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
* 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.
Buyer's Guide To HCM And Payroll Technology
An HCM platform is the foundation of your business, and choosing the technology is one of the most important decisions you'll make.Get Expertise
Stay Up to Date
Sign up to receive our latest research and expert advice.
Check your inbox for an email confirming your subscription. Enjoy!