Return on Investment Calculator
REWARD Tool #1It takes an investment to implement an RTW program. For example, a RTW Coordinator will be paid to help injured employees return to work by adapting jobs and finding meaningful work opportunities. Is the investment it takes to implement a program worthwhile? This form is designed to help employers conduct a cost/benefit analysis.
Instructions:
In this example, we show the financial impact for an average Tennessee employer by using an average Tennessee employee (we named her “Jane”).
Jane earns $20 per hour, was injured at work and missed 960 hours of work, about 24 weeks. When Jane returned to work with an RTW program, she only missed 456 hours of work. The impact on her employer is dramatic—even after factoring in the cost of the RTW Program.
To develop your own estimates: enter your details below, let the calculator do its magic, and compare.
This is a simple model for illustrative purposes. Each business is different and should consider appropriate information and context for itself. Costs to replace injured workers may also be taken into account including lost productivity while recruiting and training in addition to overtime and other costs. For questions, comments or to discuss options for your company, contact Brian.Holmes@tn.gov, 615-253-1206.
Calculation Explanations
Value of work produced per hour ($)
Need help estimating hourly productivity? Use industry benchmarks.
To calculate your hourly productivity: Divide revenue by labor hours.
Why 960 hours?
Tennessee data shows the average temporary disability period is about 24 weeks. At 40 hours per week, that equals 960 hours of missed work. Actual time may vary depending on the injury and job duties.
Why 504?
Research suggests return-to-work programs can reduce time away from work by about 12.6 weeks. At 40 hours per week, that equals approximately 504 hours of recovered work time. You can adjust this value based on your organization’s experience.
Why $88.82 per hour?
Employees returning to work may not be fully productive due to temporary restrictions. This example assumes the employee is working at about 83.7% of normal productivity. Applying that reduction to $106.12 per hour results in $88.82 per hour during return-to-work.
How do I estimate program cost?
Costs may include job modifications, equipment, administrative support, or return-to-work coordination. If you are unsure, you can use the default value and adjust based on your organization’s experience.