Employee Engagement
Team Management
10M

10 Benefits of employee engagement, and why it's so important

Published on 
September 2, 2022

Every manager wants to lead employees who are committed and connected to their work. In other words, they want a team of engaged employees. But why, exactly, is this so important? What are the benefits of employee engagement?

Many things play into employee engagement. Things like how happy employees feel at work, how connected they are with their peers and manager, and how often they feel recognized and appreciated for their contributions are just a few factors of engagement.

When employees are truly engaged, teams go from being good to being great. Challenges turn into opportunities, outcomes turn into achievements, and people give it their all. Let's explore this more closely.

Managers are often told that they need to work on employee engagement. However, the concept of engagement is sometimes hard to understand. We built a list of 10 important benefits to help you understand what employee engagement really looks like.

10 Benefits of employee engagement

The reason employee engagement is so important is simple: it affects all aspects of work. Benefits around engagement impact employees, teams, managers, and the organization as a whole.

1. Better team performance

Employee engagement doesn't just benefit individual employees – it benefits the team. This is because engaged employees perform at a higher level. And when you have a group of engaged employees working together, the team naturally performs at its best as well.

Not only that, but employee morale can be really contagious. When team members are surrounded by driven and motivated peers who care about what they do, they're more likely to feel engaged in their own roles. Individual engagement leads to team engagement, and individual performance improves team performance.

2. Increased employee productivity

Highly engaged employees are more efficient and produce higher-quality work. Why? Because they're personally invested in their job, and their performance matters to them. They're aligned with the team and business goals, and accountable for their individual contribution. This means increased productivity on your team and greater returns for your business.

{emphasize}

Check-in on employee engagement in every one-on-one meeting. If you spot a drop in performance or productivity, it could be an indication of disengagement.

{emphasize}

3. Achieved team objectives

Speaking of hitting targets, employee engagement plays a huge role in your team's success and achievements. As a manager, it's natural to focus your attention on your team's goals. But this doesn't mean you should neglect the employee engagement side as it has a direct, positive impact on your objectives.

It's a two-way street: team members that are aligned on goals feel more engaged, and engaged employees are more motivated to work towards common objectives.

92% of employees believe that their organization can reach its objectives.

Officevibe’s Pulse Survey data

Team members who believe in the vision will help you get there. And they do so because they are engaged in their work and aligned with your business strategy.

4. Less workplace stress

Engaged employees and disengaged employees alike are susceptible to stress at work. The difference lies in how it's managed, as well as the outcomes of that stress. And as a manager, your support will play a huge role here.

For engaged employees, some stress at work is usually much easier to manage and could even become a motivator. Employees who are engaged tend to be more self-aware and can better detect when their stress levels surpass a healthy threshold. They're also more prone to seek support from managers and peers when needed.

On the other hand, when engagement dwindles, stress can become unmanageable and sometimes even detrimental to people's well-being. And this is especially true when employees do not feel a sense of belonging at work and feel unsupported.

Be mindful of when and how you push people. Stress can be a sign that we're on the brink of something amazing! But it can also completely hinder us from reaching those achievements. Make sure your team members know that you have their backs and that stress is only okay if it's propelling them forward.

{emphasize}

💡Not sure how to detect signs of stress? Use our free survey template to help you assess your team's stress levels and uncover the root causes.

{emphasize}

5. Lower risk of burnout

Employee burnout, which the World Health Organization defines as an “occupational phenomenon… resulting from chronic workplace stress that has not been successfully managed,” is one of the biggest issues facing today's workforce.

When employees reach the point of burnout, it has serious consequences – for them, your team, and your organization. Burnout is bad news. But the upside? By keeping your employees engaged with their work and monitoring stress levels on your team, you're helping significantly lower their risk for burnout.

{emphasize}

Burnout symptoms to look out for: 

  • Mental and physical exhaustion
  • Lowered productivity
  • Decreased sense of accomplishment
  • Decreased job satisfaction
  • And – you guessed it: lack of engagement with work

{emphasize}

6. Lower employee absenteeism

Absenteeism has become a big issue in recent years. In the United States alone, nearly one million people skip work each day due to stress. And alarmingly, those who take time off for mental health reasons are seven times more likely to be absent in the future.

47% of people say they regularly feel overwhelmed at work.

Officevibe’s Pulse Survey data

When workloads become overwhelming and work-life balance feels unattainable, engagement falls and absenteeism takes a hike. So how can you help as a manager? You can improve employee engagement by fostering a motivating environment that prioritizes health and well-being. You'll see your engaged employees excited to show up for work (online or in person), innovate with ease, achieve goals, and perform at the highest level in no time.

{emphasize}

Reach out to employees when you notice changes in their behavior like taking more sick days or participating less in team meetings. Avoid coming from a place of frustration or judgment, and come from a place of care. Maybe something is going on that you couldn't have spotted otherwise, and you might even be able to help.

{emphasize}

7. ... And lower employee presenteeism as well

As Investopedia clearly puts it, presenteeism is "the lost productivity that occurs when employees are not fully functioning in the workplace because of an illness, injury, or other condition." These days, presenteeism is most often due to mental health issues like stress and anxiety. It traps employees in a negative loop where their challenges contribute to low productivity, and their low productivity causes more anxiety. The catch-22: employees dealing with presenteeism just end up "working" more to compensate.

Unlike absenteeism, the signs of presenteeism aren't stark, so it often goes unnoticed by managers until it becomes a bigger problem. The good news is that measuring employee engagement can help you detect whether your team is struggling and can point you in the right direction to improve your employee's experience at work.

