Measuring Intranet ROI: Tangible and Intangible Benefits
Every business investment needs to align with that business’ overall strategy, and an intranet is no different.
To get executive buy-in, intranet advocates must present a case that shows tangible ROI.
A modern intranet built on SharePoint is a great option for companies that already use Microsoft products. In this blog, we’ll break down how to measure these benefits, share some real-world examples, and help you craft a compelling argument for why a SharePoint-based intranet might be the key to your organization’s success.
Key Metrics to Track for Intranet ROI
- User Adoption Rates: High adoption rates indicate the platform delivers tangible value to users. Monitor trends over time to reveal usage patterns. PeopleOne, our modern intranet platform, enhances user adoption by enabling the employees to access the intranet content on Microsoft Teams. With PeopleOne on Teams, employees can stay connected in a familiar app, receive targeted information, access documents, and participate in surveys and polls.
- Employee Engagement: Intranet engagement metrics, such as the frequency of interactions (likes, comments), feedback submissions, and participation in polls or forums, give insight into how employees are using the platform to connect and collaborate. High engagement signals that the intranet is fostering communication, teamwork, and a stronger company culture.
- Operational Efficiency: A well-designed intranet should streamline workflows, reduce redundant processes, and make it easier for employees to access information. By tracking metrics like time saved on tasks, support ticket resolution times, or reduced email usage, you can measure the impact the intranet has on improving operational efficiency.
- Content Management & Collaboration: Effective content management and collaboration are key functions of any intranet. Tracking metrics such as ease of content discovery help measure how well the platform supports knowledge sharing.
The ROI Perspective
Measuring an intranet’s ROI goes beyond just crunching numbers. It’s about demonstrating the value it brings to your organization, whether you’re investing in a new intranet or optimizing an existing one. Here’s how tracking ROI can make a real difference:
- Demonstrate Value Beyond Cost: ROI isn’t just about financial returns. It also highlights intangible benefits like increased employee satisfaction and enhanced collaboration. Whether you’re rolling out a new intranet or refining an existing one, measuring ROI helps you reveal the full spectrum of advantages it provides.
- Stay in Tune with Changing Organizational Needs: A modern intranet that is built on SharePoint is scalable and can support business growth. By tracking its ROI, you can ensure it remains aligned with your evolving needs. For example, while you may initially use an intranet for document management, you could later identify a need for automated workflows within your organization. A SharePoint intranet can easily accommodate these changes, ensuring it continues to deliver value as your business evolves.
- Make Smart, Data-Driven Decisions: Use ROI data to guide your strategy and prioritize enhancements. For instance, if you’ve recently piloted an employee onboarding workflow and find it particularly useful in one department, ROI data can reveal this success. You might notice, for example, that this department experiences faster onboarding times with a new intranet. You can use this data to expand the workflow to other departments.
Hard vs. Soft ROI
Hard ROI of an intranet refers to the tangible, measurable financial benefits that are easy to quantify or directly link to the intranet’s performance. Here are some examples of hard ROI:
- Software Licensing: Companies using Microsoft 365 can leverage an intranet built on SharePoint to consolidate business needs like document management system or an employee recognition program. This integration reduces the need for separate software and additional licenses.
- Time Efficiency: Intranets save employees time by providing a central hub for information access, eliminating the need to search multiple systems or ask colleagues for help.
- Automated Workflows: Companies can automate business processes such as HR onboarding or expense approvals, which reduces the time spent on manual tasks.
Soft ROI refers to the intangible, indirect benefits that come from using the intranet. These include improvements in employee engagement, collaboration, and knowledge sharing, which may not have an immediate or directly measurable financial impact but contribute to overall business success. Here are some examples of soft ROI:
- Employee Morale and Retention: According to a study, there is a strong correlation between company culture and turnover. Companies with strong culture have a turnover rate of just 13.9%, compared to 48.4% for those with weak cultures. Another survey by Achievers shows that 82% of employees wish to receive more recognition. An intranet can be used to recognize employees and build a sense of community, aid in employee retention, saving on onboarding and replacements.
- Improved Collaboration: Intranets centralize knowledge and make it easier for employees to collaborate, share insights, and solve problems faster. This enhances team efficiency, even if the financial benefits are less direct.
- Workplace Flexibility: Intranets help remote workers get to know of company news, by offering a centralized hub for communication and resources, improving employee flexibility and work-life balance.
- Better Compliance and Document Security: An intranet ensures that documents are securely stored, tracked, and handled according to standards, minimizing the risk of non-compliance and security breaches.
Steps to Measure Intranet ROI
1. Set Clear Goals
To effectively measure intranet ROI, begin by setting clear, specific, measurable, achievable, relevant, and time-bound (SMART) goals. For example, if your goal is to enhance productivity and process effectiveness by automating employee onboarding, you could set a target of reducing onboarding time by 20% within three months. Track progress by monitoring key metrics such as the average time taken for onboarding tasks before and after setting the workflow, employee feedback on the onboarding process, and the number of completed onboarding tasks within the targeted timeframe.
2. Monitor User Adoption and Feedback
Tracking user adoption and collecting feedback is essential for understanding your intranet’s actual impact. Regularly collect feedback through surveys, focus groups to understand user experiences, challenges, and satisfaction levels. PeopleOne, our modern intranet-in-a-box, is designed to enhance user engagement with its intuitive design. For administrators, it offers a streamlined interface, making it easy to create, manage, and moderate content and foster engagement.
3. Conduct Cost-Benefit Analysis
To determine the ROI of your intranet, conduct a thorough cost-benefit analysis. Identify all expenditures associated with the intranet, including initial setup, maintenance, and training costs. Compare the identified costs with the calculated benefits to determine the ROI.
4. Refine and Optimize
Based on your ROI analysis, identify areas where the intranet can be improved to maximize its benefits. Make necessary adjustments to enhance effectiveness and continue to track its ROI. Continuously refining and optimizing the intranet ensures that it delivers tangible and intangible benefits.
Maximize ROI with PeopleOne
PeopleOne—our comprehensive intranet-in-a-box is now on Microsoft Teams. It is designed for high user adoption and engagement by bringing in the features of an intranet in the familiar Microsoft Teams interface. With PeopleOne’s inbuilt analytics, you can measure intranet usage and engagement. Built on SharePoint, PeopleOne is customizable, and we can tailor workflows to fit your business strategy. Plus, it includes native mobile apps, allowing users to access important resources anytime, anywhere. Get in touch to discover how PeopleOne can be a valuable ROI.
