Employee Engagement
10M

Why is employee experience important?

Published on 
May 4, 2023

A positive employee experience (EX) is the beating heart of business performance. Successful companies need dedicated, productive employees to ensure better business outcomes. And those employees need their leaders to value their efforts and nurture a constructive work environment.

If you're not sure where your company stands, take a moment to reflect. Do your employees feel valued, supported, and motivated to do their best work? Or are they just going through the motions, counting down the hours until they can clock out?

As an HR leader, you know the former is worth its weight in gold. But it can sometimes be difficult to make your case for EX resources when other leaders don't fully understand why employee experience matters.

That's where we come in as your trusted sidekick. We put together a list of the top eight reasons why companies should place more importance on employee experience and how to reach the EX pinnacle.

What is employee experience?

We're witnessing big shifts in the labor market and global economic landscape this year. With this, top talent in various fields realize they have more freedom than they thought regarding job choice. To attract and retain employees, managers and team leaders play a critical role in prioritizing employee experience.

So, what exactly is employee experience? Put simply, employee experience encompasses every interaction a person has with their organization at every stage of their employee lifecycle. From the initial hiring process to their exit interview, an employee's experience shapes their perception of your company and may reflect the current condition of your work environment.

Several factors make a great employee experience, including physical space, company culture, learning and development opportunities, relationships with their managers, and more. By investing in the employee journey, you can set your team up to succeed at critical moments.

Identify important moments during employee experiences that affect your people and business outcomes by learning to map the employee experience journey (psst: we included a template and example to help you out).

8 Reasons why employee experience is important

Creating a positive employee experience requires time and effort, but the payoff and employee engagement you'll get out of it are worth it. Statistics on employee experience show that an engaged workforce can lead to increased productivity, improved employee well-being, and superior customer experience. Unsurprisingly, your business benefits from having happy employees!

Read on to learn why employee experience is important for your company's growth and long-term success.

1. Attracts top talent

People are thinking more carefully than ever about how they choose employment. Above average salaries might attract some job seekers, but it'll no longer be the main reason top talent flock to your door. Instead, many individuals will look to employee satisfaction rates, company culture, and ambassadorship levels to determine whether a role at your company is right for them.

In short, a great employee experience gives you an edge in the job market by making your organization stand out in a sea of employers, and by retaining these new hires in the long run. More on that later!

2. Boosts productivity

Individual and team productivity are top of mind for leaders these days. Organizations need their employees to do great work and contribute towards broader goals. But productivity shouldn't be taken for granted. Leaders and organizations play a big role in helping employees be and stay productive.

Fostering a constructive employee experience is key. It motivates employees to do their best work, leading to improved individual performance. And it doesn't stop there. A solid employee experience also makes collaboration flourish, resulting in better communication and shared problem solving — both of which do wonders for improving team productivity.

3. Fosters great team relationships

Employee experiences founded in trust, communication, respect, and recognition are the most conducive to sparking positive relationships at work. When you start prioritizing these 4 pillars of employee relations within your employee experience, you'll unlock a slew of benefits for each team and the company as a whole.

Employees who trust each other and work well together are more likely to address challenges more effectively and bounce back from setbacks more quickly. They're also better at generating creative ideas collectively and finding innovative solutions together.

Great employee experiences create 5-star teams that are resilient and adaptable, and drive everyone around them forward.

4. Improves employee well-being

HR leaders everywhere recognize that most employees' mental health influences if and how they show up to work. However, well-being in the workplace is increasingly difficult to manage because of how entangled work currently is in our personal lives. Most of us still work in the same environment where we eat, sleep, relax, and spend time with our loved ones. Because of this, organizations need to be extra intentional about how they address wellness in their employee experience.

Companies that prioritize flexibility, psychological safety, work-life balance, and employee autonomy, for example, are more likely to have a workforce full of employees who feel their best and give their best at work. That's because these key employee experience factors give employees the support they need to flourish creatively and feel more engaged in their work.

😓 Has someone on your team fallen victim to burnout? Help get them back on track and protect the rest of the team's well-being with a psychologist's tips on how to manage burnout.

5. Improves customer satisfaction

Have you ever been served by a waiter who was clearly having a bad day? We can bet their demeanor or subpar customer service clouded your experience. Even when it's controlled, it's hard for people to avoid letting their mood impact their behaviors. It's simply human nature.

The same way an unhappy waiter can kill the vibe of an otherwise good dinner, disengaged and unhappy employees can negatively impact a paying customer's satisfaction. And when the customer is dissatisfied, the business suffers.