Healthy and engaged employees that feel supported by their managers and peers naturally perform better at work. So, next time feel your team's productivity levels dipping, remember to create a virtuous circle of employee engagement.

8. Higher employee retention and lower turnover rates

If you want to build a high-performing team, you need your employees to stick around. It's hard for teams to do their best work if employees are constantly cycling in and out. When long-standing employees leave, they take valuable knowledge and expertise with them. Plus, training new hires is a significant investment of time, energy, and resources.

An engaged, satisfied employee who's committed to their objectives is less likely to leave. So by improving employee retention rates, you'll have more engaged employees that make your team stronger, more experienced, and better equipped to hit targets.

{emphasize}

Conduct stay interviews regularly. Unlike exit interviews, stay interviews help you spot a disengaged employee before a valuable team member leaves. Every three months, ask your employees what's keeping them at the company and what they enjoy about their work.

{emphasize}

9. Strong ambassadorship and employer brand

A great employer brand is key to business success and it starts with high employee engagement. An engaged employee is more likely to vouch for their organization, and this ambassadorship is worth more than gold in today's labor market.

In fact, highly engaged organizations are usually raved about externally on job search platforms like Glassdoor and through word-of-mouth. So if you're looking to be on everyone's list of dream workplaces, you'll want to make sure your ambassadors are satisfied and motivated at all times. Employee engagement surveys are a great tool to keep these metrics in check.

{emphasize}

📏 Measure employee engagement by calculating your employee Net Promoter Score. This metric will paint a clear picture of your team's ambassadorship levels and their likeliness to promote your organization as a great place to work.

{emphasize}

10. Easier recruitment

It's no surprise that when your employer brand shines, HR's job becomes way easier in the recruitment process. Candidates want to be 100% sure when deciding to join an organization, so they're sure to scour online reviews or their networks for the scoop on what it's like to work at your company.

If your employee engagement is strong, you have nothing to fret about. In fact, your employees are probably doing a lot of the heavy lifting when it comes to attracting top talent simply by speaking highly about their positive experiences at work. And considering that 66% of candidates want to hear more from employees, you'll want to continue involving engaged employees throughout your recruitment.

How to improve employee engagement in your team

Your employee engagement strategy is a part of how you manage your team and doesn't have to add to your workload. Here are some engagement ideas you can try.

Make a healthy work-life balance non-negotiable

No matter how much employees love what they do, if they're overwhelmed or always on, they're going to burn out and disengage. Strong company culture will encourage a healthy work-life balance, which leads to a more engaged workforce. This is especially important on remote or distributed teams, where it's easy for the line between “work” and “home” to blur even more.  As a manager, you can make balance the norm on your team.

Set clear, firm expectations and boundaries around work communication, business hours, and taking time off. Openly encourage people to take breaks, book long weekends, and pursue their passions outside of work. Make sure that everyone feels comfortable logging off early if they've completed their work for the day.

{emphasize}

Ask the right questions to learn more about your team's well-being with these employee wellness surveys.

{emphasize}

Measure employee engagement, and talk about it

An employee engagement survey is a great way to collect information on how your people are feeling. Measuring employee engagement helps you spot any issues before they spiral into bigger problems. Officevibe's employee engagement software sends weekly surveys to every member of your team so you can keep a pulse on engagement levels.

Plus, you can collect employee feedback on an ongoing basis. From there, you can plan (and keep track of your notes) directly in the one-on-one software, so engagement is always a talking point.

Help your team set - and achieve - their goals

Your team will be more engaged when they feel like they're making meaningful contributions to collective business objectives.

First, help them understand those objectives. Then you can work together with them to set team goals that are aligned. Finally, set individual goals with team members so they have a clear path forward and something to strive toward.

You can set and track individual goals with each employee using Officevibe, and connect them to team goals in the app. Plus, it's easy to set smaller action items in every one-on-one, and then add it as a talking point for your next meeting so you're sure to follow up. This makes goal progression a part of every discussion, so employees feel supported and empowered.

Employee engagement leads to higher-performing teams

Employee engagement is a crucial part of high-performing teams. Now that you know the benefits of employee engagement, you can put these suggestions into practice – and watch your team thrive as a result.

Want to see where your team stand? Sign up for Officevibe and start measuring your employee engagement today.

Discover Workleap Officevibe's latest benchmark report on 12 key employee engagement metrics

What's in this article
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Every manager wants to lead employees who are committed and connected to their work. In other words, they want a team of engaged employees. But why, exactly, is this so important? What are the benefits of employee engagement?

Many things play into employee engagement. Things like how happy employees feel at work, how connected they are with their peers and manager, and how often they feel recognized and appreciated for their contributions are just a few factors of engagement.

When employees are truly engaged, teams go from being good to being great. Challenges turn into opportunities, outcomes turn into achievements, and people give it their all. Let's explore this more closely.

Managers are often told that they need to work on employee engagement. However, the concept of engagement is sometimes hard to understand. We built a list of 10 important benefits to help you understand what employee engagement really looks like.

10 Benefits of employee engagement

The reason employee engagement is so important is simple: it affects all aspects of work. Benefits around engagement impact employees, teams, managers, and the organization as a whole.

1. Better team performance

Employee engagement doesn't just benefit individual employees – it benefits the team. This is because engaged employees perform at a higher level. And when you have a group of engaged employees working together, the team naturally performs at its best as well.

