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App Costs vs ROI: how it compares

10 March 2024

Turning Minutes into Money: How a Workplace App Can Boost Your Bottom Line

In today’s fast-paced business world, even small gains in efficiency can translate to significant cost savings. Mobile apps, designed to streamline workflows and empower employees, can be a game-changer for businesses of all sizes. Let’s explore how a well-designed internal employee focused app can pay for itself, and even turn a profit, by freeing up valuable & costly employee time.

Scenario 1: Shaving Minutes, Saving Pounds

Imagine a company invests £25,000 in a mobile app specifically designed to improve team efficiency. The app saves each employee a precious 30 minutes per workday. Here’s how that translates to financial benefit:

  • The Setup: We’ll assume an 8-person team and an average yearly salary of £40,000 per employee (excluding benefits).
  • Time is Money: With 30 minutes saved daily per employee, that’s 30/60 * 8 = 4 hours saved per team, per day.
  • Yearly Efficiency Boost: Over a year (assuming 250 workdays), that’s 4 hours/day * 250 days = 1000 hours saved by the team.
  • Cost Savings: Since an hour saved is an hour not paid, the company saves 1000 hours * £40/hour (average salary) = £40,000 per year.

Investment vs. Return: In this scenario, the initial £25,000 investment in the app is recovered within the first year (within 8 months), with an additional £40,000 saved annually moving forward. That’s a significant return on investment (ROI) for a relatively modest initial cost.

Scenario 2: Supercharge Savings with Increased Efficiency

The efficiency gains don’t stop at 30 minutes. Let’s consider a scenario where a mobile app saves employees a more substantial 45 minutes each day. Here’s the impact:

  • Team Size Increase: We’ll expand the team size to 15 employees for a more significant impact.
  • Daily Time Saved: With 45 minutes saved per employee, that’s 45/60 * 15 = 11.25 hours saved by the team, per day.
  • Yearly Efficiency Boost: Over a year, that translates to a staggering 11.25 hours/day * 250 days = 2812.5 hours saved.
  • Cost Savings: In salary savings alone, the company saves a remarkable 2812.5 hours * £40/hour = £112,500 annually.

ROI on Steroids: Once again, the initial investment of £25,000 pales in comparison to the savings achieved. The company recoups the cost within the first three months and enjoys a staggering annual saving of over £112,000.

The Value Beyond Numbers

These scenarios paint a clear picture of the financial benefits of implementing a well-designed workplace app. But the advantages extend beyond just cost savings. Improved efficiency leads to:

  • Increased productivity: Employees can accomplish more in less time.
  • Enhanced employee morale: Freed from tedious tasks, employees feel empowered and valued.
  • Improved customer service: Faster workflows lead to quicker response times and happier clients.

Tasks That Apps Can Help Employees With

Apps can help employees be more efficient in a number of ways including:

  • Automate repetitive tasks: Free up valuable time by automating data entry, report generation, and other routine processes.
  • Simplify complex calculations: Eliminate errors and save time with built-in formulas and financial functions.
  • Leverage AI-powered insights: Get smarter recommendations and next-step suggestions to expedite decision-making.
  • Improve communication and collaboration: Streamline information sharing and project management through centralized platforms.
  • Facilitate remote work: Enable secure access to files, data, and communication tools from anywhere.

Investing in Your Future

By investing in a mobile app designed to streamline workflows and empower employees, businesses can unlock significant financial benefits and create a more productive and positive work environment. With an average app cost of £25,000, why not consider contacting us today to discuss how a custom app can transform your business.

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