On the flip side, engaged employees who have favorable experiences at work are more likely to produce better quality work, foster better client relationships, and positively represent your brand. Like a domino effect, you can ensure a better customer experience by collaborating with your team at every step in the employee journey.

[ov_cta id="5118841"]

6. Strengthens employer brand

Businesses these days have to consider the possibility of employees speaking negatively about them online. We know this is stressful, but on the bright side, the reverse is also true. Accounts detailing positive experiences at your organization can establish a good reputation for your brand and encourage others to join you. This applies to word-of-mouth, too! Happy, engaged employees are more likely to speak highly of their workplaces and strengthen their employer brands.

Look at these two online reviews for instance:

⭐️⭐️⭐️⭐️ Great team culture and lots of room for growth

I've been working at Zebra company for 3 years now, and I'm still loving my experience! I have a great relationship with my managers, and they're always looking to improve collaboration and communication at work. Since joining, I've also had the chance to take on a new role, do stretch assignments, and sign up for relevant trainings.

⭐️⭐️ Long hours and lack of direction from leaders

I used to love working at Tiger company, but lately the management team is super unorganized and it feels like no one is aligned. There's always a false sense of urgency, which makes employees work longer hours than necessary. I don't feel valued and my work-life balance is terrible.

Now, which of these two describes a better employee experience, and which do you think is more likely to boost your employer brand? Case closed.

7. Increases employee retention

When you create a fantastic employee experience, you send the message that you're invested in every employee's journey. You're telling your team that you want them at your side, and not just for the time being. If you're figuring out how to improve employee retention, you can start by tackling two great places in the employee experience: feedback and career advancement options.

More honest feedback from your team will give you the insights you need to make adjustments moving forward, so you can create a virtuous cycle of employee experience and retention improvement. Likewise, giving your employees the opportunity to learn new skills and consider internal mobility shows that you're invested in their future. As a result, they'll feel more invested in the company and their position. And they'll be more likely to see a future with your organization in it.

Gather valuable feedback to tackle retention at its core with these 20 employee retention survey questions.

8. Decreases absenteeism and presenteeism

In most cases, a positive employee experience also leads to less absenteeism and presenteeism at work. In other words, employees are less likely to take time off for reasons other than vacation, and those who are present are less likely to be mentally checked out. That's because employees who feel fulfilled at work and genuinely enjoy their workplace have a stronger sense of commitment and motivation towards their work.

When employees are absent from work, they can miss important tasks, meetings, or deadlines, which can cause delays and avoidable added stress for their colleagues. Similarly, when employees are present, but mentally elsewhere — usually due to stress, poor mental health, or lack of motivation — the team's global productivity and employee engagement levels can take a hit.

In the end, everyone wins when you create a supportive and engaging work environment.

What is a positive employee experience?

A positive employee experience is one that people feel a strong sense of connection to and satisfaction with. Looking at it in more detail, the employee experience is shaped by 11 key pillars, each of which should be given care and attention.

Identifying where you stand with each pillar is the first step towards building a positive employee experience. However, as workplace expectations change, it's important to regularly reassess what your employees need.

Fine-tuning your approach will take some practice, but in the meantime, here are some factors to consider:

  • Tools and office space: Do your employees have everything they need to do their jobs well? This includes technology, support from managers and team members, and adequate resources. Likewise, having both private and collaboration spaces provides employees with appropriate work areas for team projects and individual tasks.
  • Company culture: Whether in their personal lives or at work, everyone wants to feel included, respected, and valued. This is why it's necessary to build an organizational culture that's human-focused and able to adapt to individual needs. Establishing a positive workplace culture is also where tools like team-building activities come in.
  • Communication: Frequent, open communication organically develops trust between team members and managers. Even better, it ensures that everyone is on the same page and inspires more productive and effective collaboration.

Ultimately, the objective of improving employee experience is to engage people and provide them with the psychological safety they need to voice thoughts and feelings. Taking an iterative approach to employee experience rooted in feedback and communication is the best way to keep employees happy and the business thriving for good.

How to improve the employee experience

Struggling to improve employee experience at your organization? Don't worry. Below, we've compiled a list of simple ways you can get the ball rolling.

Create stellar onboarding

One of the easiest ways to improve employee experience from the jump is to create a stellar onboarding process.

A person's onboarding is their official introduction to their new work environment and colleagues. It sets the tone for the rest of their tenure at a company, so it's important to make those first moments count.

Remember that the onboarding process should smoothly integrate new hires into your midst. This means helping them bond with the team, personalizing their onboarding activities, and introducing them to your company's values.

