, fosters a positive work environment, and drives organizational success. 

By embracing tools such as Luppa, organizations can stay ahead of the curve, attract and retain top talent, and achieve their strategic objectives in an increasingly digital world.

Ready to embark on the journey to enhance employee engagement and satisfaction through digital tools? Let's make it happen! Reach out to our expert team today, and together, we'll pave the roadmap to your organization's success. Contact us for a personalized call and take the first step towards a more engaged and satisfied workplace.

Continue reading our blogs in order to learn more about employee engagement and concrete tools that provide you with help in employee retention.