Looking for ways to increase your revenue and maximize your profit?
Employees are your company’s most valuable asset and making sure each employee is focused on the right things is critical for revenue growth and profitability.
A recent study indicated that over 50% of all employees don’t know what is expected of them and only 30% feel involved in the goal setting process.
One way to drive focus, clarity, engagement and ultimately productivity, is through employee goal tracking.
According to UNC Kenanflager Business School, organizations with highly engaged employees had an average 3-year revenue growth 2.3 times greater than companies whose employees were only engaged at an average level.
The fastest growing companies are using employee goal tracking to align their teams with company goals to avoid costly miscommunication and drive engagement.
A Siemens study showed that a business with 100 employees spends an average downtime of 17 hours a week clarifying communication, translating to an annual cost of $528,443.
So how can employee goal tracking improve top line growth and profit? Here are 5 ways….
Employee Goal Tracking Ensures Each Employee Is Focused On The Right Things
Goals have the effect of focusing our efforts. When employees have goals and tracks them, the process focuses their efforts on the the things which, if done correctly, move the needle for the business.
It’s amazing to me at the number of sales employees that do not have goals, or if they do, they are not tracking those goals on a weekly or monthly basis.
Want to improve the results of your sales team? Set a goal for each member and have them report back to you their results on a regular basis.
Employee Goal Tracking Makes Sure Each Employee Is As Productive As They Can Be
This goes hand and hand with the last point. Focus drives productivity. Focus ensures that each employee's resource of time (which translates into dollars) is maximized. When an employee’s time is fully utilized, productivity increases.
For example, if you’re paying an employee $25/hour and you bill out that employee’s time at $50/hr. Setting a billable goal and tracking that goal will allow you to measure their productivity in a precise way. I’ve seen companies do this one simple thing and drive revenue increases of over 20%.
Again, if the employee doesn’t know the goal, they may spend their time on non-billable activities.
Employee Goal Tracking Lets The Employee Know What’s Expected Of Them
When expectations are clear employees spend less time guessing about what is expected of them. It turns out that clear expectations also drive employee happiness. Employees want to know what is expected so they know if they are doing a good job.
Clarity drives results, especially when it comes to sales and revenue. What get's measured get done.
Employee Goal Tracking Confirms Your Company Is Focused On The Right Things
Employee goals tracking acts as a self-correcting system.
As managers meet with their direct reports to check in on goal progress, the linked company goals are reaffirmed.
If you find that there is misalignment (the wrong company goal is set) or if the company goal is just not realistic, this feedback can be bubbled up to the management team and course correction can be made, saving your business thousands.
Are you struggling with Excel spreadsheets to track employee goals, company goals and KPIs/metrics? Need something to tie it all together?
Envisionable can help.