More than an HR trend, performance management is integral to meeting corporate objectives. It does so by focusing on employee skills, resources and support to maintain and improve their performance, in line with the company’s goals.

But guess what? A performance management program delivers a number of added benefits that increase its value to your organization. And employee retention is one of the most valuable of all.

4 Ways Performance management Boosts Employee Retention

According to HR Advisor, who suggests that employee retention can be a KPI of a performance management system, businesses can reduce turnover by 14.9% just by giving employees “more strength-based feedback”.

Anyone who has done a cost analysis of the true cost of hiring new employees will appreciate the significance of that number.

Here are just a few ways that performance management initiatives help reduce staff turnover.

Increases Morale

From regular reviews that recognize achievements to offering opportunities for growth, any emphasis on the individual helps them feel more valued and part of the plan. Studies show that employee recognition can improve productivity, motivation and trust too.

Helps Guide Career Paths

When employees see a roadmap to the future of their career, it not only gives them a goal, but it increases their motivation and gives them reasons beyond a paycheque to stay on.

Gives Each Employee More Autonomy

With the recognition of their contributions, a better understanding of their role in the success of the company, and support for their personal growth, employees feel more responsibility and autonomy in making the right choices about their work. In turn, that gives them more fulfillment, increased satisfaction, and a better sense of wellbeing in their roles.

Makes Them Feel More Connected

With increased attention on their roles, having more reason behind their actions, and better communication with supervisors and management, employees are more engaged in the day-to-day success of their work, and the company.

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