Measuring the business’s success is essential in creating strategic plans to achieve business objectives. Companies, including micro, small, and medium enterprises (MSMEs), should measure their success over time to see the trends that worked and those that did not. These deviations enable the company to see what to improve and what to strengthen based on their current initiatives. To start measuring the company’s business success over time, or the company growth rate, they can look at the following:
The business’s financial statements
The business’s financial statements illustrate the company’s financial growth over a period of time. Normally recorded quarterly and annually, the financial values that a company earns or loses over time can tell a lot about its current effort. By seeing the trends, the business can see the areas where it loses or earns more. The three main financial statements that a company needs to review are:
- The income statement, which measures the business’s profitability and losses over a period of time,
- The balance sheet, which shows how much the company earned and owes, and
- The cash flow statement, which measures the company’s liquid assets.
- Average number of new and retained customers
New and retained customers measure varying aspects of the company’s success. Customer retention shows how sticky or loved the company’s products or services are, while new customers show the popularity of the company’s products or services and how needed they are by the market.
Keeping track of both allows the company to create strategic plans that target both groups separately. They have varying needs and creating a plan that addresses them will enable the company to grow.
Customer and employee satisfaction
In relation to retained customers is their satisfaction with the company’s products and services. When a customer is satisfied, they are likely to conduct business with the company again, even promote it to their peers. Measuring this can be done through surveys and focused group discussions. Measuring customer satisfaction also allows the company to perform improvements or introduce new products and services that address what the customers need.
Satisfaction does not only apply to customers; employee satisfaction should be measured as well. Surveys, focused group discussions, and performance reviews measure the employee’s satisfaction with the company. If the employee is engaged, they are willing to go above and beyond for their personal and professional development. This, in turn, influences company growth as employees will become more active in providing feedback and ideas to develop and grow the business.
All these contribute to the company’s growth rate. And when the company’s growth rate continuously improves, a better future awaits the organization. One way of strategically improving the company growth rate is through process optimization. Digitization and automation are the first steps to process optimization; and these can be first implemented in the department that handles people: the human resources (HR) department. Through full-suite HRIS and payroll software like GreatDay Professional, the HR department can digitize employee and company documents and automate the following processes:
- Company and employee administration,
- Attendance and timekeeping,
- Leaves and overtime filing, and
- Payroll and e-payslip management
And when these are improved, the department can focus on creating improvement plans for the company’s vital asset: its employees.
What is company growth rate?
To digress, the company growth rate should first be explained. The company growth rate is the company’s profitability, sustainability, and growth potential. By understanding the company’s growth rate, companies investors, lenders, and even interested applicants will be able to see the company’s standing versus its goals.
The company growth rate is measured through specific variables associated with the company’s growth (mentioned above) over a period of time. This is usually expressed as a percentage. The variables can be based on industry and can be measured either quarterly or annually depending on the company’s requirements.
But in general, the company’s financial, customer and employee satisfaction, and customer acquisition are the things that affect company growth rate.
Getting the company growth rate
To get the company growth rate, first, consider the aspect of company growth to measure. Take financial growth, for instance. This involves measuring the current revenue with the previous revenue. The formula usually looks like this:
Revenue growth rate = (Current period revenue – Previous period revenue) / Previous period revenue x 100%
The results from the formula above, however, should be carefully evaluated before proceeding with creating strategic plans. This is so that the margin of error is minimal and discrepancies are kept low.
How HRIS software helps drive company growth
Technological investments like HRIS software play a major role in making it easier for companies to track its company growth rate and create solutions based on current and previous performance. As mentioned, with the use of HRIS software, companies can:
Streamline the recruitment process
Attracting and employing ideal candidates is essential to company growth. Apart from contributing to the company growth, the company should also provide them with the programs they need to grow as an individual and as a professional. To attract the right people, a streamlined recruitment process is required. Streamlining the recruitment process means enabling the candidate to submit their application and receive a job offer all under one platform. This lessens the time spent on using various platforms, therefore reducing complications throughout the hiring process.
And when a company has a streamlined recruitment process, the successful candidate can promote the company’s available positions to their peers or other interested individuals
Evaluate employee performance
As was mentioned, employee retention is vital. This exhibits that employees are satisfied with the company and are also more likely to suggest ways for the company to improve. To begin, creating an environment where employees can readily discuss with their managers their performance is key. By doing so, the workforce will be more open to feedback, and at the same time, provide feedback on the company’s processes and programs. Creating a culture where everyone, regardless of their position, can recommend improvements is a way for the company to implement the necessary actions that can help drive its growth over time.
Create people-centric solutions
With the use of HRIS software, companies can readily ask for employee feedback on the company to create and implement people-centric solutions. People-centric solutions are important as it is the workforce that will utilize the programs and processes that the company will create.
Companies can do all these for a minimal cost when they select GreatDay Professional as their HRIS software provider. Apart from the flexibility it provides, the ability to scale the platform across subsidiaries is also a major factor in creating a central employee database that the HR department can utilize. These, and the platform’s other features, will help the business to create people-centric solutions for the company’s growth.