The Link Between Performance Management and Employee Engagement

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 engagement!

Three key drivers of engagement

* Connection: An employee’s connection to their boss, company and job
* Recognition: Compensation, appreciation and acknowledgment of achievements
* Performance: Development, feedback and professional growth

Performance management can improve all three of these drivers, directly improving employee engagement. And statistics support this connection:

* 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 Management.

For more best practices like this, sign up for our monthly Industry Insights e-newsletter.

More to Discover

Leave of Absence Policy and Acceptance Letter Template

Leave of Absence Policy and Acceptance Letter Template

Every business needs a leave of absence policy that clearly lays out how employees can apply for time away from work, and what the terms of this leave will be. There are many reasons an employee may require a leave of absence from work and while employers usually have the right to reject a request, it’s almost always the right call to allow employees to take leave.The distress and uncertainty caused by COVID-19 has only made it more important that businesses take an understanding approach to employee welfare, even if they are not eligible for FMLA leave. Whatever the reason an employee needs some time away from work, it’s important that, when accepting such a request, employers lay out exactly what it means for an employee’s status in...

COVID & the Future of Work: Insights from Paycor’s C-Suite

COVID & the Future of Work: Insights from Paycor’s C-Suite

The long-term future is impossible to predict, but what might all this mean, and how will work change, over the next year?In Paycor’s latest report, our Chief Executives and Group Leaders consider how SMBs will recruit, manage their workforce, optimize benefits and foster employee experience in the new normal of 2020.Download our guide to learn more.

Webinar: Remote Work 2020: Keeping Culture Strong Post COVID-19

Webinar: Remote Work 2020: Keeping Culture Strong Post COVID-19

Workplaces across the country will never be the same post COVID-19. Some employees will work from home permanently. Others may slowly return to the office but feel the impacts of social distancing and newly configured spaces. Amidst all the change and uncertainty, culture has never been more important. In this session, we will offer tips to help your culture thrive in this new normal.Speaker: Melanie Booher Melanie Booher is a proactive people connector, genuine leader, change agent, culture-champion and entrepreneurial business coach. Her passion lies in generating meaningful change in the areas of HR, People Operations, Talent Management, Leadership Development, Business Strategy and Culture-Shaping.

Webinar: Post COVID-19: Reimagining the Future of Work

Webinar: Post COVID-19: Reimagining the Future of Work

Join us for a special roundtable discussion on what the future holds for HR leaders post COVID-19 featuring HR experts Jennifer McClure, Jon Thurmond, Wendy Dailey and Joey Price. They will discuss a variety of topics including how to navigate this new normal, new challenges facing HR leaders, personal experiences on motivating employees and keeping engagement strong and much more.