by Mike McCurdy
Executive Director, Georgia Employers’ Association
Return on Investment (ROI) is a measure of gain or loss generated on an investment in relation to the cost. It’s a great calculation that analyzes value, whether the investment is a personal financial decision or a capital purchase by a business. The formula for ROI is easy:
ROI = (Gains – Cost)/Cost
Here’s an easy example: If your business invests in a piece of equipment that costs $100/year to operate and the revenue that the machine produces is $250/year, your ROI on the machine is 1.5, or 150%. The machine paid for itself and contributed an additional $150 in value to your company.
It’s easy to calculate ROI for a capital investment, but how about for membership in an organization like Georgia Employers’ Association? If you look closely at the cost and returns from membership, you’ll see that the investment value looks pretty good.
First, the cost is very reasonable. The membership investment varies according to company size, but let’s look at a company with 300 employees. Their cost of investment is $1500 or $5/employee. Does the company get their money’s worth?
Let’s consider a few of the services GEA provides and some fairly realistic scenarios:
- Training – GEA sponsors workshops, webinars, and educational events every month across the state. Many of the seminars include briefings by experts in the legal, HR, and healthcare fields. Benefits to attendees can directly impact their work and the profitability of their companies. What if an HR manager gains information that prevents an FLMA claim or helps to retain a key employee? The cost of handling a DOL complaint can run into the thousands. It can cost ⅓ of an employees annual salary to hire and train a replacement.
- HR Solutions – GEA receives several calls each week from member companies that need immediate help to resolve HR issues. In many cases, our experienced staff can help with the problem, but we can also conference in legal professionals from Constangy, Brooks, Smith, and Prophete, LLP. There’s no cost for this service, unless longer-term involvement is required. What’s the value of timely legal advice if litigation or liability is avoided?
- Information – GEA provides a steady stream of valuable information via our website and our email communications. Members receive our weekly newsletter with articles on important developments in business and HR, briefs on legal and regulatory developments, and upcoming events. They can also take advantage of a free subscription to Answers Now, an online database of HR resources, news, and both federal and Georgia laws and regulations. The pace of business today is lightning fast. Can you place a value on timely information?
Members receive even more value from their annual investment in GEA. For instance, discounted rates to all GEA-sponsored events, frequently 20% – 25% off regular pricing. The events provide a great value as do the professional contacts that are created among those who attend. Many GEA events are pre-certified for HRCI recertification credits, an important consideration for HR Professionals. Preferential rates are also available for many other services – consulting, employee engagement surveys, handbook audits, and annual wage and benefit study results, to name a few.
Plug in some numbers and do the math. You’ll see that the ROI from a membership investment in Georgia Employers’ Association is very high. If your organization is not already a GEA member, we hope you’ll take a look at our full list of benefits and make a decision to become a member today!