Human Resources has always been at the center of business, but as the workforce (and the world for that matter) experiences constant change and transformation, HR is integral to many aspects of business strategy, especially in performance management. That’s why HR technology continues to change and evolve, never more so than in the recent years. And like any other investment, companies want to know what the return is on those new processes and technologies.
The iRevü ROI Calculator
Here at iRevü, we want our customers to know the value in our product and perhaps the best way to do this is by outlining the potential savings from having our performance management tools. That’s why we built an easy-to-use ROI Calculator for our prospective clients. Founder of iRevü, John Fanguy explains,
“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.”
For example, taking a microscopic 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. In fact, in one study, as much as 30% directly resulted in decreased performance. And did you know 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 company metrics and uses industry-specific metrics to calculate savings in the three main areas:
- Reduction in Cost from Voluntary Turnovers
- Reduction in Cost of Annual Reviews
- Reduction in Cost from Unengaged Employees
With over 10 industries to compare, the offers a world of insight and (bonus!) takes as little as 30 seconds to fill out.
Where Did We Get All That Data?
We wanted 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 and all of it’s components. Though the calculator has pre-determined values for each industry, clients can change and tweak inputs to their liking.
What the 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 15% lower turnover rates and their employees are 4 times more likely to score at the top of Bersin by Deloitte’s Total Performance Index!
ROI 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.
The Key Takeaway
Performance management needs reinvention which is why iRevü is pioneering modern performance management solutions. By creating our own calculator, we can save prospective clients from all the research and work it takes to determine ROIand bring them one step closer to seeing the value in what we have to offer. We want them to know that our business is to keep their best interests in mind.
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!