Ensure role clarity

A common concern for employees is not having a clear understanding of their roles. It drives confusion, decreases accountability, and demotivates employees. That's why clearly identifying each team member's role and responsibilities is key to improving your employee experience.

Once each employee understands their role, you can then set goals they can work to achieve. It's helpful to have one-on-one meetings whenever possible to clarify roles and responsibilities.

Use employee feedback loops

By creating a regular feedback loop, you can better understand how employees feel about their work environment, job responsibilities, relationships with peers and managers, and company culture. In other words, you can uncover their needs and they can understand your expectations.

Feedback loops help spot areas of improvement on all ends, giving employees, managers, and HR leaders tools to enhance the over experience at work.

Make employee well-being a priority

It's a simple fact that happy people perform better and have higher employee satisfaction. On the other hand, elevated anxiety, burnout, and stress in the workplace can be a recipe for disengagement.

To improve the employee experience, you'll need to get a clear sense of your team's well-being. The best way to do so is to conduct an employee wellness survey.

These employee surveys open up a line of communication between you and your team members and give you the insights you need to make necessary changes. Depending on the answers you receive, these changes could be implementing more flexible scheduling, moving to a hybrid work model, or expanding employee benefits.

Make time for team building and strengthening connections

For communication to be effective, it's necessary to establish a sense of trust between your employees and management.

Team-building exercises show your employees that you value their perspective and presence. At the same time, coworkers can form meaningful bonds, which lead to improved collaboration, communication, employee engagement, and overall productivity. When people feel a strong connection to their workplace, the employee experience naturally increases.

Trust is one of the most essential ingredients to a team's success. Make your team trust rock-solid with these 5 strategies to build trust and collaboration.

Start creating an outstanding employee experience

Investing time and effort in the employee experience is no longer optional for businesses that want to succeed in the modern world. As we outlined above, creating a well-rounded and carefully crafted employee experience can help companies attract top talent, increase employee performance, and keep clients happy, among many other benefits.

As an HR leader, you play a critical role in shaping the employee experience at your organization. The best practices we shared are a great starter pack to initiate your employee experience strategy. And if you need a tool to help you along the way, Officevibe's intuitive employee experience platform can measure your team's employee engagement and show you how to take action to improve it.

You got this! All you need to do is start. Your team and business will thank you for it.

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

What's in this article
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A positive employee experience (EX) is the beating heart of business performance. Successful companies need dedicated, productive employees to ensure better business outcomes. And those employees need their leaders to value their efforts and nurture a constructive work environment.

If you're not sure where your company stands, take a moment to reflect. Do your employees feel valued, supported, and motivated to do their best work? Or are they just going through the motions, counting down the hours until they can clock out?

As an HR leader, you know the former is worth its weight in gold. But it can sometimes be difficult to make your case for EX resources when other leaders don't fully understand why employee experience matters.

That's where we come in as your trusted sidekick. We put together a list of the top eight reasons why companies should place more importance on employee experience and how to reach the EX pinnacle.

What is employee experience?

We're witnessing big shifts in the labor market and global economic landscape this year. With this, top talent in various fields realize they have more freedom than they thought regarding job choice. To attract and retain employees, managers and team leaders play a critical role in prioritizing employee experience.

So, what exactly is employee experience? Put simply, employee experience encompasses every interaction a person has with their organization at every stage of their employee lifecycle. From the initial hiring process to their exit interview, an employee's experience shapes their perception of your company and may reflect the current condition of your work environment.

Several factors make a great employee experience, including physical space, company culture, learning and development opportunities, relationships with their managers, and more. By investing in the employee journey, you can set your team up to succeed at critical moments.

Identify important moments during employee experiences that affect your people and business outcomes by learning to map the employee experience journey (psst: we included a template and example to help you out).

8 Reasons why employee experience is important

Creating a positive employee experience requires time and effort, but the payoff and employee engagement you'll get out of it are worth it. Statistics on employee experience show that an engaged workforce can lead to increased productivity, improved employee well-being, and superior customer experience. Unsurprisingly, your business benefits from having happy employees!

Read on to learn why employee experience is important for your company's growth and long-term success.

1. Attracts top talent

People are thinking more carefully than ever about how they choose employment. Above average salaries might attract some job seekers, but it'll no longer be the main reason top talent flock to your door. Instead, many individuals will look to employee satisfaction rates, company culture, and ambassadorship levels to determine whether a role at your company is right for them.

In short, a great employee experience gives you an edge in the job market by making your organization stand out in a sea of employers, and by retaining these new hires in the long run. More on that later!

