Employee experience is a total of all perceptions that an employee holds. Explore how organizations can create a seamless experience for its workforce
Employee experience is a buzzword for many fast growing organizations. Increasingly, you must also be looking at your employees more as the end assets than simply as means to an end. Here, employee experience can be your greatest tool to attract, retain and develop the best talent in the marketplace. According to a report by Deloitte, 80% of HR and business leaders believe that employee experience was “important” or “very important” to them. However, only 22% of these leaders said their organization was “excellent” at establishing a differentiated employee experience. The gap in these two figures clearly creates a case for you to step up your efforts with a comprehensive employee experience strategy and best practices to achieve the same.
Before jumping into the detailed approach on how to improve employee experience, its importance and impact on different business verticals, you must understand what employee experience is. According to Denise Lee Yohn, “EX (employee experience) is the sum of everything an employee experiences throughout his or her connection to the organization.” Looking closely, this suggests that employee experience entails every encounter for an employee from the time they first interact with an organization as a potential candidate to the day they formally leave the organization. Thus, it is not a one off observation or feeling, but encapsulates everything an employee experiences at work.
Why is employee experience so important or why invest in employee experience has been a question that would be in your mind for a long time. For many of your business leaders, investing in employee experience may be a good thing to have, and not something pressing for your organization’s sustainability and scalability. However, studies and surveys have time and again illustrated the business impact to answer why is employee experience so important.
You can directly link a positive employee experience to satisfaction, happiness and engagement at work. While these may not be directly quantifiable, their impact surely is. According to a study, happy employees are up to 20% more productive at work. On the flip side, actively disengaged employees cost the U.S. between $450 billion to $550 billion per year. Thus, if you create a conducive experience you will be able to engage your employees as well as augment their performance and productivity.
You can also answer the question on investing in employee experience by throwing light on its impact on talent attraction and retention. Invariably, if you offer a positive experience from the first step of the employee lifecycle, you are able to attract and retain the best talent. At the same time, poor culture and experience is what pushes top performers to look for a change. 47% of people actively looking for a new job pinpoint company culture as the main reason for wanting to leave. Therefore, employee experience is a great resource for employer branding and getting the best talent.
Finally, employee experience focusing on satisfaction, engagement, wellbeing, belongingness, etc. has direct business repercussions. Research shows that companies with highly engaged workforces outperform their peers by 147% in earnings per share. Thus, employee experience can have a positive impact on your organization’s bottom line.
On learning the business impact of employee experience, you must be excited about identifying the right employee experience strategy and learn the best practices on how to improve employee experience. However, it is important to take a pause to actually measure their experience score to identify the gaps and challenges. Here are the top employee experience survey questions that can help you answer the question, how to measure employee experience:
You can start measuring employee experience by calculating the employee net promoter score. Like customers, you can understand whether your employees are willing to recommend your organization to others. Employee experience survey questions may include, on a scale of 1-10, how likely are you to recommend our organization to your family or friends to work?
Depending on the cumulative score, you can have a decent understanding of the overall employee experience. Anything below 6 reflects poorly on the experience and above 8/9 is a good score.
While employees might display a willingness to recommend others to join, if they are actually walking the talk is one of the employee experience metrics that you must track. Here, tracking referrals is important. The number of quality referrals which an employee brings in which actually convert to successful hires illustrate employee satisfaction and a positive experience. It is vital to note that simply focusing on the number of referrals is not enough as they might be just a sign of incentives attached to referrals. You should majorly focus on successful hires.
Finally, not all employees might be vocal or open about their experience. But, that doesn’t signal a positive experience. Therefore, you must constantly track and monitor employee rating and feedback sites like Glassdoor. Here employees anonymously share their experiences at different organizations. While you may not get the name, however, a broad sentiment becomes clear by analyzing such surveys.
