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Return on Investment for Strategic Alignment Assessment

Is your small or medium business leaving money on the table? If you're not measuring employee engagement, the answer might be yes. In today's competitive Australian market, where every dollar counts, savvy SME owners are discovering a powerful link between employee engagement and their bottom line.

Employee Satisfaction Doesn't Matter
Understanding the Australian SME Landscape

 

​Before diving into engagement strategies, understanding the unique challenges Australian SMEs face is crucial. With over 2.4 million active small and medium businesses contributing to the national economy, competition for talent has never been fiercer. In metropolitan areas like Sydney, Melbourne, and Brisbane, where business costs are soaring, maximising employee productivity isn't just good practice – it's essential for survival.

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The Real Value of Employee Engagement: Beyond Job Satisfaction

 

Let's immediately clear up a common misconception: employee satisfaction isn't the same as engagement. While satisfied employees might be happy with their pay and benefits, engaged employees bring something far more valuable to your business – genuine enthusiasm and commitment to your company's success.

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The Numbers Don't Lie

 

Research shows that businesses with highly engaged teams see:

  • 21% higher profitability

  • 20% increased productivity

  • 41% lower absenteeism

  • 87% lower staff turnover

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For Australian SMEs, these numbers translate into real savings and growth opportunities. But what does this mean in practical terms?


Breaking Down the Engagement Impact

 

Consider a typical SME with 50 employees and an average salary of $70,000:

  • Reduced turnover alone could save $175,000-$350,000 annually

  • Productivity gains of 20% effectively add 10 full-time employees worth of output

  • Lower absenteeism cuts lost productivity costs by up to $50,000 per year

Tugulawa Early Education Logo
Tugulawa Early Eduction

This Bulimba-based childcare provider discovered that focusing on employee engagement did more than just reduce turnover – it created a ripple effect of positive outcomes. Better staff retention led to improved care quality, which in turn boosted parent satisfaction and enrolments.

 

After implementing the STAR Workplace Program as part of their ongoing business plan, they reported:

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  • 0 staff turnover

  • Reduced external expenditure in EAP services by 47%

  • Business activity increase by 12% year on year

Humpty Doo Barramundi

This family-owned operation near Darwin proves that engagement matters in every industry. By aligning their 100+ staff with the company's strategic objectives, they've seen measurable improvements in productivity and retention – crucial factors in the agricultural sector's tight margins.

 

Their results have supported:

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  • Business increasing by 400%

  • Improved diversity in the workforce (16% to 30% females)

  • Reduced employee turnover by 73%

Humpty Doo Barramundi Logo
Bloomfield Group Logo
The Bloomfield Group

With approximately 500 employees in mining and engineering, Bloomfield's investment in engagement surveys led to better safety compliance and increased productivity – showing how engagement directly impacts operational efficiency and risk management.

 

Their results included:

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  • Improved strategic alignment of their team by 29%

  • Increase profitability while commodity prices reduced by 50%

  • Business valuations increased by 600%

The Dollar Value of Engagement: Breaking Down the ROI
 

When you invest in engagement surveys, you're not just gathering feedback – you're investing in your company's financial future. Here's what the research tells us about engaged workforces:


Reduced Turnover Costs


With replacement costs running between 50-100% of an employee's annual salary, reducing turnover through engagement initiatives offers immediate savings. For a business of 100 employees, even a small reduction in turnover can save tens of thousands annually. Consider these factors:

  • Recruitment costs

  • Training and onboarding expenses

  • Lost productivity during transition periods

  • Knowledge transfer challenges

  • Impact on team morale and culture

 

Productivity Gains

 

Engaged employees don't just work harder – they work smarter. The 20% productivity boost seen in companies with high engagement levels directly impacts your bottom line through:

  • Increased output

  • Better quality work

  • More innovative solutions to business challenges

  • Improved customer service

  • Enhanced team collaboration

  • Reduced error rates

  • Better resource utilisation

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Customer Satisfaction and Revenue

 