2. Boosts productivity

Individual and team productivity are top of mind for leaders these days. Organizations need their employees to do great work and contribute towards broader goals. But productivity shouldn't be taken for granted. Leaders and organizations play a big role in helping employees be and stay productive.

Fostering a constructive employee experience is key. It motivates employees to do their best work, leading to improved individual performance. And it doesn't stop there. A solid employee experience also makes collaboration flourish, resulting in better communication and shared problem solving — both of which do wonders for improving team productivity.

3. Fosters great team relationships

Employee experiences founded in trust, communication, respect, and recognition are the most conducive to sparking positive relationships at work. When you start prioritizing these 4 pillars of employee relations within your employee experience, you'll unlock a slew of benefits for each team and the company as a whole.

Employees who trust each other and work well together are more likely to address challenges more effectively and bounce back from setbacks more quickly. They're also better at generating creative ideas collectively and finding innovative solutions together.

Great employee experiences create 5-star teams that are resilient and adaptable, and drive everyone around them forward.

4. Improves employee well-being

HR leaders everywhere recognize that most employees' mental health influences if and how they show up to work. However, well-being in the workplace is increasingly difficult to manage because of how entangled work currently is in our personal lives. Most of us still work in the same environment where we eat, sleep, relax, and spend time with our loved ones. Because of this, organizations need to be extra intentional about how they address wellness in their employee experience.

Companies that prioritize flexibility, psychological safety, work-life balance, and employee autonomy, for example, are more likely to have a workforce full of employees who feel their best and give their best at work. That's because these key employee experience factors give employees the support they need to flourish creatively and feel more engaged in their work.

😓 Has someone on your team fallen victim to burnout? Help get them back on track and protect the rest of the team's well-being with a psychologist's tips on how to manage burnout.

5. Improves customer satisfaction

Have you ever been served by a waiter who was clearly having a bad day? We can bet their demeanor or subpar customer service clouded your experience. Even when it's controlled, it's hard for people to avoid letting their mood impact their behaviors. It's simply human nature.

The same way an unhappy waiter can kill the vibe of an otherwise good dinner, disengaged and unhappy employees can negatively impact a paying customer's satisfaction. And when the customer is dissatisfied, the business suffers.

On the flip side, engaged employees who have favorable experiences at work are more likely to produce better quality work, foster better client relationships, and positively represent your brand. Like a domino effect, you can ensure a better customer experience by collaborating with your team at every step in the employee journey.

[ov_cta id="5118841"]

6. Strengthens employer brand

Businesses these days have to consider the possibility of employees speaking negatively about them online. We know this is stressful, but on the bright side, the reverse is also true. Accounts detailing positive experiences at your organization can establish a good reputation for your brand and encourage others to join you. This applies to word-of-mouth, too! Happy, engaged employees are more likely to speak highly of their workplaces and strengthen their employer brands.

Look at these two online reviews for instance:

⭐️⭐️⭐️⭐️ Great team culture and lots of room for growth

I've been working at Zebra company for 3 years now, and I'm still loving my experience! I have a great relationship with my managers, and they're always looking to improve collaboration and communication at work. Since joining, I've also had the chance to take on a new role, do stretch assignments, and sign up for relevant trainings.

⭐️⭐️ Long hours and lack of direction from leaders

I used to love working at Tiger company, but lately the management team is super unorganized and it feels like no one is aligned. There's always a false sense of urgency, which makes employees work longer hours than necessary. I don't feel valued and my work-life balance is terrible.

Now, which of these two describes a better employee experience, and which do you think is more likely to boost your employer brand? Case closed.

7. Increases employee retention

When you create a fantastic employee experience, you send the message that you're invested in every employee's journey. You're telling your team that you want them at your side, and not just for the time being. If you're figuring out how to improve employee retention, you can start by tackling two great places in the employee experience: feedback and career advancement options.

More honest feedback from your team will give you the insights you need to make adjustments moving forward, so you can create a virtuous cycle of employee experience and retention improvement. Likewise, giving your employees the opportunity to learn new skills and consider internal mobility shows that you're invested in their future. As a result, they'll feel more invested in the company and their position. And they'll be more likely to see a future with your organization in it.

Gather valuable feedback to tackle retention at its core with these 20 employee retention survey questions.

8. Decreases absenteeism and presenteeism

In most cases, a positive employee experience also leads to less absenteeism and presenteeism at work. In other words, employees are less likely to take time off for reasons other than vacation, and those who are present are less likely to be mentally checked out. That's because employees who feel fulfilled at work and genuinely enjoy their workplace have a stronger sense of commitment and motivation towards their work.