Employee experience management at the very basic level ensures managing employee expectations and providing the right resources, support, tools, etc. to create a positive experience. Here, Maslow’s hierarchy of needs can be a foundation for employee experience management and garner a better experience. If you look closely, there is a clear match between the needs of individuals that Maslow states and what employees seek at work. The 5 major needs namely physiological, safety, belongingness, esteem and self- actualization all can be realized through organizational offerings to augment employee experience.
You must make an extra effort to focus on employee wellbeing and ensure that the basic necessities, like food, rent, etc. are taken care of, even in the face of salary cuts. You need to constantly monitor employee pulse in terms of their physiological needs and offer reassurance accordingly.
Job security has been one of the top stressors, time and again, for almost all employees and a direct threat to the second rung of Maslow’s hierarchy of needs. There is a lot of anxiety about losing one’s job, which is coming in the way of creating a positive employee experience at work. You can cross this bridge by facilitating transparency to the largest extent possible. It is important to keep the communication channels open and constantly educate your employees about the state of affairs, instead of hasty firing to prevent ambiguity and confusion among the employees which creates a feeling of insecurity.
Next, you must focus on fostering belongingness by helping employees gain a sense of purpose. Here helping employees realize the impact they are creating at work and giving them a purpose to strive for is important. Additionally, facilitating communication and collaboration to build strong bonds between colleagues can bridge the belongingness needs to create a worthy employee experience.
To address the esteem needs, you can step up the appreciation and recognition game. This involves celebrating small milestones, acknowledging even the smallest of contributions and constantly appreciating employee performance. This employee experience management practice will help you boost motivation and, thus, create a desirable experience for all team members.
To contribute to the final rung in Maslow’s hierarchy and empower employees to unleash their full potential, you should ensure that the work being given to employees contributes to their growth and professional development. Mentoring, training, coaching and development in a personalized avatar can further actualization.
Managing and fostering a positive experience requires creating a comprehensive and robust employee experience strategy which addresses each step of the employee lifecycle.
The first step towards creating an effective employee experience strategy starts in the pre employment phase. Here, you should consider having a seamless application and hiring process. Firstly, the application form must be easy to comprehend and relevant to the role. A cumbersome form which is difficult to access and complete will negatively impact experience. Secondly, the whole interview and hiring process must involve constant communication and touchpoints. Make the process entirely employee centric and evolve it constantly based on feedback.
Once the employee is in the system, onboarding is the next touchpoint. A pleasant onboarding experience can do wonders and the opposite can make blunders. According to a study by Gallup, 88% of organizations don’t onboard well. Additionally, companies lose 25% of all new employees within a year. The right onboarding experience involves proper induction, expectation setting and giving the new hore time and space to absorb all the new information. Upon successful onboarding, you must focus on constantly engaging employees via different initiatives as well as investing in their development. Such development programs are likely to augment employee competencies, creating a win-win for all stakeholders.
Finally, the last stage of the employee lifecycle is when employees move to a new organization or retire. While they might be leaving the organization, it is very important to have them depart with a positive experience. In any scenario, you should focus on having i an exit survey to encourage them to share their experience and areas of improvement. At the same time, helping them depart on a positive note, with no delays, left dues, etc. are signs of a positive employee experience.
With an understanding of a robust strategy in hand, you are now ready to understand how to improve employee experience. Well, improving employee experience is closely related to augmenting the experience across every step of the strategy mentioned above. Here are some best practices that you can leverage to improve employee experience:
You should start with improving your internal communication. This has multiple layers to it. Firstly, communication must be clear to ensure that expectations are clear and employees understand every word. At the same time, you must encourage all your managers to practice active listening to ensure two-way communication to improve employee experience. According to research, 85% of employees are most motivated when internal communications are effective. A robust communication strategy is likely to augment collaboration, decrease conflict and, thus, increase belongingness and augment experience.
Any answer on how to improve employee experience will definitely focus on appreciation and recognition. Research shows that recognition is the most important motivator for 37% of employees. Your leaders and managers must appreciate and recognize employee contribution to organizational success. At the same time, encouraging peer-to-peer recognition can be effective. When you acknowledge a job well done, employees tend to believe that they are making a difference which is being recognized and, thus, adds to a positive experience.
