Performance Management ROI Calculator
Instantly estimate your performance management ROI using our free, easy-to-use performance management calculator.
Key Metrics for Performance Management ROI
Increased Employee Productivity
Get more done in less time. A good performance management system helps your employees stay focused on their goals, leading to higher output and better results.
Enhanced Employee Engagement
Employees who are committed to their work tend to perform better. When your employees feel valued, they’re more likely stay with the company longer, leading to better team performance.
Cost Savings from Automation
Automating performance management processes reduces the time you spend on manual tasks. This lowers administrative costs and allows you to focus on more strategic activities.
Best Practices for Maximizing ROI
Regular Performance Reviews
Conduct regular performance reviews to provide your employees with feedback on their progress and areas for improvement.
Continuous Feedback Loops
Encourage continuous, regular, and open conversations with employees – you’ll be much better equipped to identify and solve any performance issues that pop up.
Employee Development Programs
Invest in employee development programs to help your team grow. This ongoing development keeps everyone motivated and prevents future skill gaps.
Explore Your Potential ROI with PerformYard
Our ROI calculator can help you quickly estimate the financial impact of implementing PerformYard in your organization. Once you've input your data and discovered how improved performance management can lead to significant savings and a more efficient workforce, schedule a demo to get started.
FAQ
Frequently Asked Questions
How do I use the performance management ROI calculator?
Input your organization’s data, such as employee count, average salary, and current performance management costs. Then the calculator will provide an estimated ROI based on your inputs.
What metrics does the ROI calculator consider?
Our calculator considers key metrics like employee productivity, engagement, goal performance, and cost savings from automation to estimate your return on investment.
Why is tracking performance management ROI important?
Tracking performance management ROI is important because it shows how well your strategies are working and helps you find areas to improve. It ensures you’re investing resources wisely so you can boost employee productivity and drive overall business growth.
Is performance management software secure?
Yes, performance management software is secure. It often uses robust encryption, access controls, and compliance with industry standards to protect sensitive employee data.
How often should I calculate my performance management ROI?
We recommend calculating your performance management ROI at least once a year. This allows time for your strategies to show their impact and helps you identify areas where adjustments may be needed to improve overall performance and results.
How does PerformYard calculate the results?
Formulas are created using industry research and PerformYard data. We expect a 5% reduction in turnover rate and a 20% reduction in HR and manager working hours spent on performance management when using PerformYard. We also expect that HR / Managers spend about 210 hours per year on performance reviews, and that replacing an employee costs 100% of an employee’s salary.
Savings due to reduced turnover = (Average Annual Salary) x (number of employees x turnover rate) x .05.
Savings due to increased manager productivity = (Number of Managers x Average Manager Salary / 2,080 working hours per year x 210) x 0.2
Savings due to increased HR productivity = (Number of HR people x Average HR Salary) / 2,080) x 210 x (.1 x Number of Managers) x 0.2
Can PerformYard integrate with other HR tools and systems?
Yes, PerformYard integrates with your existing HR tools and systems, including HRIS for up-to-date employee data, SSO for one-click login, and Slack or Teams for recognition. Check out our full list of integrations here.
