Whilst performance management has many logical benefits for employees’ development and the success of a company, these advantages stay often very theoretical. Both managers and staff see it often mainly as something that needs to be done - to have it done - than as something that will actually add value.
What’s the impact on your business?
To overcome this perception and to reveal the tangible benefits of implementing a performance management tool we created this calculator. It is possible to quantify the value added to your individual business. Just by adding the number of employees in your company and an estimation of your turnovers per year it will show you how much you could save with good performance management.
How did we come up with the calculation?
Our assumptions are based on studies indicating that depending on the employee's experience and responsibility total costs of turnover vary from 4 months' salary for simple or entry jobs to 48 monthly salaries for executives. According to industry surveys, employee fluctuation can be decreased by about 15,2% while at the same time employees' productivity can be increased by 5,4% with the help of performance management systems.
How do you find out the value added for you?
An example of how simple it is to use this tool to calculate your potential savings:
1. Fill out number of employees, yearly amount of turnovers and average yearly salary of your employees.
2. For a more customized calculation click on the “alternative detailed calculation”.
3. Here you have the possibility to map your employee structure in more detail based on the number of employees of each salary level that leave every year and the annual average salary of each of those groups.
Calculate your savings now