Not only that, but employee morale can be really contagious. When team members are surrounded by driven and motivated peers who care about what they do, they're more likely to feel engaged in their own roles. Individual engagement leads to team engagement, and individual performance improves team performance.

2. Increased employee productivity

Highly engaged employees are more efficient and produce higher-quality work. Why? Because they're personally invested in their job, and their performance matters to them. They're aligned with the team and business goals, and accountable for their individual contribution. This means increased productivity on your team and greater returns for your business.

{emphasize}

Check-in on employee engagement in every one-on-one meeting. If you spot a drop in performance or productivity, it could be an indication of disengagement.

{emphasize}

3. Achieved team objectives

Speaking of hitting targets, employee engagement plays a huge role in your team's success and achievements. As a manager, it's natural to focus your attention on your team's goals. But this doesn't mean you should neglect the employee engagement side as it has a direct, positive impact on your objectives.

It's a two-way street: team members that are aligned on goals feel more engaged, and engaged employees are more motivated to work towards common objectives.

92% of employees believe that their organization can reach its objectives.

Officevibe’s Pulse Survey data

Team members who believe in the vision will help you get there. And they do so because they are engaged in their work and aligned with your business strategy.

4. Less workplace stress

Engaged employees and disengaged employees alike are susceptible to stress at work. The difference lies in how it's managed, as well as the outcomes of that stress. And as a manager, your support will play a huge role here.

For engaged employees, some stress at work is usually much easier to manage and could even become a motivator. Employees who are engaged tend to be more self-aware and can better detect when their stress levels surpass a healthy threshold. They're also more prone to seek support from managers and peers when needed.

On the other hand, when engagement dwindles, stress can become unmanageable and sometimes even detrimental to people's well-being. And this is especially true when employees do not feel a sense of belonging at work and feel unsupported.

Be mindful of when and how you push people. Stress can be a sign that we're on the brink of something amazing! But it can also completely hinder us from reaching those achievements. Make sure your team members know that you have their backs and that stress is only okay if it's propelling them forward.

{emphasize}

💡Not sure how to detect signs of stress? Use our free survey template to help you assess your team's stress levels and uncover the root causes.

{emphasize}

5. Lower risk of burnout

Employee burnout, which the World Health Organization defines as an “occupational phenomenon… resulting from chronic workplace stress that has not been successfully managed,” is one of the biggest issues facing today's workforce.

When employees reach the point of burnout, it has serious consequences – for them, your team, and your organization. Burnout is bad news. But the upside? By keeping your employees engaged with their work and monitoring stress levels on your team, you're helping significantly lower their risk for burnout.

{emphasize}

Burnout symptoms to look out for: 

  • Mental and physical exhaustion
  • Lowered productivity
  • Decreased sense of accomplishment
  • Decreased job satisfaction
  • And – you guessed it: lack of engagement with work

{emphasize}

6. Lower employee absenteeism

Absenteeism has become a big issue in recent years. In the United States alone, nearly one million people skip work each day due to stress. And alarmingly, those who take time off for mental health reasons are seven times more likely to be absent in the future.

47% of people say they regularly feel overwhelmed at work.

Officevibe’s Pulse Survey data

When workloads become overwhelming and work-life balance feels unattainable, engagement falls and absenteeism takes a hike. So how can you help as a manager? You can improve employee engagement by fostering a motivating environment that prioritizes health and well-being. You'll see your engaged employees excited to show up for work (online or in person), innovate with ease, achieve goals, and perform at the highest level in no time.

{emphasize}

Reach out to employees when you notice changes in their behavior like taking more sick days or participating less in team meetings. Avoid coming from a place of frustration or judgment, and come from a place of care. Maybe something is going on that you couldn't have spotted otherwise, and you might even be able to help.

{emphasize}

7. ... And lower employee presenteeism as well

As Investopedia clearly puts it, presenteeism is "the lost productivity that occurs when employees are not fully functioning in the workplace because of an illness, injury, or other condition." These days, presenteeism is most often due to mental health issues like stress and anxiety. It traps employees in a negative loop where their challenges contribute to low productivity, and their low productivity causes more anxiety. The catch-22: employees dealing with presenteeism just end up "working" more to compensate.

Unlike absenteeism, the signs of presenteeism aren't stark, so it often goes unnoticed by managers until it becomes a bigger problem. The good news is that measuring employee engagement can help you detect whether your team is struggling and can point you in the right direction to improve your employee's experience at work.

Healthy and engaged employees that feel supported by their managers and peers naturally perform better at work. So, next time feel your team's productivity levels dipping, remember to create a virtuous circle of employee engagement.

8. Higher employee retention and lower turnover rates

If you want to build a high-performing team, you need your employees to stick around. It's hard for teams to do their best work if employees are constantly cycling in and out. When long-standing employees leave, they take valuable knowledge and expertise with them. Plus, training new hires is a significant investment of time, energy, and resources.

An engaged, satisfied employee who's committed to their objectives is less likely to leave. So by improving employee retention rates, you'll have more engaged employees that make your team stronger, more experienced, and better equipped to hit targets.

{emphasize}

Conduct stay interviews regularly. Unlike exit interviews, stay interviews help you spot a disengaged employee before a valuable team member leaves. Every three months, ask your employees what's keeping them at the company and what they enjoy about their work.

{emphasize}

9. Strong ambassadorship and employer brand

A great employer brand is key to business success and it starts with high employee engagement. An engaged employee is more likely to vouch for their organization, and this ambassadorship is worth more than gold in today's labor market.

