Take a look at your organization’s performance appraisal. Do they actively track improved performance? If the answer is no, don’t be too mad at them. Maybe they just don’t know that performance management practices directly correlate to employee engagement. In fact, performance management has numerous benefits on employees and organizations. Think about these performance management stats while you plan an effective appraisal plan for your organization.
Managers who received feedback on their strengths showed 8.9 percent greater profitability.
Companies who implement regular employee feedback have turnover rates that are 14.9 percent lower than for employees who receive no feedback.
69 percent of employees say they would work harder if they felt their efforts were better recognized.
43 percent of highly engaged employees receive feedback at least once a week.
92 percent of respondents even agrees with the statement, “Negative feedback, if delivered appropriately, is effective at improving performance.”
80 percent of Gen Y said they prefer on-the-spot recognition over formal reviews.
Only 14 percent of organizations are happy with their performance management system.
Only roughly half (52 percent) of all companies conduct annual performance reviews.
The bottom line is this: performance management systems are highly underutilized, and when they are, they aren’t being used to their full potential. This in turn causes employees to not be at their full potential either. If the organization puts forth effort in establishing an effective performance management system, then employees will put forth effort to perform above and beyond.