Turn costly performance processes into the investment they can be.
Is managing performance important? Given the decrepit state of most employee review processes, it’s a fair question. Some have thrown in the towel. If that describes you or you’re not as sure as you once were, I suggest you ask any successful coach. Ask yourself. Would you bet on a team to win if they told you they have no game plan? There’s no doubt that managing performance is worthwhile.
But, to do it right takes time, planning and investment. And who has the time? If a system requires to much work to manage, it is by definition not a managed system.
So, how much does your performance management system cost? I’m not asking how much you payed for it – though that itself can at times be exorbitant. I’m not even considering the “soft costs”. Engaged employees are good. Disengaged employees aren’t. A disengaging process can be astronomically expensive.
Forget the cost of turnover.
At least those disengaged employees do you a favor and quit. It’s far worse when they stay! The impact on quality and customer service is enough to tell the tale.
I’m talking about hard costs, the money you spend on broken performance management processes. To get a guesstimate, consider this:
- How much are your managers, employees and HR staff compensated per hour?
- How much time do they spend on performance management processes?
Think about it. A lot of time gets spent creating documents, gathering feedback, preparing reports, scheduling meetings, holding meetings, following up with the appropriate staff, shuffling paper, emailing spreadsheets, chasing managers down to get their reviews done…
Do the math.
You might be astounded. These processes can be very expensive. Consider this conservative example of a three-hundred person company set to conduct a single annual review.
Over $13K for these 300 employees is a little more than $43 a head. But, it’s far more costly than that. You also lose the time it takes to conduct the performance management process. In this example, all those hours add up to more than 15 days spent on a single annual review! The opportunity cost alone is incredible.
It goes without saying. You should invest in an upgrade to your performance management process. ReviewCloud easily cuts your review time by more than 50%. It pays for itself, improves employee engagement and relieves the headaches associated with clunky systems. Check it out.