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Example of Performica
ROI Overview

Employees

x

Attrition

=

Employees lost per year

x

Onboarding & recruiting costs

=

per employee

Total current cost of attrition:

Expected attrition reduction:

Improved attrition rate:

–=

Improved cost of attrition:

Net savings: current cost of attrition minus improved cost of attrition minus the cost of Performica =

ROI

=

Net savings

Performica cost

=

=

Or

Number of employees that the company needs to save
to have Performica pay for itself:

/ =
So ~ employees
X

Thanks for your interest in Performica.

Erin McCune

Co-founder and CRO

(503) 793-3888

[email protected]

We look forward to working with you and !

Thanks for your interest in Performica!

Creating this business case is the first step towards saving millions of dollars in attrition costs and improving morale for your
employees.

The reason we created this business case for you is that we’ve heard
from HR leaders over the years that having to research and write
a business case for critical software adds one more “to do”
on their already overloaded plate.

Performica makes it easy to save your best people using guided actions
leveraging your unique data, and there’s no better way to demonstrate
how easy it is to work with us than to provide you with a ready-to-deliver
business case, tailored to your company’s needs.

What’s included in this business case

  • Overview
  • Business Requirements
  • Contribution to Business Strategy
  • Options Considered
  • Benefits
  • Timeline
  • Milestones
  • Stakeholders
  • Costs
  • Expected ROI
  • Risks

We’ve provided you with an editable copy of this business case,
so you can add or modify any of the details provided,
but there’s no editing required.

The Return on Investment (ROI) calculated takes into account
your unique business characteristics and challenges,
and is a mathematical formula used to determine the ratio
of how much money your business will save vs. the amount of money spent;
the higher the ROI, the more financial sense the investment makes.

For a tool like Performica, this means calculating:
(amount saved – costs) / (costs) x 100

Typically, a project like this needs buy-in from your finance team,
your IT team, and often other C-level executives to ensure it is successful.

We’re happy to schedule time with your team to discuss
the project scope, timeline, and milestones.

Retention Improvement
Project Sponsor: [contact name]
Project Manager: TBD
Date: [today’s date]

Business Requirements

currently has employees, and attrition rate over the last year.
With our average salary for these employees of , and using the Gallup estimate that turnover costs 1.5-2X an employee’s annual salary, this means that ’s turnover costs us annually.
Turnover also negatively impacts morale, as remaining employees have to pick up the slack for their former coworker. When employees leave, important projects are often delayed and deadlines are missed. New employees can also take up to two years to reach full capacity.

Contribution to Business Strategy

In today’s competitive job market, top employees like has worked hard to cultivate are in high demand and are difficult and expensive to replace. Voluntary attrition is frequently contagious;
In today’s competitive job market, top employees like has worked hard to cultivate are in high demand and are difficult and expensive to replace.

Voluntary attrition is frequently contagious; employees are up to 6 times more likely to leave when their coworker leaves due to turnover contagion.

Reducing employee turnover by even 5% will save dollars per year.

Other immediate, tangible benefits include improved company morale, a higher on-time project completion rate, and lower stress on managers and recruiting staff. 

Reducing turnover allows our team to focus on our core company initiatives, rather than scrambling to cover for people who left while trying to backfill positions.

Options Considered

Performica – the company recently emerged from stealth mode after developing and improving their technology for 8 years at Invitae. Performica plugs into ’s communication platforms (calendar, email, Slack, etc.) and HRIS system.

This allows Performica to recognize cross-functional and informal
relationships that are missed by other HR platforms.

Performica then uses their proprietary OrgGraph™ to automate
HR best practices, making it easy for our managers and HR leaders
to identify top performers, improve retention, and focus
on our business initiatives.

Benefits:

Performica’s team makes it easy for IT, HR, and managers to launch their retention program and save dollars in the first year.

Performica’s proprietary technology identifies at-risk employees based on actual working relationships (going beyond org chart),
and notifies the relevant managers.

Performica provides automated step-by-step guidance for managers using AI and proven HR best practices, reducing turnover and improving morale and productivity.

Timeline:

Expected timing is a 90–120 day rollout from date of signature.

Milestones:

  • Sign agreement
  • Project kickoff
  • IT Systems Integration
  • Key stakeholder training
  • Frontline manager training
  • Ongoing support and communications

Stakeholders

IT team: Assist Performica with integrations for HRIS
and communication systems.

HR team: Schedule training for key stakeholders and frontline managers,
tier 1 support once installed

C-level executives: Retention programs are most successful
when executive leadership believe in its importance and value,
participate themselves, and integrate the program into company culture.

Costs

One-time costs

Integration Costs [employee count] x Training x

Recurring costs

Performica subscription x $120
Total year one

Expected ROI:

With the current attrition rate at of , and average knowledge worker salary of , our cost of attrition is currently .
Based on a 5% reduction in attrition, this translates to a year one savings of
Based on the above costs, ROI is estimated to be ( / x 100%)

Risks:

Potential project risks include:

(risk: low)

IT integrations taking longer than expected

(risk: medium)

Managers not choosing to participate in the program – mitigated by continually tracking and communicating success of participating managers

(risk: low)

Less than a 3% reduction in turnover

Case studies:

From Org1 to Performica

The case study details evolution of Performica — a predictive
people analytics platform.

Performica utilizes network graphs to identify collaboration trends,
silent influencers, and highlight salary and performance discrepancies.

The refined platform incorporates predictive capabilities,
such as identifying employees at risk of leaving and suggesting
preventive actions, effectively providing HR management
consultation as a software service.

Wharton’s 2023 People Analytics White Paper Competition:

1st place winner

London Gates Case Study

Performica delivers the data-driven guidance London Gates
needs to retain and engage its top employees, identify workers
that may be in need of assistance, and establish a real-time
collaboration loop that demonstrates the organization’s
commitment to transparency.