Business benefits, not be be confused with employee benefits, are things that are good for a business. This includes tangible benefits such as cost reduction and intangible benefits such as a creative corporate culture. The following are common types of business benefit.
Customer Attrition (Reduction)
Diversification of Revenue
Issue / Problem Resolution
Overhead Cost (Reduction)
Return on Investment
Revenue Per Employee
Share of Wallet
Talent / Competencies
Time to Market
Unit Cost Reduction
Hard BenefitsA hard benefit is a measurable result that is positive for a business. For example, a theme park that improves its website to increase visitor satisfaction with the site from 12% to 78%.
Soft BenefitA soft benefit is a qualitative result that is perceived but not directly measured in any reliable and precise way. For example, a diversity team in human resources that states that their program increases the creativity of the organization. This may be a realistic argument that resonates, even if it isn't particularly measurable.
Correlation vs CausationCorrelation is when two variables happen to move in the same direction. This often occurs because a third variable is causing both variables to move. It is also common for correlation to be random and meaningless. Correlation is often confused with causation. This is a common error in the calculation of hard benefits. For example, a diversity problem that claims that it increases revenue by pointing to numbers that show that highly profitable firms usually have diversity programs. Such firms may require diversity programs for compliance and reputational reasons such that this argument may confuse correlation with causation.
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