How ILUX performance management improves employee retention

ILUX is a specialist IT outsourcing company. It quickly pivoted to become a remote-first organisation during the pandemic and as since adopted a hybrid approach. As a result of these new working practices, CFO Clare Elliott decided to update their approach to performance management.

ILUX IT outsourcing specialists
All managers
All managers
complete talent management questions for their teams quarterly
More than 100
More than 100
responses recorded in the last quarterly review
At least 3 objectives
At least 3 objectives
are encouraged to be set by emploees

ILUX is a specialist IT outsourcing company. Founded in 2008, it quickly pivoted to become a remote-first organisation following the outbreak of Covid-19. Employees have embraced the approach wholeheartedly and it has proved successful, helping the business to grow and thrive.

Clare Elliott joined ILUX in June 2017 as Chief Financial Officer. As well as being responsible for managing the finances of the organisation, Clare also oversees HR. It was her decision to look for an online performance management system. After a thorough review process, she selected Appraisd as the most appropriate option.

The challenge: Adapting performance management to a remote workplace

Before the pandemic, ILUX was like many other companies: employees came to the office every day, drawn from the surrounding area. When the first lockdown occurred in March 2020, this changed rapidly. As an IT company, they were well-placed to adjust with a tech-savvy workforce.

The move to remote working prompted a process review to make sure they were still fit for purpose. Performance management was one area Clare identified for improvement. It was clear a new system was needed to:

  • Save time – their existing spreadsheet-based process wasted huge amounts of time for her and line managers. Clare spent hours chasing for reviews to be completed and to collate information.
  • Create a fair and consistent approach – the length, frequency and quality of reviews for employees varied across the company, meaning no one person had the same experience.
  • Shift the onus from managers to employees – rather than being left to managers to drive, Clare wanted employees to take ownership of their performance, putting them in control of their development and careers.
  • Better support managers – while employees swiftly embraced remote working, managers have found the adjustment more difficult. Clare wanted to support them with appropriate tools to help them to adapt.

While these were all major factors, perhaps the most pressing issue was improving employee retention. This was specifically at entry level among employees with a lower skill level. This high churn rate was making it difficult for the company to grow and was costing significant amounts in wasted time and resources.

Clare discovered that a key reason for these employees leaving was that they felt overlooked and under-valued. She felt revamping their approach to performance management was vital to address this issue.

The solution: A continuous performance management approach

Clare chose Appraisd as it had the flexibility she wanted and could be set up quickly. As their employees are familiar with many IT systems, she wasn’t worried about them learning a new system, but she was concerned about them having yet another platform to log on to. The single sign on and Teams integration available with Appraisd have both been big plus points, helping it to seamlessly become part of employees’ daily routine.

"Managers just received one hour’s training and we launched straight after that. So far, the feedback has been all positive, I’ve heard nothing negative", says Clare.

To address employee retention, Clare wanted to create a framework that was the same for all employees from their first day in the business. Appraisd has helped this become a reality. It is introduced to employees as part of their induction, so performance management is a continuous process, not something negative that happens just when there’s a problem. Everyone now goes through a three-phase probation, receives quarterly reviews and has check-ins to monitor progress in between reviews.

Also making sure everyone has objectives to focus on, means there is no ambiguity over what is expected of them. They can see how their role brings value to the organisation and any skills gaps or training requests can be picked up and actioned quickly. This also provides a framework for managers, helping them to feel more comfortable looking after remote employees.

My time is now focused on managing exceptions, investigating why reviews haven’t taken place. I can spot potential issues and act before they become serious problems. I’m now confident that every employee knows their importance to us and can ask for support and training when they need it. <div  class="author">Clare Elliott, CFO at ILUX</div>

The benefits: Recognising employees

As Clare has a dual role in ILUX, she can see first-hand how employee performance has a direct impact on the financial success of the organisation. While always concerned with keeping costs to a minimum, she believes Appraisd has been worth investing in.

I already know that Appraisd is good value for money as I can see everything is being done. I have the overview of employee performance that I just didn’t have before.<div  class="author">Clare Elliott, CFO at ILUX</div>

Growing the company has been a key objective over the last few years. Having Appraisd in place provides a solid foundation for this growth to continue. By ensuring employees can take control of their development, it means their knowledge and skills will remain within ILUX. They can now see how their careers can evolve within the organisation.

"Appraisd shows our employees that we are taking their careers seriously, investing in the tools that will help them fulfil their potential", says Clare.

Talent development