Research has shown that Performance and Talent Management solutions have higher financial performance than the industry norm. Giving credence to this assertion, Saugatuck Technology Inc sponsored by Success Factors Global Research in a white paper identified performance and talent management solutions as key drivers to revenue growth.

Research

The research shows that firms that deploy On-demand Performance and Talent Management solutions have higher financial performance than the industry norm. More importantly, the research suggests that the improved financial performance grows overtime after the Human Capital Management Solutions from Peopleguru is deployed.

Companies that improve employee retention will see a direct impact on financial performance resulting from a reduction in the following costs: recruitment, training, lost productivity, new hire on-boarding costs. Estimates of these costs can run from 50 percent up to 150 percent of an employee's annual salary.

Ability to Plan

Reducing turnover, however, is not the only goal. A company should want to retain the very best employees and prepare them to take on larger roles within the organization and conversely find ways to off-board those performing below par. The ability to plan ahead for turnover is just plain good risk management that, over time, can result in not only higher, but more predictable financial performance.

Strategic Objectives

Improved alignment means that the company can better execute its strategic objectives and more easily change them if needed. By driving completion of the performance review process across and up and down the company, a Performance and Talent Management solution improves execution of corporate strategy. Allowing, executives, managers and employees know and understand their goals and objectives and how they contribute to company strategy.

Top and Bottom Line Performance Gains

This improvement in employee engagement: an emotional connection to one's job, boss, or company that results in the employee applying discretionary effort to his or her work - is at the heart of the increased productivity that drives both top and bottom line performance gains. Engagement is created by the alignment of personal goals with business strategy and then reinforced by pay-for-performance policies.