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The Link Between Performance Management and Employee Engagement
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Employee Experience

The Link Between Performance Management and Employee Engagement

How are your employees performing at work? If performance is lackluster,

employee disengagement may be the root cause.

That’s why understanding engagement and performance management is

critical to success. It’s up to the organization and its managers to

fuel engagement, which results in improved performance and productivity.

Paycor Senior Business HR Business Partner, Becky Falvey, addressed this

topic in a recent webinar about why engagement and performance

management matter. According to Becky, “If performance management is

done correctly, it will be the direct driver of employee engagement.”

Why does employee engagement matter?

Companies with high engagement experience…

* 16% higher profitability

* 37% lower absenteeism

* 2.5 times higher revenues

* 65% reduction in turnover

* 18% increase in productivity

These statistics make a strong case for investing in employee


Three key drivers of engagement

* Connection: An employee’s connection to their boss, company and


* Recognition: Compensation, appreciation and acknowledgment of


* Performance: Development, feedback and professional growth

Performance management can improve all three of these drivers,

directly improving employee engagement. And statistics support this


* High-quality formal reviews increase employee performance by 25% and

employment engagement by 35%

* 43% of highly engaged employees receive feedback at least once a week

Why direct managers exert the most influence

Because direct managers are involved in the day-to-day performance

management of employees, they are critical to driving engagement. To

engage employees and improve productivity, managers should:

* Give high-quality informal feedback

* Accurately evaluate employee performance

* Articulate clear organizational goals

* Create clear work plans and timetables

Following these best practices, managers will have a direct influence

on employee engagement—and the organization’s bottom line.

Are you interested in learning more about performance management and

engagement? Listen to Becky’s complete webinar, Getting Performance out

of Performance


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