Blog

How much time and money can online performance management systems save you?

Elissa Dennis
11th October 2021
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Many customers come to Appraisd because they want to move away from a paper-based approach. Organisations like Activereach and Microbyte have reached a size where they found a manual system based on printed forms was simply not fit for purpose. Apart from being difficult to track and inconsistent, a paper-based approach is also very time consuming. But how much time does an online performance management system like Appraisd save?

How long does a review take?

From discussions we had with our customers, paper-based processes can take as long as five hours per person per review. This is made up of the following activity:

  • The preparation – gathering information/feedback, reviewing past reviews to get ready for a productive conversation.
  • The review conversation – an in-depth review will take on average between 60 and 90 minutes.
  • The follow up activity – this covers all the administration that is need after a review, such as printing, scanning and emailing forms and tracking and collating feedback.

Depending on your process and the complexity of your approach, each of these stages can easily take 90 minutes or more. The follow up stage tends to be the most arduous and time-consuming. These laborious tasks can be very tedious and mean employees are diverted away from their usual duties.

How can online systems speed up the process?

Online systems, like Appraisd, can reduce this dramatically and the costs savings can be witnessed from the very first review. The admin required with everything held in one place is minimal, therefore managers especially have more time to devote to their review conversations, without dreading what is required to prepare for them and follow them up.

More informed, constructive conversations

Apart from the direct costs savings that can be clearly attributed to Appraisd, there are other hidden savings to be had. If the preparation and administration for reviews is extensive, it can be extremely draining for both managers and employees. We’ve had many clients who’ve told us about how much everyone used to dread their old appraisals. All the focus was on the administration difficulties, completely overshadowing the positives that reviews should bring.

By removing administrative pain, everyone has more energy to devote to what they should be talking about – their objectives, their development and their career progression. The conversations become much more productive, and employees genuinely begin to look forward to them and enjoy spending time thinking about where they can improve.

If all the information is held in one place, it is easy to get a much clearly picture of how each employee is performing. Not only that, but managers and HR can begin to see patterns emerging across the workforce of which areas are meeting their objectives and where attention may be needed to improve performance. Having this data at your fingertips allows more informed and effective conversations to take place.

Indication of savings

Through using Appraisd, we estimate the review process is about 25% faster. So, with a team of eight people, doing two formal reviews twice per year, they will save about 16 hours. If this is replicated across a business of 500 employees, that could be around 1,000 hours saved a year. Just think about what could be achieved in that time.

These are savings that can be easily tracked and immediately benefit the bottom line. They are by no means the only benefits of an online performance management system like Appraisd. Take a look at our free ROI calculator to see the total costs that could be made.