3 Steps To Get More ROI From Your Employees

Posted by Jim Connolly on 10 June, 2009  Email This Post -  Print This Post

We don’t like to think of employees in a cold/harsh sense like ROI (Return On Investment), but at the end of the month/year, the bottom line tells the cold/harsh reality or warm/celebratory reality.

Improving sales or gross profit or profits or employee performance are outcomes to be achieved.  The key question is how do you make these things happen?  The answer is to get more of a return on your investment in your employees.  This is an area with hidden profit potential and most of your competitors will ignore this opportunity.

Here’s how it works in three steps:

• First, compare an employee’s current performance on their top 3 primary tasks/duties against the performance of a “peak performer” in the same position.  This is critical because a peak performer provides a substantially higher ROI than an average performer.
• Second, write down what’s different between the performance of your employee and a peak performing employee in the same position? 
• Third, answer the question “Why is there a gap?”  Answer that question and you have an action plan for building a peak performer. 

The action steps may include equipping the employee with some additional knowledge or skills.  However, the action step might also be the realization that this employee doesn’t have the raw talent to perform this task/duty at a peak performance level.  If this is the case, you may have an action step that you don’t want to face, but your company’s results depend on what you do in situations like this.

We help organizations with issues like this every day.  It’s not easy, but there is a significant return on investment.