Key Takeaway
Yep, we’re giving you the Takeaway, at the beginning of this post.
Performance management needs reinvention which is why iRevü is pioneering modern solutions. By creating our own performance management ROI calculator, we can save prospective clients the research time and work it takes to determine ROI, bringing them one step closer to seeing the value in what we have to offer.
Performance management needs reinvention which is why iRevü is pioneering modern solutions. By creating our own performance management ROI calculator, we can save prospective clients the research time and work it takes to determine ROI, bringing them one step closer to seeing the value in what we have to offer.
Human Resources is at the center of business – and always has been.
There, I said it.
The workforce experiences constant change because PEOPLE experience constant change. HR plays an integral part in business strategy today, especially in performance management. That’s why the numerous technologies supporting the HR function continue to evolve. HR Tech requires an investment.
Like any other investment, fully understanding what the return is on those new processes and technologies is imperative.
The ROI Calculator
At iRevü, we want our customers to know the true value of our product and the best way to do this is by outlining the potential savings from using our performance management tools. That’s why we built an easy-to-use ROI Calculator for our prospective clients.
Michael Heller, Co-Founder & CEO of iRevü, worked in HR – he gets it.
“When I led people teams, I knew I’d have better executive buy-in when I provided data to stakeholders. Today’s HR leader makes decisions on several factors, not just what will something cost, but what can I expect from the investment.”
He’s right. No amount of cajoling or whining will have the same impact as addressing the bottom-line of an organization. How will it impact profits and revenue? How will it impact my people? And will it make a difference in the company’s success?
Co-Founder of iRevü, John Fanguy continues,
“Having spent twenty years plus each helping companies drive more efficiency with better processes and technology, Michael and I realized companies really have no idea how much money they are losing due to employee performance-related problems.”
Let’s take a closer look at performance reviews, which is how most companies communicate and assess employee performance, experts have found them to have a negative impact on employee performance. A Negative impact. Really? Yes, really.
In fact, studies have shown that as much as 30% directly resulted in decreased performance! In fact, 81% of surveyed employees would forego high-quality workplace perks just to join a company that values open communication.
81% of employees would forego high-quality perks to join a company with open communication! @Engagiant_iRevu Click To Tweet
“The ROI Calculator helps companies quickly see, based on proven industry metrics, that improving employee performance definitely improves profits and reduces costs.”
The ROI Calculator takes basic organizational metrics and uses industry-specific metrics to calculate savings in these three main areas:
- Reduction in Cost from Voluntary Turnovers
- Reduction in Cost of Annual Reviews
- Reduction in Cost from Unengaged Employees
With 10+ industries to compare, this offers a world of insight and (bonus!) takes as little as 30 seconds to fill out.
CEO Michael Heller,
“It’s so important to make an informed decision on where to spend your capital AND influence. Our performance management ROI calculator can provide real data to take back to your executive team on what a real time performance management platform can do for your organization.”
In the end, we can sit back and ask
about the cost of using
a performance feedback tool –
but maybe the question should shift to,
what is the cost of NOT using one?
SIDE NOTE: Where Did We Get All That Data?
Wanting to ensure that our prospective clients had the most accurate and on-point information possible. The industry data compiled for the ROI Calculator came from several sources including Bersin, Business Insider, Forbes, Gallup and SHRM. Below is a screenshot of the ROI Calculator; though the calculator has pre-determined values for each industry, you can change and tweak inputs to your liking.
What the Performance Management ROI Calculator is For and Why
We want our prospective clients to feel completely confident about using our real time management software because we know the savings and benefits it will bring to their business and their overall performance goals. Fanguy explains,
“Companies will quickly realize the very conservative estimates from their industry and business function make investing in their employees with a real time performance system an imperative. Specifically, the legal cost avoidance, improved employee efficiency, reduced training costs, reduced attrition typically drive a payback of less than 3 months.”
What’s more is that, among a wealth of other benefits, companies that implement regular feedback with their employees experience lower turnover rates and their employees are 4 times more likely to score at the top of Bersin by Deloitte’s Total Performance Index!
“Return on Investment” guides our business decisions. It gives organizations a tool that essentially sees into the future. Decision makers can rest easy when they choose to take a risk and invest in a new product, strategy or whatever it may be because they can quantify the effect those things will have on their current processes by calculating the ROI. We want to make that realization easier by having all the metrics in place and ready for calculation.
Now, We ask for YOUR FEEDBACK
We’re always looking for ways to make communicating the benefits of our real time performance management platform as quick and easy as possible. If you have any comments or suggestions about our ROI Calculator, we’d love to hear them!
