Performance Improvement Boosts Employee Engagement

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Recognizing and rewarding excellence: it’s on every list of ways in which to retain key employees. Because engaged employees stay longer at a company, we know that rewarding performance improvement also boosts employee engagement.


Why Employee Engagement Matters

The term “engagement” refers to the level of an individual’s commitment and connection to their organization. Companies with highly engaged employees experience lower turnover, increased productivity (that translates to higher profits and market share), lower absenteeism, fewer workplace accidents, less stress for employees, and more.

As of July 2021, Gallup reported that a mere 36% of U.S. employees are engaged in their work. This presents an opportunity for company leaders to use all the strategies available to them to increase engagement.


Why Performance Improvement Programs?

While increasing engagement is reason enough to institute a performance improvement program at an organization, these programs offer additional benefits:

  • Increase overall company productivity
  • Team and individual performance improvement
  • May uncover a skills or training gap
  • Can be used to communicate expectations


When properly structured with input from representatives of the participant audience, performance improvement programs:

  • Align individual or team goals with company goals
  • Determine measurable results
  • Offer meaningful rewards that appeal to the target audience
  • Ensure that all of the necessary tools and resources are provided
  • Communicate at the beginning, end, and throughout the program
  • Reward and recognize achievement


The Real Reason Employees Leave

Many business leaders think that pay and benefits are the magic combination that keeps employees, but the data reveals that the #1 reason employees leave is a lot harder to address: a toxic work culture. This is defined as a workplace where excellence is not rewarded and/or poor performance is tolerated, they see unethical behavior, there is a lack of inclusion and diversity, and workers generally feel disrespected.

When performance improvement or reward & recognition programs are properly structured, they support company values, are aligned with company goals, and hold employees accountable for their performance: all signs of a healthy company culture.

Because a positive company culture and employee engagement are connected, it is more important than ever in this time of the “great resignation” for company leaders to use every strategy available to retain their most valuable assets.

To learn how a performance improvement program can increase employee engagement in your organization, contact one of our experts today!



Brian Galonek


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