You may overlook the impact of technology in improving employee experience. Right from recruitment to departure, technology has the potential to augment every employee experience touch point. Within technology, leveraging gamification to facilitate performance and experience is most important. According to sources, 90% of employees are more productive with gamification, with 72% of them reporting it inspiring them to work harder and 95% enjoying it. At the same time, using technology to promote seamless collaboration and communication, automation, etc. can help you improve employee experience.
You also need to focus your efforts towards building a thriving and inclusive work culture which aligns with employee expectations. Here, offering flexibility and autonomy to employees to experiment and innovation, ensuring all voices are heard and a culture of respect, fairness and transparency are vital. According to a survey, companies with a thriving corporate culture achieve over 4x higher revenue growth. Therefore, to improve employee experience, you must transform the very fabric of the organizational culture and make it employee centric.
A critical part of employee experience is the holistic development of the workforce. Here, understanding the unique developmental aspirations for each employee and align its learning and development efforts will help you make a difference. A balanced combination of training, upskilling, mentoring, coaching, etc. can go a long way into creating a positive employee experience. However, according to SHRM, only 29% of employees are “very satisfied” with their available career advancement opportunities. Thus, you must focus more on the professional development opportunities available for your employees.
You might see feedback is a way of performance reviews, given to employees by their managers and leaders. However, it is time that you invest in employee experience surveys to gauge feedback from the workforce and understand their opinions, sentiments and perspectives. Some of the top employee experience survey questions include:
Employee experience and customer experience are intrinsically linked. On the face of it, you might dismiss this thought and suggest that employee experience and customer experience are mutually exclusive. However, research shows that companies with excellent customer experience have 1.5x more engaged employees than others. Let us quickly explore how employee experience impacts customer experience:
While automation and digital transformation is on the rise, customers always desire human connection. This connection they get from your employees. Your employees are touch points for your organization and the only human interface customers interact with.
An organization not only goes by the quality of its offerings, but also by the attributes of its people. Therefore, it is your employees that have a role to play in defining your brand to your existing and potential customers. By capitalizing on individual employees, you can pull together customer interest and boost experience.
You might have six figure marketing budgets, but employee reviews like customer reviews have the potential to make or break a brand. Employees define the public image for an organization. Customers generally prefer to engage with organizations that have a non-controversial public image.
When an employee feels engaged at work, he or she will go the extra mile to onboard more customers and add a few new tips and tricks to your customer acquisition playbook. Positive experience can also act as a motivator to help the employee come up with newer strategies and techniques to keep the customer satisfied.
Trust and credibility builds and breeds on relationships which are based on human connections. Only when your employees are engaged enough to enthusiastically perform their responsibilities will they make an effort to build that relationship of trust and credibility with the customers.
On a macro level, employees are the face of your organization in the market. Customers sense the authenticity of an organization in the way its employees communicate and project it to the outer world. Thus, good customer experience directly links to a robust employee experience.
You cannot improve employee experience in a single day. It requires years of strategizing, implementation, monitoring and refining the strategy based on feedback. The objective is to keep improving the process to augment experience. In such a situation, you can facilitate collaboration with SuperBeings. With a vision to create a conducive work environment, SuperBeings helps fast growing organizations like yours to create a pleasant employee experience. It will support you to gauge employee pulse and opinion, identify roadblocks to a positive experience and provide data backed insights for a seamless employee experience.
Take your employee experience to new heights with our customizable employee engagement module. Book a free demo today!
The right compensation management practices and policies can make or break your employee experience. Of course, there is merit in linking compensation and performance to drive organizational success, it can lead to several questions and implementation problems as well.
Read on to get all your compensation management related questions answered.
