The Great Resignation has become the Great Retention, and keeping talent is more of an art than ever before. But not all talent is created equal. Who is standing out? Who needs some guidance to improve? Is that top-tier recruit who had a bumpy start ultimately paying off - or is it time to cut your losses? The ability to accurately assess performance across team members is crucial for executives to know they are getting the most out of their team. Of course, the annual performance review offers an assessment, but research shows highly engaged employees discuss their performance with management far more often than once a year. It takes work and skill to effectively measure performance and gauge the ROI for each employee.
In fact, the finance world has a strong model for how to assess which investments are sound and which are too risky. Anyone seeking a loan is analyzed by an algorithm that uses external and internal measurement factors to determine creditworthiness. After applying various weightings and other analytics, the lender can make a decision on whether or not to lend, how much to lend, and at what rate.
Imagine if assessing employee performance could be that detailed! This is where a Chief Performance and Retention Officer (CPRO) comes in. The CPRO would be someone responsible for administering this system, determining how and when to weight various criteria related to employee performance. Then, they would report to management which employees are areas of concern and who is proving to be an excellent investment.
Once identified, those employees who are performing at the top of their game can be rewarded to help increase retention. Research has shown only 14% of businesses give managers the tools they need for rewards and recognition and 81% of executives report working for organizations that don’t prioritize recognition programs. Employees who are recognized are more likely to be engaged and engaged employees are less likely to look for other jobs. In fact, workhuman reports that “by making recognition an important part of company culture, a 10,000-person organization with an already engaged workforce can save up to $16.1 million annually due to reduced employee turnover.”
Installing a CPRO could make that savings a reality.
Even better would be a CPRO with access to a tech solution that can help monitor and reward in real time the performance of employees. Something that could, for example, analyze general information like P&L statements to determine the most valuable areas of a company and, thus, add further weight to those employees. Performance tech solutions, like Keep’s Performance Rewards, can also be utilized to incentivize key employees to hit their performance goals sooner than anticipated.
With systems, people, and finance expertise, the CPRO and CHRO can work together to improve overall employee engagement and retention. The right CHRO and CPRO working together to hire, retain, and engage great employees is a team primed to take their workplace to the next level of productivity.