Drive 10x return on innovation by implementing a robust idea management platform
There are at least 100 crore companies in the world that depend on their people to drive and grow their business. The more engaged these people are, the more better ways they will find to solve problems in an innovative way.
Let’s say on an average the company spends around $10,000 per employee in salary paid each year.
Global Surveys indicate that less than 40% people are highly engaged in their job. This means, every business is unable to leverage the full potential of its remaining 60% people since they are dis-engaged.
If we assume that disengaged people on an average are just 50% productive, we can conclude that the company is at a loss of at least $5000 per employee each year – in terms of non-productive hours.
Imagine if the company decides to invest into a platform (like Indonis that helps it to engage 100% of the work force through the process of rewarding best ideas and people) and spends around $100 per employee per year. Now just try to think what if this decision delivers even as little as 10% increase in employee productivity per employee, the company would be saving itself from a loss of at least $500 per employee. This clearly translates into a huge “5x” savings for the company.
The impact of this will not stop there. Further add to this the possibility that each employee comes up with at least 10 ideas in a year. Even if one idea from those delivers a $1000 worth of benefits (cost savings, time savings, more revenue per customer etc), that would add up as yet another “10x return” for the company.
Extending this further, let’s say the company decides to give away 30% of the generated benefits back to the employee, the employee gains around $300 more that year. But again, it’s not just about that reward amount, it’s the positive impact and higher level of ownership that kicks in which inturn not only drives the productivity higher but also has a team-effect where-in more and more team members are influenced and motivated to repeat the same success.
This way, the company starts to benefit from high level of collaboration amongst its employees – a sure fire way of driving sustainable innovation – directly impacting the bottom and top lines. Further, employees who feel valued and respected for their ideas find it un-necessary to switch jobs, in fact they would rather turn around as brand ambassadors for the company and promote it even more – to their friends, their families and network.
In short, the company by now is reaping exponential results out of this decision and investment. Just by investing 1% of the annual employees salary, the company opens itself to leverage at least a “15x Return on Innovation (RoInn) within a year.