When employees are absent from work, they can miss important tasks, meetings, or deadlines, which can cause delays and avoidable added stress for their colleagues. Similarly, when employees are present, but mentally elsewhere — usually due to stress, poor mental health, or lack of motivation — the team's global productivity and employee engagement levels can take a hit.

In the end, everyone wins when you create a supportive and engaging work environment.

What is a positive employee experience?

A positive employee experience is one that people feel a strong sense of connection to and satisfaction with. Looking at it in more detail, the employee experience is shaped by 11 key pillars, each of which should be given care and attention.

Identifying where you stand with each pillar is the first step towards building a positive employee experience. However, as workplace expectations change, it's important to regularly reassess what your employees need.

Fine-tuning your approach will take some practice, but in the meantime, here are some factors to consider:

  • Tools and office space: Do your employees have everything they need to do their jobs well? This includes technology, support from managers and team members, and adequate resources. Likewise, having both private and collaboration spaces provides employees with appropriate work areas for team projects and individual tasks.
  • Company culture: Whether in their personal lives or at work, everyone wants to feel included, respected, and valued. This is why it's necessary to build an organizational culture that's human-focused and able to adapt to individual needs. Establishing a positive workplace culture is also where tools like team-building activities come in.
  • Communication: Frequent, open communication organically develops trust between team members and managers. Even better, it ensures that everyone is on the same page and inspires more productive and effective collaboration.

Ultimately, the objective of improving employee experience is to engage people and provide them with the psychological safety they need to voice thoughts and feelings. Taking an iterative approach to employee experience rooted in feedback and communication is the best way to keep employees happy and the business thriving for good.

How to improve the employee experience

Struggling to improve employee experience at your organization? Don't worry. Below, we've compiled a list of simple ways you can get the ball rolling.

Create stellar onboarding

One of the easiest ways to improve employee experience from the jump is to create a stellar onboarding process.

A person's onboarding is their official introduction to their new work environment and colleagues. It sets the tone for the rest of their tenure at a company, so it's important to make those first moments count.

Remember that the onboarding process should smoothly integrate new hires into your midst. This means helping them bond with the team, personalizing their onboarding activities, and introducing them to your company's values.

Ensure role clarity

A common concern for employees is not having a clear understanding of their roles. It drives confusion, decreases accountability, and demotivates employees. That's why clearly identifying each team member's role and responsibilities is key to improving your employee experience.

Once each employee understands their role, you can then set goals they can work to achieve. It's helpful to have one-on-one meetings whenever possible to clarify roles and responsibilities.

Use employee feedback loops

By creating a regular feedback loop, you can better understand how employees feel about their work environment, job responsibilities, relationships with peers and managers, and company culture. In other words, you can uncover their needs and they can understand your expectations.

Feedback loops help spot areas of improvement on all ends, giving employees, managers, and HR leaders tools to enhance the over experience at work.

Make employee well-being a priority

It's a simple fact that happy people perform better and have higher employee satisfaction. On the other hand, elevated anxiety, burnout, and stress in the workplace can be a recipe for disengagement.

To improve the employee experience, you'll need to get a clear sense of your team's well-being. The best way to do so is to conduct an employee wellness survey.

These employee surveys open up a line of communication between you and your team members and give you the insights you need to make necessary changes. Depending on the answers you receive, these changes could be implementing more flexible scheduling, moving to a hybrid work model, or expanding employee benefits.

Make time for team building and strengthening connections

For communication to be effective, it's necessary to establish a sense of trust between your employees and management.

Team-building exercises show your employees that you value their perspective and presence. At the same time, coworkers can form meaningful bonds, which lead to improved collaboration, communication, employee engagement, and overall productivity. When people feel a strong connection to their workplace, the employee experience naturally increases.

Trust is one of the most essential ingredients to a team's success. Make your team trust rock-solid with these 5 strategies to build trust and collaboration.

Start creating an outstanding employee experience

Investing time and effort in the employee experience is no longer optional for businesses that want to succeed in the modern world. As we outlined above, creating a well-rounded and carefully crafted employee experience can help companies attract top talent, increase employee performance, and keep clients happy, among many other benefits.

As an HR leader, you play a critical role in shaping the employee experience at your organization. The best practices we shared are a great starter pack to initiate your employee experience strategy. And if you need a tool to help you along the way, Officevibe's intuitive employee experience platform can measure your team's employee engagement and show you how to take action to improve it.

You got this! All you need to do is start. Your team and business will thank you for it.

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