Renewing a traditional HR interview cycle, with a plan, performance, and appraisal interview, to The New Assessment and a continuous dialogue offers enormous savings potential. Studies conducted by Gallup, Deloitte, Linkedin and others show potential savings in time and money through higher productivity, lower turnover and lower absenteeism.
The survey results
+280% in employee engagement
Research conducted by Gallup has shown that continuous dialogue between the manager and employee can increase employee engagement by up to 280%(1).
-44% time required for HR
Implementing a continuous dialogue, supported by the right software results in a 44% time savings for the HR department, according to our own calculations!(2) Time you can use as a department for strategic HR projects.
-27% time required for managers
Good conversations that align with business operations not only result in higher employee engagement but also reduce the time required by about 27% for managers to conduct the conversations.
+26% in employee productivity
In a productivity study, Gallup found that an increase in employee engagement and continuous dialogue resulted in an increase of up to 26% in employee productivity. With enormous time-and therefore money-savings.
-41% voluntary attrition
A study conducted by LinkedIn showed a 41%(3) reduction in voluntary departures when discussing employee development and career opportunities on an ongoing basis. Millennials and Gen-Z thus stay with these organizations longer. Resulting in a reduction in attrition costs.
-43% in sick leave
Gallup studied that higher employee engagement results in a 43%(4) reduction in sick leave. The “uninvolved” employees are sick or less productive an average of 2.15 days per month due to related symptoms. This while the employees involved are sick for only 1.25 days per month.
-62% burnouts
In another study, Gallup examined the impact of continuous dialogue on burnout rates. Continuous dialogue was found to reduce burnout by up to 62%(5).
The savings potential
Assuming an organization with 120 employees and an average attrition rate of 18%, the above research results show a total savings potential of: 3800 hours per year and a total annual savings of €135,000.
The ROI
Assuming an investment of approximately 5 euros per employee per month for a software platform that supports the creation of a continuous dialogue, the annual investment is approx. €7.200. Considering an adoption phase of the new methodology, the maximum ROI in the first 3 years will be between 1200% and 1600%.
Calculate it yourself
Curious about the savings potential for your organization? Download the free ROI calculator, enter your organization’s details and calculate how much time and money you can save your organization.
Resources
- https://www.gallup.com/workplace/215390/gallup-performance-management-ongoing-conversations
- Gallup 2017, State of the American Workplace
- https://business.linkedin.com/talent-solutions/blog/internal-mobility/2020/employees-stay-41-percent-longer-at-companies-that-do-this
- https://news.gallup.com/poll/187865/engaged-employees-less-likely-health-problems.aspx
- Gallup 2018, Millennials are Burning Out.