In fact, highly engaged organizations are usually raved about externally on job search platforms like Glassdoor and through word-of-mouth. So if you're looking to be on everyone's list of dream workplaces, you'll want to make sure your ambassadors are satisfied and motivated at all times. Employee engagement surveys are a great tool to keep these metrics in check.

{emphasize}

📏 Measure employee engagement by calculating your employee Net Promoter Score. This metric will paint a clear picture of your team's ambassadorship levels and their likeliness to promote your organization as a great place to work.

{emphasize}

10. Easier recruitment

It's no surprise that when your employer brand shines, HR's job becomes way easier in the recruitment process. Candidates want to be 100% sure when deciding to join an organization, so they're sure to scour online reviews or their networks for the scoop on what it's like to work at your company.

If your employee engagement is strong, you have nothing to fret about. In fact, your employees are probably doing a lot of the heavy lifting when it comes to attracting top talent simply by speaking highly about their positive experiences at work. And considering that 66% of candidates want to hear more from employees, you'll want to continue involving engaged employees throughout your recruitment.

How to improve employee engagement in your team

Your employee engagement strategy is a part of how you manage your team and doesn't have to add to your workload. Here are some engagement ideas you can try.

Make a healthy work-life balance non-negotiable

No matter how much employees love what they do, if they're overwhelmed or always on, they're going to burn out and disengage. Strong company culture will encourage a healthy work-life balance, which leads to a more engaged workforce. This is especially important on remote or distributed teams, where it's easy for the line between “work” and “home” to blur even more.  As a manager, you can make balance the norm on your team.

Set clear, firm expectations and boundaries around work communication, business hours, and taking time off. Openly encourage people to take breaks, book long weekends, and pursue their passions outside of work. Make sure that everyone feels comfortable logging off early if they've completed their work for the day.

{emphasize}

Ask the right questions to learn more about your team's well-being with these employee wellness surveys.

{emphasize}

Measure employee engagement, and talk about it

An employee engagement survey is a great way to collect information on how your people are feeling. Measuring employee engagement helps you spot any issues before they spiral into bigger problems. Officevibe's employee engagement software sends weekly surveys to every member of your team so you can keep a pulse on engagement levels.

Plus, you can collect employee feedback on an ongoing basis. From there, you can plan (and keep track of your notes) directly in the one-on-one software, so engagement is always a talking point.

Help your team set - and achieve - their goals

Your team will be more engaged when they feel like they're making meaningful contributions to collective business objectives.

First, help them understand those objectives. Then you can work together with them to set team goals that are aligned. Finally, set individual goals with team members so they have a clear path forward and something to strive toward.

You can set and track individual goals with each employee using Officevibe, and connect them to team goals in the app. Plus, it's easy to set smaller action items in every one-on-one, and then add it as a talking point for your next meeting so you're sure to follow up. This makes goal progression a part of every discussion, so employees feel supported and empowered.

Employee engagement leads to higher-performing teams

Employee engagement is a crucial part of high-performing teams. Now that you know the benefits of employee engagement, you can put these suggestions into practice – and watch your team thrive as a result.

Want to see where your team stand? Sign up for Officevibe and start measuring your employee engagement today.

Equip HR and managers with tools to engage, recognize, and drive performance.

Related content

Annual performance reviews have long been a cornerstone of workplace culture, but are they serving employees and organizations effectively? In a recent Workleap webinar, our expert panel tackled this question head-on, exploring why traditional performance reviews often fall short and what HR leaders can do to create a more effective, continuous performance management system.  

Featuring insights from Ricky Muddimer, Co-founder at Thinking Focus; Irina Mocanu, Senior HR Advisor at Workleap; and Brian O'Reilly, Performance Management Product Director at Workleap, the discussion left attendees with actionable takeaways for driving meaningful change in their organizations.

Here’s a recap of the key insights and strategies shared during the session.

Annual reviews may be the standard but they’re failing organizations (here’s why!)

Annual reviews have been the default approach for decades, but as workplace needs evolve, many organizations are questioning their effectiveness. During the webinar, we ran two polls to better understand how organizations approach performance management. The results were revealing:

What is your organization's performance review cadence?

  • 66% rely on formal annual reviews.
  • 16% use formal quarterly or monthly reviews.
  • 9% provide informal, ongoing real-time feedback.
  • 9% have no formal process at all.
Poll answers from our recent Workleap webinar, "Why annual reviews fail and how HR can prevent it"

 

How would you rate your current performance review process?

  • Only 3% said it’s "going really well."
  • 19% feel it’s working but could use minor tweaks.
  • 47% admitted it could be improved.
  • 31% said it needs a major overhaul.

Poll answers from our recent Workleap webinar, "Why annual reviews fail and how HR can prevent it"

These results highlight the problem: while annual reviews remain the standard, they often fail to deliver on their promise of fostering engagement and driving performance. “The annual review isn’t the issue in itself,” said Irina Mocanu. “The issue arises when it’s the only touchpoint for feedback all year long.”  

This gap leaves employees feeling blindsided and disengaged. When feedback is only delivered once a year, it’s impossible to address problems early or celebrate successes when they happen.

4 ways to improve your performance management approach

If annual reviews are just one piece of the puzzle, what does an effective performance management system look like? During the discussion, the panel outlined four foundational principles:  

1. Create a regular rhythm of feedback

Regular check-ins between managers and employees are critical for keeping communication lines open. These touchpoints prevent surprises during formal reviews and allow managers to address issues early. Ricky Muddimer emphasized that the frequency of these check-ins should depend on the organization.  

