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Three Reasons Performance Management Is Key for Employee Engagement

We see goals so often that we almost don’t even notice that they’re there. From the classic fundraising “thermometer” poster for your local nonprofit or the end zone on a football field, goals are all around us. And it’s easy to forget that somebody had to set that goal.

The same goes for the workplace.

When managers are involved in their employees’ performance and set goals with them, it greatly improves how they feel about the company.

Setting goals elevates everyone’s performance.

Research undertaken by Gallup shows a high correlation between performance management and engagement.

  1. Employees who work for a manager who helps them set performance goals are 17 times more likely to be engaged than disengaged
  2. When managers don’t hold employees accountable for performance, about seven in 10 employees (69%) are actively disengaged
  3. When employees strongly agree that their manager knows what projects or tasks they are working on, they are almost seven times more likely to be engaged than actively disengaged

To be effective at managing employee performance, managers should take on the role of a coach. According to a Deloitte study, a coaching culture is the practice most highly correlated with business performance, employee engagement and overall retention. With this method, the manager guides, supports and encourages their staff in pursuit of high standards and continuous improvement.

When creating an employee engagement strategy, companies should start with the fundamentals, including training great managers that develop, coach and help their staff succeed.

Interested in boosting your employee engagement? Domus can help.

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