In today’s competitive market, every business decision must have a direct positive impact on a company’s bottom line. At BetterWorks, we believe that investing in a performance management system that relies on objectives and key results is an important business decision that can make companies more money in the long-run. Not only are goals and regular feedback essential to employee satisfaction, they help companies create stronger teams that are prepared to succeed.
The Direct Impact of Engagement
Employees who receive regular, actionable feedback and are unlimited in their opportunities to succeed at work are inevitably more engaged. On the other hand, employees who are subject to yearly reviews and goals that are attainable rather than aspirational tend to be less motivated at work. Additionally, employees who can visualize how their personal goals relate to team and company goals are more motivated in the workplace and can see the direct impact of their hard work.
As a result, companies that have engaged teams are in a better position to increase their profits. In fact, research from Hay Group revealed companies generate twice the amount of revenue when they have engaged employees who are on the same page. Yet, despite this fact, Dale Carnegie Training shared data from Accor Services that showed even though 90 percent of organizations say employee engagement impacts business success, a stunning 75 percent have no engagement plan or strategy. With this in mind, goal and performance management systems are a direct investment in employee engagement.
The Cost of Turnover
Turnover is another issue businesses should consider when looking for ways to improve their bottom lines. At BetterWorks, we think OKRs and an engaging performance management system are key to retaining top talent and reducing costly turnover. According to OfficeVibe, companies that implement regular employee feedback see 14.9 percent lower turnover rates, and 43 percent of highly engaged employees receive feedback at least once a week. And with interactive goal setting software that focuses on connected, supported, adaptable, progress based and aspirational goals, companies are one giant step closer to holding on to their best employees.
A Route to Collaboration
There is no denying that collaboration and innovation are inextricably linked. That’s why companies hire diverse teams of people with varying talents in the first place. However, traditional performance management systems and untransparent goals that are set only once a year create silos and communication breakdowns across teams. At BetterWorks, we think silos and poor communication are the enemy of innovation.
On the other hand, quality goals that are visible to everyone keep teams on the same page so they can collaborate and innovate in ways that make achieving company goals possible. When company goals are realized, clients are happier and businesses make more money. Collaborative companies also breed happier employees. According to a study conducted by Google, among respondents who strongly agreed their company supported knowledge-sharing and collaboration, 88 percent also strongly agree that employee morale and job satisfaction were high.
In today’s business world, quality goal structures and regular feedback are key ingredients to financial success.