“Rhythm means addressing issues early  — when someone needs a little support, for example — and celebrating successes consistently. Whether it’s daily, weekly, or bi-weekly, find a cadence that works for your team,” he says. “It’s important to do a sense check of how your people are doing so there are no surprises come the annual review”  

2. Establish a compelling "why”

Performance management should feel valuable for everyone involved. As Ricky explained, “When managers and employees view performance management as an opportunity for growth and connection, it becomes something they actively want to participate in.” Employees want to know their managers are invested in their development, and managers need to see these conversations as opportunities to build stronger teams.

3. Keep it simple

Performance management often gets bogged down by administrative tasks and bureaucracy. But the focus should always be on people. Ricky put it best: “Your performance management approach has to be simple and easy to use. It must prioritize people over the process.” Simplicity ensures managers and employees can spend their energy on meaningful conversations, not paperwork.

4. Monitor your approach

A great performance management system isn’t a one-and-done implementation — it requires continuous refinement. As Irina emphasized, “Monitor what works, what doesn’t work, and adapt. If you stop, in three years, you’ll realize your performance management system is out of date.”  

To keep processes relevant and effective, HR teams should regularly assess their approach, gather feedback from managers and employees, and make small, incremental improvements rather than waiting for major overhauls.

Overcoming barriers to continuous feedback

Transitioning from annual reviews to a more continuous feedback model isn’t easy, but the benefits are undeniable. The panel shared their thoughts on the most common challenges organizations face — and how to overcome them.  

Cultural shifts take time

Implementing a new performance management system often requires a cultural transformation. The panelists encouraged HR leaders to be patient with this process: “Start small and implement changes incrementally rather than overhauling the entire system at once. Progress, not perfection, should be the goal.” By starting with small wins, organizations can gradually build a foundation for larger changes.  

Managers need support

One of the biggest barriers to continuous feedback is managers’ reluctance to have difficult conversations — and the HR leaders agreed wholeheartedly in the webinar chat.  

“Often managers aren’t comfortable/haven’t had enough training [on how to have] difficult conversations and giving and receiving feedback,” one attendee shared. “The problem is everything in training sounds great until it has to come out of your own mouth,” said another HR leader.  

To help managers build confidence in performance conversations, organizations need to reinforce training with ongoing support and accountability. As Irina and Ricky pointed out, training alone isn’t enough — HR leaders need to check in with managers regularly to understand their challenges and ensure feedback is meaningful and actionable.  

One approach is setting clear expectations, like Amazon’s leadership principles, which define how managers should foster high-performing teams. Another is directly evaluating managers on how well they implement continuous feedback and whether their team is high-performing. Ultimately, driving this cultural shift requires not only equipping managers but also empowering employees to take ownership of their performance and feedback.  

Prioritizing continuous feedback requires ongoing effort

Many managers, especially leader do-ers juggling multiple roles, struggle to make time for regular check-ins. Day-to-day operations often take priority, making structured performance conversations an afterthought. However, avoiding these discussions can lead to bigger issues down the line.

Managers already spend time addressing problems caused by a lack of clarity. Instead of reacting to issues, a proactive approach — setting clear expectations and providing regular feedback — prevents problems from escalating. Organizations that prioritize frequent check-ins see fewer performance gaps and build stronger, more engaged teams.  

How technology can help

Technology has become an essential tool for streamlining performance management and reducing administrative burdens. Brian O’Reilly shared how Workleap’s tools are designed to make performance management easier and more impactful.  

“Having a central spot to document one-on-ones and goals ensures no progress gets lost or forgotten,” Brian explained. Tools that centralize feedback and provide insights — both quantitative and qualitative — make it easier for managers to focus on meaningful conversations.  

AI also plays a role in enhancing performance management. “One of the major issues of the annual review model is recency bias,” Brian said. “AI, in conjunction with using the right tools and having access to the right performance insights, can help give managers extra context and cognitive load.” This allows managers to consider an employee’s entire body of work rather than focusing on recent events.

Voices from the webinar chat

Throughout the webinar, attendees actively engaged in the discussion, sharing their own challenges and perspectives on performance management. Their insights reinforced the importance of consistency, effective feedback, and balancing accountability with empathy. Here are a few standout comments that resonated:  

  • On leaders being consistent: “My mantra has always been: be fair and consistent in all you do and who you interact with. That goes a long way.”
  • On feedback as an opportunity: “We need to teach people how to have difficult conversations, not just conversations. Start with the positive and position feedback as an opportunity for growth.”
  • On balancing humanity with performance: “There are ways to ensure that people understand they are valued and that it’s human not to be perfect. That notwithstanding, we need to be honest — in strict behavioral terms — about areas of improvement.”

These comments reflect the shared challenges and aspirations of HR leaders striving to make performance management more human and effective. Kick off your performance revamp with these key takeaways  Bringing all these insights together, our panelists shared essential takeaways for HR leaders looking to transition from outdated performance reviews to a more continuous, human-centered approach:  

  1. Redefine performance: Start by defining what performance means in your organization. At Workleap, we focus on two dimensions: behaviors (e.g., embracing change, innovation) and accomplishments (e.g., the impact of work). “Defining performance criteria that align with your culture is essential,” Irina said.
  1. Integrate feedback into existing rituals: Reinforcing continuous feedback doesn’t mean reinventing the wheel. "When you embed continuous feedback sharing into existing ways of working, it becomes a much more natural process and it’s much easier for leaders to build this reflex,” says Irina.
  1. Engage employees and managers: Equip managers with the tools, training, and support they need to have meaningful conversations and empower employees to take ownership of their own growth. It’s important to constantly remind them of your “why,” so they can feel accountable.
  1. Refine and adapt: Gather feedback after implementation to refine the process. As Ricky noted, “This is about progress, not perfection. Set incremental goals and adjust as needed.”