Let’s start with the very basic question of why fair compensation is important and the merits it brings along. It is no surprise that if you are paid more and are compensated according to your efforts, you are likely to give in your 100% and stay with an organization longer. However, there are other factors that support fair compensation:
Thus, fair compensation as a part of compensation linked performance management has the potential to facilitate better employee outcomes such as engagement, experience and performance.
To make compensation fair and inclusive in all aspects, it needs to have a clear foundation. Most organizations have relied on performance reviews as a way of reflecting on performance as a means of compensation decisions. However, there are several competing views both for and against tying compensation to performance reviews.
Clearly, there are both sides to the story.
The most favorable outcome will be to keep performance as one of the parameters for compensation, but not the sole foundation.
Additionally, as one of the best practices, performance reviews can be conducted on a regular basis, where some are only developmental in nature and others can be tied to compensation management.
As discussed, focusing only on performance reviews for compensation management needs a relook. Working with growing organizations, we have curated a list of the top five performance and compensation management practices you can leverage:
Ensure that your compensation structure aligns with the market trends so your employees don’t feel underpaid and leave.
Provide complete transparency and clarity to your employees on what constitutes high levels of performance and what it will take to earn a raise or appraisal.
Have specific, well defined and measurable criteria for the compensation strategy to ensure that there is complete transparency.
Salary in hand or the pay check your employees receive is accompanied by a range of benefits that are a part of the compensation structure and cost to the company, but are often overlooked by employees. Make sure they are widely communicated.
Ensure that there is a base pay range for every role and profile with variable additions based on candidate competencies.
The idea of fair compensation and linking compensation and performance management, leads to a very interesting concept of distributive justice. On a broad level, distributive justice essentially focuses on ensuring that the compensation received by employees is fair and equitable and is based on objective and rational grounds which are uniform for all. Here are a few ways to ensure distributive justice:
Measure potential and market value of the employee in addition to experience and expertise to ensure distributive justice for high potential employees
Another interesting component of compensation and performance management that you must acquaint yourself with is pay transparency. Essentially pay transparency refers to how openly or freely employees within an organization can discuss their compensation with others.
This is not only limited to the check they take home but other perks and benefits they are entitled to. Invariably, many platforms today also enable individuals to anonymously share their salaries online and get insights from others doing the same. However, there are diverse views on when it comes to pay transparency for an organization.
Those who advocate for pay transparency believe that it can enable large scale impact for the organization across performance management.
However, there is a flip side to pay transparency too with some common pitfalls that need to be addressed proactively.
In the last section of this article, we will focus on how managers play an integral role in compensation and performance management and the best practices to guide managers to have effective compensation conversations with their team members.
Almost 58% organizations do not train managers on pay communications
This startling statistic clearly highlights how despite the apparent importance of compensation management, the focus on ensuring a seamless process is rather limited. However, organizations today can play a leading role in enabling their managers to have better pay communication and conversations by following these tips:
It is quite evident that compensation and performance management are intrinsically interlinked and if leveraged well, compensation has great potential to not only drive performance, but also facilitate engagement, retention and much more.
However, to ensure the same, you need to have a very structured, transparent and fair compensation strategy and policy. Furthermore, you must, don’t forget to invest in training your managers to bridge any gaps and constantly gauge and address employee pulse — to ensure fair compensation for all.
Talent development is critical for growing organizations which see the workforce as their biggest asset. Focus on developing their talent stack not only leads to a pleasant employee experience, it also augments the overall performance and productivity for an organization.
While you may come across many ways to facilitate talent development, leveraging the competency framework can help you move the needle very quickly.
Let's see how.
Before moving directly to how you can implement the competency framework, let’s quickly understand the 5 stages of talent development.
The first stage involves planning for your talent needs based on your organizational priorities and creating the position profile based on the skills, attitudes and other competencies.
Based on the position profile, you need to start attracting talent for the position. You can do so by spreading the word in the right networks, through job portal platforms, etc. The objective is to ensure that you are reaching out to the right network. You can also explore the right candidate for the position internally to considerably save hiring and training costs.
