Advertisement

The ROI of Continuous Performance Feedback

The ROI of Continuous Performance Feedback
From Recruiter - February 3, 2017

No matter your job title, all deliverables boil down to return on investment: How can this project be most beneficial and profitable for the company?

When real-time, continuous feedback enters the conversation, its almost always in the context of millennial talent or how modern workforces need regular check-ins. We cant argue those points. In fact, we support them.

That support, however, comes from deep research into how much better organizations thatprovide continuous feedback perform against their competitors.

Reduced Voluntary Turnover

It hasbeen estimated that turnover costs a company6-9 months worth of an employees salary. That means replacing a manager making $40,000 a year could rack up $20,000 or $30,000 in recruiting and training costs.

And that only accounts for one manager. Consider losing multiple people in a short span of time, or losing a higher-level executive with a much larger salary. Dont forget to tack on the non-monetary costs like time to proficiency and productivity.

When continuous feedback is implemented, communication between employees and leadership opens up. It might seem a little touchy-feely to say, but human capital management is still focused on humans. Youve probably heard the employees quit managers, not jobs bit. It may be overused, but its true! For employees to feel connected to their employers, they need to know they can trust their managers or supervisors.

A manager can lower turnover ratesby using real-time feedback as a primer onsharing and attaininggoals, workplace challenges, deliverable struggles, and so on.

Additionally, 26 percent of employees withhold information about workplace problems or new ideas because they believe sharing it will not effect change. When performance feedback is delivered in a regular andprofessional way, employees will feel more open about sharing their stanceson company policies and practices.

Reduced Annual Review Costs

Many organizations seem to believe that one hour of performance feedback is enough to cover an employees entire year on the job. What that performance management model lacks, however, areopportunities to address performance issues before they lead to termination and to build a record of performance throughout the year.

According to a SHRM article, 77 percent of HR executives believe performance reviews dont accurately represent employee performance. The very professionals leading the appraisal process are not happy with the way performance is evaluated! As for employees, onlya little more than halffeel the processis actually effective in terms of their development. The problem with traditional annual performance reviews is twofold: many opportunities for skill and goal development are missed in the time between reviews, and the actual process of tracking performance metrics is inefficient.



Advertisement

Continue reading at Recruiter »