Want to dive deeper? Catch the full conversation and get expert insights on how to transform performance management

The insights shared during this webinar are just the beginning. To hear more about how to navigate cultural shifts, leverage technology, and foster a culture of continuous feedback, watch the full recording.  Transforming performance management isn’t easy, but the rewards — increased engagement, better alignment, and stronger teams — are well worth the effort.  

When you hear "performance review," what comes to mind? As a manager, do you think of it as a once-a-year task that's just part of your checklist? Or perhaps, do you think of it as a laborious process with no clearly useful output?

Rest assured; the performance review process can be utilized strategically and absolutely be done in a way that is structured, effective, and impactful.

In this article, you'll find your ultimate guide to employee performance reviews. We'll walk you through the essential steps involved in conducting effective performance reviews and provide guidance on what a successful review should look like — before, during, and after. When done right, they can contribute to employee growth, development, and higher business performance.

What is an employee performance review?

Let's first cover the basics. At its core, a performance review is a structured process that evaluates an individual's job performance and provides constructive feedback. Performance reviews are an essential part of the performance management process and support goal-setting, monitoring, and accountability.

Traditionally, a performance review has been an annual event, but in the modern workplace, with continuous performance management gaining traction, performance reviews have taken different forms — be it regular check-ins or ongoing feedback to foster employee development and improvement. In this new era of performance management, managers become more like coaches who empower their employees to reach their full potential.

👉 Find our guide to the modern way of conducting performance reviews with insightful tips and case studies to get inspired.

Why are employee performance reviews important?

Performance reviews don't have to be complicated, just as long as you don't undervalue their power either. They offer numerous benefits for both individuals and organizations at every level. They:

  • Improve communication
  • Identify strengths and weaknesses
  • Facilitate goal setting
  • Enhance employee engagement
  • Strengthen employee-manager relationships

By investing in performance reviews, you pave the way for continuous improvement and foster a more positive work culture.

Key elements of an effective performance review

Performance reviews play a crucial role in driving employee growth and development while contributing to higher business performance. To conduct impactful performance reviews, it's essential to incorporate key elements that foster a supportive, collaborative, and ultimately thriving environment.

Here are the key elements of an effective performance review process:

Frequent review cycles

Break away from the anxiety-inducing annual performance review and normalize conversations about performance. Implementing regular review cycles allows for ongoing feedback, ensuring employees stay on track and have the opportunity to grow continuously.

For example, quarterly or monthly check-ins provide timely feedback and help address any performance gaps promptly.

Two-way conversations

Performance reviews shouldn't be one-sided. By involving employees in two-way conversations, you demonstrate that their opinions and insights are valued, fostering a sense of ownership and engagement.

Encourage open dialogue and create a space for employees to share their perspectives, offer suggestions, and actively participate in the review process.

Focused on improvements

Modern performance reviews shift the focus from dwelling on past mistakes to emphasizing growth and development. By adopting a forward-thinking approach, you inspire a growth mindset and create a culture that supports continuous learning and development.

Encourage employees to reflect on their experiences, learn from them, and set goals for improvement.

Transparent and honest

Transparency and honesty are paramount in fostering trust between managers and employees. Establish clear communication channels to ensure employees understand how their performance is being assessed and how feedback will be provided.

Transparency also involves clearly communicating the evaluation criteria and ensuring employees have access to the necessary resources for improvement.

Fair and objective review process

A fair and objective review process is essential for employee morale and engagement. Use standardized evaluation criteria that are consistently applied across the organization. This helps maintain fairness and ensures that employees feel their performance is evaluated on an equal basis.

Objective evaluations foster trust and provide employees with a sense of confidence in the review process.

How to prepare for a performance review

To conduct an effective performance review, managers need to prepare in advance. Here are the key prep steps to get ready:

1. Align on performance evaluation criteria

Performance evaluations require a clear understanding of the criteria and metrics used to assess employee performance. It's essential for managers and employees to have a shared understanding of what constitutes good or poor performance.

For example, you might establish criteria such as meeting project deadlines, demonstrating strong communication skills, or displaying proactive problem-solving abilities. By aligning these criteria, you can ensure fairness and consistency in your evaluations.

2. Gather employee data and examples

To provide meaningful performance feedback, gather relevant qualitative and quantitative data, as well as examples that illustrate an employee's performance.

There are different methods of performance evaluation, all of which can be pooled to build a comprehensive performance picture. Qualitative data can come from employee self-evaluation, peer reviews, or supervisor assessments. Whereas quantitative data can come from sales figures or other productivity metrics.

By collecting a range of data and examples, you'll have a well-rounded view of the employee's performance that considers all factors — not just numbers.

3. Use a performance review template

Templates exist for a reason. They provide a pre-existing structure from which you can build on and customize. They also save you time!

Performance review templates provide a set of targeted questions that guide you through each aspect of the review, ensuring you cover all relevant areas with your employee. Using a template saves prep time and helps maintain consistency across each team member's evaluation. It also ensures that no important topics or questions are overlooked.

