The difficult part about change management is that it’s not something that happens overnight. Especially when it comes to revamping a decades old process, organizations only get as much as they put into that first year of promoting, measuring and adjusting.
Measuring the impact of a new performance management system isn’t as straightforward as measuring the impact of a new accounting system or customer service tool, but it isn’t impossible to assess either. Remember time is money, so even if saving time on performance reviews or increased time spent on coaching is your objective, there are ways to attach a dollar value to that.
The first step is to identify the underlying reasons for low employee engagement, productivity and turnover. If you haven’t already, here are 15 questions to ask in your next engagement survey to learn where you could make the most impact. Based on your results, below are examples of five different KPIs you can measure to determine success.
1. Reviews participation rate
Completing performance reviews can be a drag. They often take lots of time to complete and there’s never a time when absolutely everyone is in the office. One of the major advantages of switching to a people enablement platform is that, unlike Google Docs or traditional paper and pen processes, it allows more flexibility and a completely user-focused experience. For example:
- Re-open reviews for absent or sick employees
- Users can easily complete them on their own schedule, via web or mobile app (during the commute home, on a coffee break, etc.)
- Automatically save drafts, so you can pick up where you left off
With this enhanced user experience, we encourage our clients to set a goal of reaching 80% completion rate during their first review. The more people participating in the process, the closer your organization will get to feeling the full benefits of an enhanced performance management experience.
2. HR process efficiency
Another benefit of moving from a manual paper and pen process, or even Google docs based performance review process, is that it cuts down the time it takes for HR to administer, process and return the results. Meanwhile, it also reduces the time it takes for managers and employees to complete them. This can mean cutting the process down from 2 months to as little as 2 weeks. If your long-term goal is to increase productivity, saving time on performance reviews can have a major impact
Shortening the HR process
Feedback is most effective when it’s delivered in a timely manner. If too much time passes between the moment it’s given and then received it can greatly reduce the potential impact it can have.
To calculate this, simply subtract the time in days it took to complete performance reviews using your old process by the time it takes with your new tool.