Once you have identified the right person, the next stage of talent development is extending the offer to the person after a thorough background check as well as a competency and expectation match. It also requires creating personalized onboarding plans for the first 30-60-90 days of the candidate’s journey within the organization. Read our guide to employee onboarding to learn more about onboarding do’s and don’ts.
The main focus of talent development starts with providing the right development and learning opportunities to your workforce. This can involve upskilling for both technical and soft skills, leadership building or any development intervention based on the need of the role and position.
Finally, talent development involves undertaking initiatives to retain your talent. While learning opportunities are important, facilitating engagement, wellness, motivation, etc. all contribute to employee retention.
If you are wondering how the competency framework aligns with talent development, you need to start by decoding what the framework actually stands for.
Put simply, a competency framework is a set of behaviors, skills, abilities and attributes that an organization considers imperative for creating a high performance culture.
The competency framework can be implemented at all stages of the talent development or the employee lifecycle within an organization. The idea is to ensure that certain core competencies are kept at the heart of the decision making that in any way impact the workforce.
Competency framework based talent development is very important for employee retention. Talent development practices when undertaken effectively have the potential to encourage team members to stay with the organization for long and at the same time become ambassadors to help attract high quality peers.
Here are the top reasons why competency framework based talent development matters:
Now that we have covered the basics of talent development and competency framework, let’s understand how leveraging the latter to advance the former can create a far reaching impact for organizations.
The first step is to create a competency framework which involves identifying the key competencies which will be instrumental in guiding all decisions around talent development. Depending on the nature of your organization, there can be categories within the competency framework that you seek to focus on. Your competency framework should focus on behaviors, skills and attributes which are critical for performance and overall success. The following steps can help you create a competency framework for talent development:
The responsibility of creating the competency framework is collective. It starts with involving the executive leadership to ensure alignment with the vision, people managers to ensure they are ideal for the culture you are trying to build and functional managers to ensure inclusion of right competencies for each role and position. Furthermore, involving those on the ground can be fruitful as they have the best idea of what competencies are critical and others which are good to have.
Once the competency framework for talent development is ready, the next step is to align it with your recruitment process to ensure precise and effective hiring. There are a few steps along the way:
The onus of implementing the competency framework during selection lies primarily with the HR team and recruiters who assess the candidates with different tests and assessments. Team managers and leaders also play a role in assessing functional competencies and fit.
Irrespective of whether an employee is onboarded before or after you have implemented the competency framework for recruitment, you need to ensure competency based performance management and development opportunities.
From a talent development perspective, the focus of the competency framework should equally be on developing employees for their next or subsequent role based on the specific competencies for the same.
The onus of aligning performance and development with the competency framework lies with team managers as they are best able to determine the performance gaps. Furthermore, employees with their managers can identify competency gaps for better performance and focus on the right learning and development interventions to bridge the same.
Finally, the competency framework must also impact the subsequent rungs of talent development where an employee moves up the ladder from one position to the next. Based on the organizational matrix and competencies for each level, you need to identify key attributes that differentiate one level from another and ensure the same is communicated to your employees.
In a nutshell, it is quite evident that the competency framework can inform and advance every stage of talent development for fast growing organizations. If you implement such a framework across the employee lifecycle, you will significantly reduce your chances of a wrong hire and will be able to nurture a workforce that aligns on the vision, goals and overall organizational culture.
A clear competency based talent development approach can help you achieve high levels of performance which is observable and measurable.
While most people managers are able to create a business case for setting OKRs as well as for the adoption of an OKR software by leveraging industry benchmarks and best practices, there is a need to explicitly decode the return on investment of using an OKR tool as well.
Unless they are able to clearly illustrate how the return achieved using a goal management software is greater than the investment, it becomes difficult to sustain the adoption and get long-term leadership buy-in.
Continue reading to strengthen your business case on the same.
Let’s quickly understand how the OKR framework is integral for an organization, especially high growth companies. Most fast growing organizations have competing priorities they need to focus on with limited resources at hand.
