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

Case Study: Ohio Catholic Credit Union

Case Study: Ohio Catholic Credit Union

After working with an unfriendly HR solution that outgrew their business needs and made running reports challenging, Ohio Catholic Credit Union turned to Paycor for help. Now, the HR team can easily create the reports they need and extract the right data to share with the Bureau of Labor Statistics and senior leaders. Best of all, the enhanced reporting capabilities has saved the VP of HR 20 minutes each time she generates a report. Check out the case study below and discover why Ohio Catholic Credit Union trusts their most critical people management and payroll needs to Paycor.

Webinar: Feature Focus: Manage Access (Paycor Customers)

Webinar: Feature Focus: Manage Access (Paycor Customers)

Find out how you can leverage Paycor's Manage Access to it's full potential. You will learn how to create and assign roles and privileges in the system based on responsibilities.

Case Study: Capital Brewery

Case Study: Capital Brewery

Complicated reporting, poor customer service and the feeling that they just didn’t have control over the HR functions they really needed led Capital Brewery in Madison, Wis., to seek a payroll and time and attendance solution that provide an efficient and seamless experience. “Partnering with Paycor saves us time. It allowed us to create the reports we need and made onboarding so easy,” said Capital Brewery accountant Dawn Westhoff. “From requesting time off, processing payroll or just answering HR questions, Paycor is helping us handle everything professionally.”

Franchise Payroll: Answering Tough Questions

Franchise Payroll: Answering Tough Questions

It’s no secret that payroll for franchisees and franchisors can be a hodgepodge of confusion. Who’s responsible for payroll? Often, it’s a toss-up. With so much confusion it’s easy to fall victim to major fines and penalties. That’s why it’s so important to get payroll right. If you’re one of the lucky few (a franchise with a built-in payroll provider as part of the franchise agreement), great! But if not, you may be left with tedious HR tasks that take your focus away from your customers. Before we dive deeper, let’s identify the players in the game. “Employer” “Franchisor” and “Franchisee” Who’s Who? Owning a franchise is similar in many ways to running an independent small business, such as a restaurant or dry cleaners. One of the...