Employee turnover is a massive problem for organisations. Whether it’s because of a lack of clear objectives, challenges in their role, or coaching and mentoring support, when an employee leaves it hurts an organisation’s bottom line. It can also impact staff morale and productivity, particularly if there are a lot of people leaving over a short period.

Technology can help reduce turnover by facilitating effective performance feedback. For example, aligning people with organisational goals can help them see the road ahead, drive their career development and motivate them to stay in their roles.

It is estimated that turnover could be reduced by at least 1% if organisations used technology to provide a more engaging performance process – one that’s flexible, conversational, and available on-the-go every day. Assuming the cost to replace an employee is a conservative 60% that employee’s salary, this represents considerable savings.

Effective performance feedback allows an organisation to monitor and improve each employee’s performance and productivity. With the help of technology like performance apps, managers can help employees align their goals with organisational objectives by demonstrating how their daily tasks contribute to the bigger picture. With clear objectives and expectations captured in an online system, employees have greater visibility and accountability of the role they play and will often work harder. A conservative 1% increase in productivity from performance management technology can reduce total headcount which can save an organisation millions.

Automating performance management processes can save time and money. This ROI calculator demonstrates how eliminating manual processes from performance management can save money and positively impact an organisation’s bottom line.

Performance technology reduces manual ‘busy’ work, automates key dates and tedious processes like email follow-ups and notifications, and consolidates reporting to one central location. To measure time saved as an ROI measurement, we multiply management and HR hours saved with the average employee cost per hour to get the total savings.