Therefore, simply setting goals by adopting a top-down approach without supporting parameters can lead to confusion and incompetence. OKRs help drive away this ambiguity by linking measurable key results for each objective and facilitating a collaborative approach to achieving goals.
Here are the top three benefits of implementing OKRs in an effective manner:
OKRs enable employees and leadership to have a very clear focus on what needs to be accomplished and what work is out of scope. The idea is to have complete clarity on —
The last part is extremely important as it helps create a sharp focus and set priorities straight.
93% of employees don’t really understand what their organization is trying to accomplish in order to align with their own work.
This illustrates that there is a big absence of clarity and focus amongst employees when it comes to what needs to be accomplished, which stands in the way of creating a high performance culture. Therefore, OKRs can help reduce such uncertainty and ambiguity, making it easy for the workforce to concentrate on what matters.
Taking cue from the first point, the second benefit or purpose of implementing OKRs foris a need for clarity of expectations and overall team and organizational alignment. In case of fast growing organizations, there is an overlapping of roles and responsibilities and a lack of clarity on expectations from each employee. This leads to lower than average outcomes, productivity and revenue growth and data backs the same.
97% of employees and executives believe lack of alignment within a team impacts the outcome of a task or project. Whereas, companies that regularly exceeded revenue goals were 2.3X more likely to report high levels of alignment.
By ensuring organization-wide goal visibility, OKRs help teams to decode what is expected out of each team member and their respective contribution towards achievement of the shared goals. Thus, increasing alignment and collaboration.
Finally, setting and implementing OKRs is often a collaborative process. Employees get involved in and participate during the entire OKR process and feel engaged in the same. This greater involvement and participation leads to deeper levels of engagement and ownership of key results which drive impact.
OKRs also enable employees to also gauge their performance and measure their progress in an effective manner. This motivates them to get more involved in achieving the common weekly, quarterly and annual goals. This higher level of engagement directly impacts key organizational parameters such as retention, productivity, profitability, etc.
The business case for OKRs is very clear. However, for companies that are scaling up, with limited bandwidth and competing priorities, often setting OKRs itself gets left behind due to other business priorities.
If an organization focuses on a manual approach to the OKR system, there are several steps which require a lot of time and effort including setting and writing, implementing, tracking, grading, evaluating and modifying OKRs.
Fortunately, today there are OKR tools in the market, which can help automate all of these aspects to help simplify the OKR journey. The right goal management software can help you maximize the realization of the return on investment for your OKRs. Following are the top five ways in which an OKR software makes a measurable difference on the bottomline —
First, an OKR tool can help organizations document or record the OKRs in a way that is visible and accessible to all. There is supporting evidence to show that what gets documented has a higher chance of being achieved, as what is out of sight is often out of mind.
Individuals are 42% more likely to achieve goals when they are physically recorded.
Therefore, the OKR tool can enable organizations to clearly define the business and team OKRs in a written manner which can be reflected on, seen again and again to create instant recall for employees.
OKR tools are great for creating alignment and accountability. On the alignment front, the OKR software can help achieve high levels of strategic alignment on what is the responsibility of each team member across organizations towards the key business goal achievement.
Highly aligned companies grow revenue 58% faster and are 72% more profitable than their misaligned counterparts.
The dashboard of a good OKR software can help you constantly gauge the level of goal achievement, ensure that team members are aligned on different phases as well as keep a track of when their responsibility is due. It creates high levels of transparency.
Moreover, greater alignment leads to high levels of accountability. Generally, since there is a lack of alignment on responsibilities, there is an accompanying lack of ownership and accountability, and most employees shirk away from taking accountability.
84% of the workforce describes itself as “trying but failing” or “avoiding” accountability, even when employees know what to fix.
A goal management software like SuperBeings allows you to integrate OKRs with regular meetings and check-ins to keep track of progress. Thus, driving a culture of accountability.