Officevibe includes performance review templates designed to make the review process even more streamlined, effective, and data-driven.

A preview of Officevibe's employee performance review template
Use performance review templates in Officevibe.

4. Prepare a meeting agenda

Before the performance review meeting, create a detailed agenda to guide the discussion. Outline the specific topics you want to cover, such as achievements, areas for improvement, and future goals. Consider including specific examples or projects to discuss during the meeting.

Having a clear agenda helps keep the conversation focused and ensures that all important points are addressed. It also shows employees that you have taken the time to prepare and value their performance.

👀 Check out our one-on-one meeting agendas that cover most manager-employee scenarios, including performance reviews, performance improvement plans, career development, and more!

5. Schedule your performance review meeting

Set a date and time for the performance review that works for both you and the employee. Choose a time when you can give your undivided attention and create a comfortable environment for open and honest conversation.

Avoid scheduling the review during particularly busy or stressful periods to ensure you can devote sufficient time and attention to the discussion. Scheduling the meeting in advance demonstrates your commitment to the employee's growth and development.

By following these steps and adequately preparing for the performance review, you set the stage for a productive and valuable discussion with your employees. Effective preparation ensures that you have the necessary information, structure, and focus to provide meaningful feedback and pave the way for future growth.

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How to conduct an employee performance review

Now that you're prepared, let's explore how to conduct an effective performance review. This is the time to engage in a productive conversation that supports employee growth and development.

The following guidelines provide the performance review framework you need to promote employee development, foster positive relationships, and drive organizational success:

1. Set a positive and constructive tone during the review

Approach the review with a supportive and coaching mindset. It's critical to create a safe space for open dialogue, which fosters collaboration much better than when employees don't feel like they have input. Remember that the goal is to empower employees in their future performance by emphasizing what they are capable of rather than reinforcing what they may not be doing well enough.

2. Share positive feedback and recognition

Similar to the compliment sandwich approach, balancing positive feedback with areas for improvement can go a long way. Make sure to share your own feedback and words of acknowledgment to strengthen your manager-employee bond. Additionally, pass on any feedback you received from other colleagues or leaders, which could help the employee feel valued and appreciated.

3. Offer constructive feedback

Discuss any performance challenges or areas of underperformance directly and constructively. By framing things in a constructive way and using specific examples to illustrate your points, you provide more actionable solutions for growth. Navigate difficult conversations with empathy and a focus on finding solutions together.

Need the inspiration to find high-quality feedback? Here are 22 constructive feedback examples and tips to help you deliver feedback that gets results.

4. Give specific examples

By providing specific examples, you can ensure clarity and facilitate productive discussions. Make sure to back up your feedback with concrete examples to make it more impactful and actionable. Contextualizing feedback with current and past performance examples, helps employees understand the specific behaviors or situations that need improvement or reinforcement.

5. Address performance challenges

During the review, address any performance challenges or areas of underperformance directly and constructively. There are many ways to approach poor work performance issues, just remember to lead these conversations with empathy and a focus on finding solutions. By addressing challenges head-on, you can work together with the employee to identify strategies for improvement and growth.

Granted, some conversations are a little bit more difficult than others. Hey, managers are only human. Read our difficult conversation tips to ensure the message (and solution) isn't getting lost in translation.

6. Listen actively

During the performance review, practice active listening to show genuine interest in the employee's perspective. Pay attention to their thoughts, concerns, and aspirations. By actively listening, you create an environment where employees feel heard and valued, fostering trust and engagement.

Active listening is definitely one of those skills that can help anyone in all areas of life — not just at work! So read our tips on how to practice the art of good listening.

7. Define the next steps

Collaborate with the employee to identify actionable next steps. This could look like:

  • Creating a development plan
  • Setting clear goals for improvement
  • Adjust existing performance targets as necessary

By involving employees in the process of defining the next steps, you empower them to take ownership of their growth and development.

Remember, conducting a performance review is not just a one-time event but part of an ongoing performance management system. Ultimately, ensuring continuous feedback and regular check-ins throughout the year helps set, align, and adjust employee goals when appropriate, which contributes to employee growth and success.

What to do after a performance review

The performance review doesn't end with the meeting. Here's what you can do to ensure continuous improvement and growth.

1. Follow up on the next steps

After the performance review, it's crucial to stay involved and provide ongoing support. Follow up on the next steps that were identified during the review. Schedule frequent one-on-ones and other touchpoints to monitor progress and measure results. This demonstrates your commitment to the employee's growth and helps ensure they are on the right track toward achieving their goals.

🤔 Not sure how often to schedule one-on-ones? Find your best formula for one-on-one frequency.

For example, if one of the next steps identified during the review was for the employee to improve their time management skills, you can schedule a follow-up meeting a month later to discuss their progress. During this meeting, you can ask specific questions about their strategies for improving time management, inquire about any challenges they may have encountered, and provide additional guidance or resources if needed.

By following up on next steps, you show that you are invested in your employees' success and provide an opportunity for course correction or further development.

2. Keep the performance conversation going

Embrace the beauty of continuous performance cycles by conducting regular check-ins and one-on-one meetings. These ongoing conversations provide opportunities to discuss progress, address challenges, and provide timely feedback. By maintaining an open line of communication, you can support employees in their growth journey and ensure that performance remains a priority.