Companies with highly engaged teams report 10% higher customer satisfaction ratings. This can significantly impact your business growth and reputation in today's review-driven marketplace. The benefits include:

  • Increased customer loyalty

  • Higher referral rates

  • Better online reviews

  • Stronger brand reputation

  • Increased repeat business

  • Higher average transaction values

The Strategic Action Model: Understanding Business Alignment

Based on comprehensive research across 5,000 Australian businesses, The Strategic Action Model reveals four distinct organisational states based on the relationship between strategy and activity levels:

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1. Growth-Ready Organisation (High Strategy + High Activity)

When a business has a high level of strategy linked to what everybody does every day, it is poised for growth. These organisations demonstrate:

  • Clear alignment between strategy and daily operations

  • Universal understanding of company goals

  • Direct connection between activities and strategic objectives

  • Strong engagement scores

  • Sustainable growth patterns

The Strategic Action Model

2. Chaotic Organisations (Low Strategy + High Activity)

These businesses have high levels of activity not linked to strategy, running around like a gerbil on a wheel, busy being busy. Characteristics include:

  • High energy but low direction

  • Incomplete tasks despite constant activity

  • Frustrated employees

  • Inefficient resource use

  • Poor strategic outcomes

 

3. Start-Up Mode (High Strategy + Low Activity)

  • Typical of new businesses, this state shows:

  • Strong strategic vision

  • Limited execution capacity

  • Clear plans waiting for implementation

  • Opportunity for strategic alignment

  • Need for increased activity levels

 

4. Market Exit Risk (Low Strategy + Low Activity)
Often seen in second or third-generation businesses, these organisations show:

  • Minimal strategic direction

  • Low productivity

  • High risk of market failure

  • Urgent need for revitalisation

  • Poor engagement metrics

TRUSTED BY AUSTRALASIA'S LEADING BUSINESSES

Common Engagement Survey Mistakes to Avoid
 

1. Poor Timing and Frequency
Many businesses fail by:

  • Conducting surveys too infrequently

  • Choosing inconvenient times (like peak seasons)

  • Not allowing enough time for meaningful responses

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2. Lack of Follow-Through
The biggest mistake is collecting data without action:

  • Not sharing results with employees

  • Failing to create action plans

  • Ignoring difficult feedback

  • Not tracking improvements over time

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3. Survey Design Flaws
Watch out for:

  • Questions that aren't benchmarked

  • Surveys that aren't anonymous, as the data you receive won't be honest. 

  • Surveys that are too long

  • Survey that don't provide rating responses

  • Bias in question phrasing

Making Engagement Surveys Work for Your Business

1. Focus on Strategic Alignment
Don't just measure satisfaction – assess how well your team understands and supports your business goals. Research shows that 78% of Australasian businesses lack full strategic alignment, costing thousands per employee annually.


2. Choose the Right Metrics
Focus on measurements that directly link to business outcomes. STAR Workplace measure strategic alignment and Psychosocial Risk alongside traditional engagement metrics. Key areas to measure include:

  • Knowing how the business is performing

  • Leadership effectiveness

  • Opportunities for advancement

  • Work-life balance

  • Role clarity

  • Job Demands

 

3. Take Action on Results
Involve your team in developing solutions based on survey findings. This creates buy-in and ensures your initiatives address real needs. Consider:

  • Creating action committees

  • Report on progress at agreed intervals (quarterly)

  • Transparent communication about changes

  • Celebrating quick wins

  • Long-term strategy development

 

4. Monitor and Adjust
You need to give your business time to adjust and reflect. Surveying your team every month is a waste of their time and yours, as you haven't given the business enough time to make improvements. High-performing businesses complete an annual assessment and then a pulse survey specific to the changes 6 months after the initial assessment. Implement:

  • Half-yearly pulse checks

  • Annual comprehensive surveys

  • Ongoing feedback channels

Book an information meeting

Book an information meeting with one of our key consultants that have helped over 900 businesses measure and manage their strategic alignment. This is a free information session to better understand your business.

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