How to measure the ROI on workplace technology

For years, leaders in IT, HR and real estate have struggled to measure the return on investment of workplace technology. While the value of employee experience has long been championed, it has often remained intangible and as a result, it quickly becomes a challenge when budgets are tight, and expectations are high.

Now, workplace experience platform Modo Labs has unveiled what it calls the industry’s first research-backed ROI calculator for workplace apps. Built in partnership with Global Workplace Analytics (GWA), the tool enables organisations to quantify how employee experience platforms can drive productivity, engagement and retention.

The launch comes at a time when the pressure to justify technology spend is mounting. Gartner has noted that application leaders should prioritise vendors that offer flexibility and a clear vision for long-term value, particularly as economic uncertainty and shifting employee demands reshape the workplace.

The cost of digital friction

One of the key drivers behind the new tool is the rising cost of what analysts call ‘digital friction’ which is the wasted time, duplicate processes and fragmented systems that slow employees down.

• According to Gartner, more than two-thirds of employees experience high-friction work environments.
• Workers facing ‘change inertia’ are three times less likely to report high intent to stay with their employer.
• Research by Leesman shows that thriving workplaces, which score above 70 on its Lmi index, enable over 90% of employees to feel their environment supports getting work done.

Even marginal improvements in everyday tasks can yield exponential returns. Modo cites the example of a financial services company that achieved a 14.3x ROI after reducing employee task time by just four minutes per day through its workplace app.

A framework for value

Unlike traditional ROI models, the Modo calculator takes a holistic view of the employee journey – whether at home, in third spaces or in the office. It applies a multi-point analysis across common workplace challenges such as seat-finding, meeting room reservations and wayfinding, benchmarking results against industry data.

‘Enterprises have long struggled to connect employee experience with financial outcomes,’ said Sean Kae, CEO of Modo Labs. ‘Our ROI calculator closes that gap by giving customers a clear line of sight from workplace app investments to measurable business value.’

Kate Lister, President of Global Workplace Analytics, added: ‘Having studied hundreds of workplace strategies, I know how difficult it is for leaders to quantify impact. By putting hard numbers around friction and productivity, this tool gives organisations evidence-based insights to design and scale practices that truly deliver results.’

Implications for workplace leaders

Employee experience is no longer just a soft metric. As organisations grapple with hybrid work, shifting expectations and a volatile market, being able to demonstrate tangible ROI on workplace apps could prove decisive.

The Modo Workplace App ROI Calculator is available now, giving enterprises a data-driven way to evaluate how digital workplace platforms can unlock measurable value across productivity, engagement and retention.