We're thrilled to say that our performance management software saves teams 1000s of hours per year through automation, optimised processes and employee data, delivering a 9x return on investment, but how exactly did we arrive at these numbers? Today, we're sharing our calculations.
By helping teams automate and optimise goals, 1:1 meetings, feedback, reviews, surveys and employee career development, Frankli cuts HR admin in half and saves managers 100s of hours per year. And there are smaller but significant time savings at employee level too.
In this example, we take a company of 100 employees, calculating that the total number of hours saved is 3,560 - that's 445 working days per year! And that’s before we get into the benefits Frankli's performance management software brings across retention rates, culture and engagement. So let's take a closer look.
Where did we get these numbers?
To calculate Frankli's return of investment in terms of time-saving, we took a company of 100 employees as an example and compared the value of hours saved to the annual cost of Frankli's Scale package. The numbers used to represent the hours that HR, managers and employees save with Frankli are conservative estimates based on conversations with our customers, backed up by multiple pieces of research (1, 2, 3, 4).
Some interesting data points from this research:
- HR professionals spend an average of 73.2% of their time on administrative tasks (1).
- Managers say they spend an average of 210 hours a year on performance management activities (2).
- Managers say their employees each spend 40 hours a year on performance management activities (2).
- Managers spend 54% of their time on administrative tasks (3).
- Employees spend 25% of their time looking for documents, information or people they need to do their jobs (4).
How Frankli Delivers a 9x Return on Investment
Note: Savings based on a 100-person company with a 10:1 ratio for managers working a 40-hour week. Average salary figure for employees includes senior leadership salaries.
1. G&A Partners, HR’s Time-Consuming Toll on Your Company. 2. SHRM, Is the Annual Performance Review Dead? 3. Harvard Business Review, How Artificial Intelligence Will Redefine Management. 4. Glean, Hybrid Workplace Habits and Hangups.