Employee Performance—Key Factors That Will Improve It

Employee Performance Graph

Wondering how to improve employee performance? Here's all you should know about improving overall business performance through effective leadership skills and qualities.

The key to any company’s success is motivated employees that collectively work toward achieving the mission and vision of the business. According to research published in SHRM in 2020, more than 78% of employees reported feeling less productive as they’re not engaged in their workplace.

Experts suggest that, while there’s no overarching mantra, company culture plus employee engagement equals employee performance. Here are a few factors that influence employee performance.

  • Job satisfaction
  • Tools and equipment
  • Morale and motivation
  • Compensation and rewards
  • Work-life balance
  • Goals and expectations
  • Performance appraisal



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Now that we have a vague sense of factors that positively impact the performance of employees, the next step is to identify under performance issues so that they can be matched according to workers' skills. Here’s how:

  • Encourage enriched two-way communication
  • Inspire a positive work environment
  • Set achievable and clear goals and milestones
  • Effectively train workers to stimulate growth
  • Instill skills to improve performance and productivity

Factors That Businesses Should Emphasize On To Improve Employee Performance

Training And Development

Investing in employee training can increase a business's profit margins by over 23% because it can help them master skills that make them better at their jobs. Training is an effective way to improve a company's turnover rate and also increase retention.

Research reveals that 67% of employees feel more satisfied with their jobs when they feel the company invests in training and development as part of the employee performance improvement plan.

Employee Engagement

A study by Gallup revealed that actively disengaged employees cost billions of dollars worth of lost productivity, whereas an increase in employee engagement investments can improve profits by over 12% per year.

Companies who wish to enhance employee engagement should primarily focus on:

  1. Clarifying the goals, answering all questions workers might have, and devising a clear plan to achieve the targeted goals.
  2. Provide the adequate tools and procure resources to equip employees to adapt to rapidly changing disruptive market conditions.
  3. Personality traits of great leaders who aim to improve overall business performance, including understanding the importance of healthy two-way communication, such as employee input in the decision-making process.
  4. Approximately 78% of employees agree that they are motivated to work harder when they receive gratitude and employee appreciation letters from the management.

Company Culture

Culture is the backbone of any business, and some workers reveal that it's more important than job satisfaction and salary. If you're wondering how to improve employee performance, you should know that apart from good leadership skills, a company’s culture empowers workers to perform better and increase revenue up to 6 times.

Interested in reading more about methods of performance appraisal, coaching employees and workplace counseling in performance management, and progressive discipline process?

Thank you and may God bless you!

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