Employee engagement is an influential component of an organization’s success. Without an engaged workforce, companies face challenges in meeting corporate objectives in a timely fashion, improving profitability, and retaining quality talent. A recent study conducted by Gallup asserts that a disengaged staff costs an estimated $960 million per year on the low end, potentially reaching up to $1.2 trillion among the world’s largest companies.
Conversely, businesses with highly engaged employees have 2.6 times higher earnings-per-share potential than those without a motivated staff.
Being unmotivated or uninterested in the work performed each day may correlate back to several underlying factors, including lack of timely recognition, minimal feedback from management, poor career and personal development tools, and an outdated performance review process. Increasing employee engagement is not a small task, but it is crucial to foster an environment in which both people and businesses thrive. One way organizations can improve the level of employee engagement is with the help of performance management software.
Offer Real-Time Feedback and Recognition
Studies show that employees who do not receive accurate feedback from their supervisors or colleagues are more prone to disengagement on the job, and ultimately, they may pursue careers with a different organization altogether. One of the most notable benefits of adding performance management software to the technology stack of an organization large or small is the ability to provide real-time feedback to staff. Consistent feedback that is easily shared and trackedallows both employees and managers to stay abreast of how work is being performed in the moment, and it leads to more efficient and valuable performance appraisals.
In addition to continuous feedback capabilities, performance management software also offers a method to deliver recognition when it is due. Through a connected platform, performance management solutions highlight key performance metrics and link them to accomplishments among employees. Being able to see how an individual’s contributions directly impact performance stimulates greater engagement for both the immediate and long-term.
Link Corporate and Individual Goals
Many workers cite not knowing or misunderstanding how their individual work contributes to the greater good of the organization as a reason why they are disengaged. Implementing performance management tools gives companies a way to simplify the goal development process, as well as the ability to connect those goals with employee objectives. When staff members have a line-of-sight between the work they perform and the impact it has on corporate initiatives, they are likely to be more engaged.
Improved Decision-Making
The thoughtful tracking and monitoring of performance also gives organizations invaluable data they can use to make staff-related decision-making more effective. A software solution can provide a streamlined system for the ongoing capture of this data, including feedback and recognition, progress toward career and corporate goals, and performance metrics. When combined, this data lays the groundwork for insightful, useful information for the company’s human resource decisions. These multiple data points are often compiled in a manager dashboard that allows for easy access to information that is then used for hiring or promotion decisions. Staff members also feel more confident that management decisions are based on accurate, relevant information.
Link Professional Development with Career Management
These days, it’s not just about growing skills for the current job. Employes are generally more engaged when they see professional development opportunities that also support career advancement. Some performance management solutions have the ability to integrate with other powerful technology tools, such as career pathing software. Through this platform, employees are given simple tools to help map out career paths and the training and professional development requirements needed to achieve each track. Management teams can utilize career pathing software in conjunction with or separate from performance management solutions to clearly define job competencies and skills, as well as accurately identify gaps in talent throughout an organization.
Creating an environment where continuous feedback, recognition, goal alignment, and professional development work together for the benefit of the employee ultimately leads to more successful, efficient operations within companies large and small. How this is done requires different strategies for different organizations, but the use of performance management software and connected platforms like career pathing tools can make a significant difference.