For example, you can schedule bi-weekly or monthly one-on-one meetings with your employees to discuss their ongoing projects, address any obstacles they may be facing, and provide guidance or feedback. These meetings create a space for employees to share their achievements, seek guidance on their work, and discuss any new challenges that may have arisen, to assess at your next employee performance review. By keeping the performance conversation going, you demonstrate your commitment to their development and create an environment where continuous improvement is encouraged.

Officevibe supports continuous performance management. This feature provides tools and resources to facilitate ongoing feedback, goal tracking, and one-on-one meetings!

Effective performance review phrases to use in your next review

Crafting meaningful feedback is key to a successful performance review. Here are some examples of performance review phrases, be them appraisals or constructive, to inspire your next review:

  • Creativity: "Your innovative thinking has led to impressive solutions, pushing our team to new heights."
  • Communication: "Your clear and concise communication style has greatly improved team collaboration and project outcomes."
  • Accountability: "You consistently take ownership of your responsibilities, delivering results with a high level of accountability."
  • Productivity: "Your exceptional time management skills and efficient work habits have significantly increased productivity within the team."
  • Collaboration: "Your collaborative approach fosters a positive team environment, encouraging open communication and idea-sharing."
  • Coaching: "Your dedication to mentoring team members has empowered them to grow and excel in their roles."
  • Areas of improvement: "To further enhance your performance, focusing on improving your presentation skills will help you engage stakeholders more effectively."
  • Problem-solving: "Your analytical thinking and resourcefulness have consistently resulted in creative problem-solving and successful outcomes."

Again, following up on any performance feedback with specific examples will make the feedback itself more impactful by giving it context. This will also show the employee you gave the feedback thought. For example, you could pair praise about problem-solving with something along the lines of: "Last month, when we had an issue with project X, you managed to fix this by doing A, B, and C and that ensured we could deliver on time! Thank you."

⭐️ Find more examples of employee feedback that creates an impact, especially relating to more sensitive issues like the need for additional training or failing to meet deadlines, and best practices for delivering them.

Use performance management software

Theoretically, you can master your performance review approach all on your own. Logistically, however, there are ways you can make the entire performance management process infinitely easier for yourself (and your employees).

Performance management software like Officevibe turns the review process into a fun and dynamic aspect of the employee experience. With data-driven features such as goal setting, continuous feedback, and performance tracking, it simplifies, streamlines, and enhances the entire performance review process, making it fair, efficient, and engaging for both managers and employees.

By utilizing performance review software, you can maximize the benefits of performance management, foster employee development, and cultivate a positive work culture.

Elevate growth, engagement, and success with Officevibe

Mastering the art of employee performance reviews is essential for managers looking to drive growth, engagement, and success within their teams. By following the key steps outlined in this guide, you can conduct effective performance reviews that inspire improvement, empower employees, and contribute to overall organizational success.

Remember, performance reviews should be a collaborative and continuous process that prioritizes growth, feedback, and open communication. Embrace the opportunity to support your employees' development and create a culture of excellence!

MONTRÉAL — Nov. 25, 2024 — Workleap, a leading Canadian software company behind products that empower 20,000 companies in more than 100 countries to build better employee experiences, announces its fall platform release introducing new solutions and integrated features into an all-in-one simple-to-use platform. This release marks a new milestone in Workleap’s ongoing commitment to transform the employee experience by empowering HR leaders to drive organizational performance and achieve business goals.

Workleap’s comprehensive platform helps HR lead organizations to thrive in the modern setting of hybrid, remote, and distributed work environments. The consolidated solution for understanding employee engagement, driving performance, and developing employees is the best add-on to your existing HRIS and HR technology, allowing companies to add simple experiences across the employee lifecycle. Bringing these functions together in one platform, Workleap enables HR professionals to create a more responsive, agile and employee-centric work environment.

What's New

  • Workleap Performance streamlines performance management reviews and enables HR teams to guide managers to provide meaningful feedback, align teams with business goals, and easily track progress—all in one place.
  • Workleap Pingboard, an intuitive org-chart, visualization, and company building solution, will be integrated within the Workleap platform before the end of the year.
  • Integrated tools to help HR: Easily visualize employee engagement data within your org chart, streamline onboarding and learning workflows, accelerate content creation with AI designed for HR, and launch custom surveys across the employee journey.
  • Unmatched value: Game-changing bundled pricing lowers the barrier for HR teams of any size to enhance the employee experience.

Why It Matters

Hybrid work has completely reshaped the role of HR. It’s no longer just about managing employees—it’s about building the right frameworks, fostering authentic connections, and leveraging tools that drive meaningful outcomes,” said Simon De Baene, Co-founder and CEO of Workleap. “At Workleap, our mission is clear: make work simpler. The Workleap platform brings together the tools HR teams and leaders need to focus on what matters most—creating workplaces where people feel supported, connected, and empowered to grow. By continuing to invest in our platform, we’re accelerating innovation with solutions like Workleap Performance—designed to be simple, effective, and built to keep HR and leaders ahead as the future of work evolves.”

To learn more about Workleap’s employee experience platform, visit workleap.com.

About Workleap
Workleap is the best add-on to your HRIS to build better employee experiences. The all-in-one Workleap platform empowers organizations to make work simpler by unifying onboarding, engagement, performance, and development —in one platform.

Workleap is a Montréal, Canada-based company building the operating system for hybrid work—unifying the experience to streamline talent management and scale productivity tools across 20,000 companies in more than 100 countries.

Media Contact
Jaclyn Pullen
PANBlast for Workleap
workleap@panblastpr.com