Performance Management Training Delivers Results (and ROI)!

by | Feb 26, 2016 | Top-Tier Teams

Performance management training is a highly effective top-down approach to building a stronger company and achieving new levels of success. The quality and capabilities of your management team have effects that ripple strongly through the entire organization.

Investing in performance management training has been show to yield:

  • 24{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} higher profit margins (ASTD)
  • 86{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} higher company value (ASTD)
  • 21{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} increase in productivity (U. of North Texas)
  • 300{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} reduction in employee turnover (Business Week)
  • $6.72 return per dollar invested (Federal Reserve Board) 

In addition, performance management training saves supervisory and administrative time and costs. The less managers have to deal with monitoring employees and addressing secondary issues, the more they can devote themselves to more profitable activities.

Performance Management Training for Employee Satisfaction

Employees leave when they don’t like their management. As reported by The New York Times, this is true even if they like what they do, are well paid, are offered recognition, and are given opportunities for professional development. And sometimes leaving is the best part, since unhappy employees don’t deliver their best work or the best customer service.

Turnover and new-hire costs are a resource drain for any company. On average, 46{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} of new hires wash out in their first 18 months, according to Leadership IQ. The Wall Street Journal reports the total cost of employee turnover ranges from 50 to 60{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} to 100 to 150{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} of the employee’s annual compensation.

Imagine the savings if your company retained just one or two additional employees each year. Take a mid-level manager that earns $35,000. If you had to replace this manager, at minimum, it would cost you $17,500. How many managers does your company lose per year? If it’s two, that’s $35,000; five managers, and that’s $87,500; 10 managers, and that’s $170,500.

Performance management training is the key to employee satisfaction and loyalty. A Hackett Benchmarking and Research report shows that companies that spend $218 per employee on training have a 16{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} voluntary turnover, while companies that spend over $273 per employee on performance management training have turnovers of only 7{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be}.

Pici & Pici Performance Management Training

Our training helps you improve your bottom line with 4 simple steps:

  1. Improve Communication and Listening Skills: 47{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} of workplace conflict is caused by poor communication. Enhance the effectiveness, commitment, and retention of your existing workforce though increased understanding of human behavior.
  1. Prevent Conflict: Reduce conflict between management and employees and between employees. Identify motivational and managerial issues related to interpersonal style for smoother operations and lower risk of miscommunication that can prompt problems.
  1. Build Productive Teams: Performance management training increases worker productivity in many ways, including by improving employee mood and loyalty, reducing time lost to conflict, making communication more efficient, and freeing up managers for their most essential duties. Just a 2{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} increase in productivity can net a 100{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} ROI, as found by The 2001 Global Training and Certification Study by CompTIA and Prometric.
  1. Enhance Employee Job Satisfaction: Many people assume that if employees are well trained, they are more likely to leave for greener pastures. But the opposite is true; trained staff are happier and more likely to stay put. Their self-esteem improves, which in turn improves morale and loyalty. A Louis Harris and Associates poll reports that among employees with poor training opportunities, 41{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} plan to leave within one year, while only 12{db95e0fd77ae6d141d4535e2bf7b464d98e4151322120f553d7786be9a7303be} of those who considered their company’s training opportunities to be excellent plan to leave.

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