It is very common for companies to set OKRs and then evaluate them only at the end of the quarter/year. There is a lack of mid-term tracking which makes it difficult to gauge whether the progress is aligned with the key results or not.
40% of people that write down goals don’t check whether they’ve achieved them. Moreover, only 5.9% of companies communicate goals daily.
An OKR software can help you address this concern by facilitating day-to-day OKR progress tracking. A daily dashboard and history of 1:1 and team check-ins on OKRs, can help organizations track developments over time.
It can also help identify and resolve any performance issues that stand in the way of goal achievement preemptively. At the same time, even if organizations are tracking and monitoring OKR progress, doing so with a manual process is inefficient. An OKR tool can automate most of these processes to enable HR and people managers to spend more time on driving results.
Another major concern that organizations face when it comes to OKRs is being prepared and ready for the same. Many line managers and others struggle with writing effective OKRs. Many organizations believe setting OKRs once is enough. However, that is far from the truth.
Research says, companies that set performance goals quarterly can generate 31% more returns than those reassessing annually.
Using an OKR software can help eliminate all these challenges.
Finally, an OKR software can promote high levels of collaboration for goal achievement. For many organizations, the inability to collaborate leads to low levels of results, diminishing the ROI for OKRs.
86% of employees and executives cite lack of collaboration or ineffective communication for workplace failures.
Using a good OKR software makes collaboration seamless by aligning cross-functional projects and tracking cumulative progress. Invariably, an increase in degree of collaboration is a direct ROI of an OKR tool which can create far reaching impact.
In this final section of the article, we will talk about the key parameters that can help you gauge the ROI of an OKR software. While the above mentioned are primary impact areas, most of them have a qualitative aspect to them.
Gauging the ROI requires backing of data points from employee experience and business results, which the following parameters can help explain.
Organizations should start by gauging whether or not transparency and alignment on goals has increased. This can be measured using employee pulse surveys to understand their opinion on how well they have visibility of goals and clarity on what they need to work towards. Therefore, the first ROI parameter for an OKR software is to identify the increase in level of transparency to ensure everyone is working in the same direction and there are no gaps or overlap in efforts.
The main purpose of an OKR tool is to facilitate the effective and efficient achievement of the goals set by an organization. Thus, the next parameter to measure ROI should revolve around the degree and time period of goal achievement.
You can start by comparing the degree of goal achievement by leveraging OKR grading to see if there is a significant improvement in percentage terms as compared to pre-OKR tool period. Second, it is important to gauge whether or not the goals/key results have been achieved in a shorter period of time or not. Since the OKR platform facilitates better alignment, collaboration, tracking, etc., it can help organizations achieve or realize the goals faster.
Third, there are several administrative overheads that accompany the setting and implementation of goals/OKRs. These include tracking, grading, etc. for managers and providing inputs on the part of employees. The ROI of an OKR software can be gauged by mapping whether or not these overheads come down.
The next parameter for ROI calculation is to measure the change or increase in revenue after the adoption of an OKR software. Since an OKR tool seeks to enable organizations to achieve their goals faster, cost effectively and to a greater extent, there should be an increase in the revenue realized.
According to Larry Page, co-founder, Google claims that “OKRs have helped lead us to 10X growth, many times over.”
Finally, gauging the value of employee parameters like retention/turnover, productivity, engagement, etc, can cumulatively be leveraged to capture the ROI of an OKR tool. There are several ways to gauge these workforce parameters, along with factors like eNPS, etc. which have a direct business impact. Calculating them can help measure the ROI of the OKR tool for an organization.
It is evident that adoption of an intelligent OKR software is not only good to have, but integral for organizational success. Using the right tool has a direct business impact which can be measured in numbers using the ROI parameters mentioned in this article.
There are both qualitative and quantitative aspects to measuring the ROI and a balanced approach to both can empower organizations to align individual performance with business goals.
If you are considering implementing the right OKR software in your business, try out SuperBeings free 21 day trial. Book today. (No credit card or commitment required)