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

How to Build Effective Teams - Infographic

How to Build Effective Teams - Infographic

Paycor asked more than 1,000 leaders of medium & small businesses what makes teamwork work. What they said may surprise you. Check out our infographic for the highlights.Share this Infographic On Your SitePlease include attribution to https://www.paycor.com with this graphic.

Case Study: Price Brothers, Inc.

Case Study: Price Brothers, Inc.

A need for robust reporting tools and a modern HR and payroll platform with onboarding capabilities led Price Brothers, Inc., to Paycor. “We’re constantly hiring and looking for skilled trade help on a daily basis. Now they can fill out the application online and we can email them the new-hire paperwork. They can complete everything online before their first day.” - Kim McLaughlin, CFO, Price Brothers, Inc. Why Price Brothers, Inc., left their payroll provider Price Brothers, a Charlotte, N.C.-based plumbing contractor who specializes in new-home construction, needed a more modern HR and payroll platform that could keep up with their growing business. Their former solution wasn’t intuitive and didn’t collect all the data they needed for...

Case Study: Meeder Investment Management

Case Study: Meeder Investment Management

Adding Paycor Recruiting, Onboarding and Learning Management to their HR process helped Meeder Investment Management save time and increase employee engagement. “I love the ATS (applicant tracking system). It’s so easy to use. All the communication is right there. I can see manager feedback; I can see next steps. And then I click a button and all the [new hire] information seamlessly transfers to payroll. ” - Debbie Harris, HR Manager Prior to Paycor Meeder Investment Management, based in Dublin, Ohio, needed an automated recruiting, onboarding and LMS that integrated with their current system. Previously, they were tracking PTO by hand in Excel, manually entering new hire information and calculating paper timecards. Their LMS often...

Case Study: Buy Sod

Case Study: Buy Sod

Buy Sod Inc. Partners with Paycor to Pay Employees & Maintain Tax Compliance “Because we’re a niche company, our administrators sometimes have trouble uncovering and implementing best practices. But when we partnered with Paycor they brought the expertise and thought leadership to help us overcome tough challenges like the new EEO-1 report. Paycor has the patience, knowledge and resources to help us stay ahead of problems and grow.” - Jennifer Hillard, Director of People and Culture Why Buy Sod Inc. Chose Paycor In 2002, three family businesses came together to create a network of sod farms that operate and distribute around the country. But with ten locations and eighteen different payrolls to process, Buy Sod Inc. struggled to...