Defining the Business Impact of Performance Management …And the True Cost of Status Quo

Defining the Business Impact of Performance Management …and the True Cost of Status Quo

Dedicated to serving small and mid-sized businesses, PiiQ by Cornerstone is part of the product portfolio of Cornerstone OnDemand, the global leader in talent management with over 17 years of continuous growth. As the talent management partner of choice to some of the world’s most successful companies, Cornerstone is dedicated to providing organizations of all sizes with the ability to optimize the way they manage their most important asset – their people.

In today’s marketplace, companies leveraging a leading performance management solution are outpacing the competition in every category, from productivity to employee engagement and retention, to overall profitability. Accordingly, sticking with the “status quo” of manual reviews significantly limits the potential of any business.

FIND OUT HOW PIIQ IMPACTS SUCCESS:

PRODUCTIVITY Are You Identifying Costly, Unproductive Employees?

Your team is lean and interdependent. Don’t fall victim to unproductive employees weighing down the output of your team. Identify employees who aren’t achieving their goals and get the team back on track quickly.

Unproductive, disengaged employees cost U.S. companies nearly $600 billion per year.1 Are Your Employees’ Goals Aligned or Moving in Opposite Directions

If your company isn’t rowing in the same direction, you can’t make progress. You need to ensure all goals are aligned towards your company objectives.

By establishing alignment throughout the organization, each employee gains a sense of ownership and accountability, resulting in an energized workforce with a clear and consistent vision.2

Are HR & Managers Wasting Hours on Manual Performance Tasks That Could Otherwise Be The average manager spends Spent on More Productive Tasks? more than 200 hours a year on activities related to performance To reduce inefficiencies, equip HR and your reviews, but a staggering 90% of managers with modern performance management tools that eliminate burdensome, HR leaders feel the process does manual performance processes. not yield accurate information.3

EMPLOYEE ENGAGEMENT Is Your Performance Management Process Engaging or Detracting Your Employees?

Disengaged employees are not only unhappy and unproductive at work, but also liable to spread negativity to coworkers, while engaged employees work harder and smarter.

Numerous studies show that employee engagement is one of the most critical drivers of financial performance:

COMPANIES WITH HIGH ENGAGEMENT EXPERIENCE4

% 16 higher profitability % 18 increase in productivity % 37 lower absenteeism HIGHER REVENUES % 65 reduction in turnover EMPLOYEE RETENTION Are You Leveraging Performance Reviews to Retain Your Top Performers? High performers only comprise 5% While paper reviews are static, archaic documents that don’t allow for benchmarking, performance review tools of your workforce but produce 26% not only facilitate individual performance benchmarking, but succession planning as well. When employees of your output. Replacing them is don’t see a connection between performance and their incredibly expensive, to the tune of career progression, they leave- and now you’re not only 5 one resource down, but you’ve entered into the costly up to 3.5 times their salary. process of finding a backfill.

Organizations that implement effective talent management processes are 109% more capable of retaining high performers, and are 144% better at planning for future talent needs.6

EMPLOYEE DEVELOPMENT Are You Transforming Performance Conversations Into Learning Opportunities To Drive Employee Development?

Providing development opportunities to your employees doesn’t have to be costly- in fact, companies across all industries that invest in learning and development experience increases in their profitability.

ORGANIZATIONS WITH STRONG LEARNING CULTURE ARE:8

% 17 more profitable than their peers

% 52 more productive % Employees under the age of 25 56 more likely to be the first to market their products & services rate professional development % 92 more likely to develop novel as their number one driver of products & processes engagement, and this is the % number two priority for workers 30-50 higher engagement & retention rates up to age 35.7 COMPLIANCE

Corporate compliance is crucial to protecting your business and mitigating the risk of extremely costly penalties that could also result in dissolution. Depending on your industry and region, you may be responsible for meeting strict compliance standards and require an automated system to manage and track organization-wide compliance.

ROI of PiiQ

PiiQ enables you to foster productive, aligned, engaged, and loyal employees that directly contribute to improving your company’s bottom-line. What organizations often overlook is the real savings from hidden costs of employee turnover.

What does this mean for your business? When factoring in account employee turnover costs, average salary, and the cost to hire for companies like yours, PiiQ could deliver over 250% in ROI.

*This figure is based on voluntary employee turnover rates for a company with 100 employees and an average employee salary of $50K.

1. https://blogs.technet.microsoft.com/mediumbusiness/2013/03/18/are-you-paying-for-unproductive-employees/ 2. https://trainingmag.com/content/establishing-alignment-employee-performance-management 3. http://www.personneltoday.com/hr/end-annual-appraisal-whats-next-performance-management/ 4. https://www.paycor.com/resource-center/the-link-between-performance-management-and-employee-engagement 5. https://www.eremedia.com/ere/top-performers-produce-4x-more-output-and-higher-quality-referrals/ 6. http://blog.bersin.com/the-amazing-business-impact-of-superior-talent-management/ 7. https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html 8. https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-16/employee-engagement-strategies.html#endnote-45

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