A CEO’s Perspective on the ROI of Employee Engagement

The Leadership Imperative

Employee engagement is not just a buzzword; it’s a critical driver of organizational success. For leaders like Sachin Shivaram, CEO of Wisconsin Aluminum Foundry Company, engaging employees goes beyond improving morale—it directly impacts productivity, retention, and company culture. This whitepaper explores employee engagement through the lens of a CEO, drawing on real-world insights and results achieved with tools like Secchi’s employee relationship management platform.

The Employee Engagement Challenge

Employee engagement is complex, especially in industries like manufacturing and logistics, where frontline workers play pivotal roles. Traditional methods of engagement often fall short:

• Infrequent Feedback: Employees may only receive feedback quarterly or annually, leaving them disconnected from their progress and contributions.
• Generic Recognition: Programs like “Employee of the Month” fail to provide personalized or meaningful acknowledgment.
• Leadership Overload: Supervisors often lack time and tools to build relationships while managing day-to-day responsibilities.
• Turnover Costs: Disengagement can lead to high turnover rates, costing thousands per employee.

Sachin summed it up: “How do we let people know we value them? Pay isn’t enough. People need frequent, specific feedback to feel valued and dedicated.”

A CEO’s Perspective: Lessons from Frontline Teams

1. Driving Productivity Through Engagement

Sachin’s team achieved record-breaking productivity at their Indiana foundry, increasing molds per hour to unprecedented levels. While multiple factors contributed, Secchi played a key role:

• Supervisors used Secchi’s platform to deliver frequent, meaningful recognition, fostering stronger teamwork.
• Employees gained clarity on expectations, creating alignment and reducing bottlenecks.
• Data-driven accountability ensured that high performers were celebrated and underperformance addressed.

Key Takeaway: Frequent, meaningful connections between leaders and employees drive measurable results, from higher productivity to lower scrap rates.

2. Recognition as a Powerful Motivator

Sachin’s initial skepticism about employee recognition’s impact dissolved after hearing stories like this:

• Employees proudly shared recognition messages with their families, validating the personal and professional value of specific, tailored feedback.
• Supervisors who initially doubted the value of frequent recognition saw productivity gains from the most engaged teams.

Key Takeaway: Recognition is not just a “feel-good” initiative; it builds morale, strengthens relationships, and enhances performance.

3. Simplifying Leadership Tasks

Secchi’s platform removed barriers that previously hampered engagement efforts:

• Ease of Use: Employees didn’t need to download apps or remember passwords. Supervisors could deliver recognition or corrective feedback in seconds.
• Attendance and Accountability: Employees could check attendance points without interrupting workflows, saving supervisors 3-5 queries per shift.
• Sustained Usage: Unlike other initiatives that fizzled, Secchi’s simplicity ensured ongoing adoption and momentum.

Key Takeaway: Technology that simplifies engagement tasks makes it easier for leaders to do the right thing, consistently and at scale.

Measuring ROI: Engagement’s Impact on the Bottom Line

1. Cost of Turnover

Wisconsin Aluminum Foundry calculated that each turnover costs $8,000. Even small reductions in turnover deliver substantial savings. Sachin noted, “If Secchi helps save just two employees a year, it pays for itself.”

2. Productivity Gains

Increased molds per hour at the Indiana facility showcased how better engagement directly drives operational efficiency. Higher productivity not only improves profitability but also builds pride among teams.

3. Efficiency Savings

By automating routine tasks, Secchi freed up an HR analyst’s time, allowing the company to repurpose this role for deeper engagement rather than administrative work.

4. Intangible Benefits

Sachin described Secchi as akin to a conference room or lunchroom: “Once you have it, you don’t want to live without it.” The platform fosters a richer, more connected workplace culture that’s hard to quantify but immensely valuable.

Key Takeaway: Engagement initiatives like Secchi’s platform deliver ROI by reducing turnover, boosting productivity, and enhancing efficiency, all at the cost of a “sandwich per employee per month.”

Leadership Insights: A CEO’s Advice

1. Prioritize People

“We’re in the people business,” Sachin said. “The joy of this work comes from building relationships, and Secchi makes that easier and more effective.”

2. Balance Recognition and Accountability

Secchi’s dual focus on positive and constructive feedback ensures employees know where they stand and what’s expected. This balance creates trust and clarity.

3. Start Small, Scale Strategically

Wisconsin Aluminum Foundry piloted Secchi at one facility before expanding it to others. This phased approach ensured the platform’s value was proven before wider adoption.

4. Embrace Simplicity

Complex systems hinder adoption. Secchi’s simplicity—from text-based recognition to intuitive dashboards—ensured sustained engagement.

Employee Engagement is a Competitive Advantage

Employee engagement is no longer optional for companies seeking to thrive in competitive industries. As Sachin’s experience shows, prioritizing meaningful connections, providing actionable feedback, and leveraging the right tools can transform workplace culture and drive results.

For CEOs and leaders, the message is clear: Engaged employees are productive, loyal, and essential to long-term success. Tools like Secchi make it possible to build stronger teams, foster richer relationships, and achieve measurable ROI—one connection at a time.

About Secchi

Secchi is an employee relationship management platform designed to enhance employee engagement and drive culture change. By simplifying feedback, recognition, and accountability, Secchi empowers leaders to build meaningful connections with their teams. For more information, explore our cost savings calculator or schedule a demo to learn more about how Secchi can boost your bottom line.