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Ways to Reduce Employee Attrition Using Performance Management and Engagement programs

Jun 07, 2022
Ways to Reduce Employee Attrition Using Performance Management and Engagement programs
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Effective performance management and engagement programs are key to reducing employee attrition. Performance management ensures the set of tasks and outcomes are meeting the goals of an organization effectively and efficiently. As per research, employees having a high engagement rate with their respective employers tend to show a 20% higher performance margin. In addition, with better employee performance, companies can make up to 22% more profits. Thus, businesses need to improve their existing performance management and engagement practices as much as possible.

Let us explore the role of performance management in employee departure and how businesses can reduce it:

How can performance management lower employee attrition?

One of every manager's crucial tasks is to hire the right people for the right job. But, the responsibility doesn't end here; employee retention is essential. Numerous factors influence an employee to continue their job in an organization. Some of the key elements among them are job satisfaction, hard-work recognition, career growth, good relationship with managers and team leaders, etc.

Though a good salary might potentially be one of the reasons as well, it can not motivate employees to stay in a company culture they don't connect with for longer. Therefore, maintaining a good employee performance management policy and company culture is of utmost importance.

By satisfying all the employee motivating factors mentioned earlier, efficient performance management ensures whether the company is meeting the expectations of each employee. Needless to say, this practice can potentially lower the rate of employee departure for any organization. Also, it will build long-term worker loyalty.



Up to 98% of businesses agree that performance management is crucial, However, only 64% state they have been taking an effective approach toward it. So, if you belong to ones who think they do not have a meaningful performance management practice in place, then read ahead to learn ways to achieve it.

How to Reduce Employee Attrition through Proactive Performance Management and Engagement programs?

Here are the 5 most effective ways to attain it:

      Com­mu­ni­ca­tion through weekly check-ins

Companies need to focus on frequent employee performance discussions. Plus, practical coaching sessions instead of the old ranking and rating system. Through ongoing conversations, organizations can learn about the employees on a deeper level. Not only does this approach help in building trust, but it also allows employees to open up about their everyday workplace interactions. It is one of the aspects of better performance management.

With a work environment where managers, peers, and working staff can have open conversations, better workspace relationships develop. Also, it enhances team management and employee engagement resulting in better performance.

While you implement this strategy in your performance management practice, ensure not to overextend the employee check-ins duration. Focus on exchanging feedback and responding to problems in an efficient yet timely manner. Having a systematic feedback process gives employees a solid idea of the expectations from performance review meetings.

      Growth and professional development approaches

As per stats, 87% of millennials support the fact that workplace learning and development are important. And 74% of employees show interest in learning new skills to scale up their knowledge. Employers can enhance employee satisfaction and engagement by offering them adequate time to build their skills. It will also help in recognizing the best talents.

Business leaders must help their employees get better at their job and develop advanced skills to take on greater responsibilities. In addition, it will enable companies to build employee loyalty and enjoy a competitive edge in the industry.

Setting up initiatives for workplace education is incredibly useful. They can be programs for employee mentorships, specific training courses, or anything similar. Here you help your employees in their professional development by enabling them to set practical goals.


Like educational QR codes used in classrooms, organizations can assign dynamic QR Codes to every employee. They can be imprinted in the ID card of the worker for quick access. It will enable employee training tracking through embedded URLs to make workplace education more effective. With just one scan, users can verify training records, including skills, qualifications, completed courses, recertifications data, attendance, and so on. 

        Recog­ni­tion and appreciation




Every hard-working employee prefers to know whether they are doing their job efficiently. And when managers provide them with well-thought feedback, they feel enthusiastic about putting more work into the job. We can say that getting recognition for performance from managers or team leaders is a crucial aspect of employee satisfaction. Also, regular feedback helps workers to assess their strengths and weak points.

The practice also plays a key role in determining every employee's work style and personality type. Hence, managers can take on one-on-one interaction with each employee in a personalized manner. And it can have a huge impact on employees' perspectives on the organization.

      Build employee trust and confidence

An effective way to build trust and confidence among employees is being open about the goals and plans of the organization. It helps employees have a vision of their responsibilities for long-term goals. To attain it, companies need to actively discuss and share their goals with employees in a manner that lets them comprehend its core value.

One way to do this is by engaging employees in planning term-based objectives that'll help achieve the end goal. Let them come up with their unique ideas and plannings, and consider what they have to say. It will build confidence among employees and trust that the company cares about their opinions.

Another aspect to consider in this scenario is to ensure that managers set an excellent example of performance management behaviors. Managers who take time to discuss the personal and professional development of workers and give honest feedback gain the respect of subordinates in the team. It would be best to adopt a coaching technique for performance management.

      Take a strengths-based approach

One way to increase engagement within the team is to provide them workload as per their strength. It makes the employee feel valued, helping them develop a connection to the company. So, ensure to focus on enhancing your employees' most vital working capabilities. Eventually, with this practice growth in the company's allover performance is inevitable.


Follow a person-centric approach that revolves around genuine understanding and support. The traditional approach of performance management focused more on the outcome than the employee’s healthy work-life balance. It is the main factor that encourages workers to leave the organization. On the contrary, organizations, where employees receive appropriate workloads, reflect directly on the overall productivity of the company.

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From the employees' perspective, engagement is all about having a connection with the organization and knowing that the employer recognizes their contributions. Hence, efforts should be put in the betterment of performance management programs where leaders actively support and meet employees' unique requirements. Companies can improve engagement, performance, and employee satisfaction by taking a flexible work and people-centric approach.




About Author: Claron is a brand aficionado. He has an unceasing curiosity about what brands do to break through the clutter to stay relevant to their audience. He also loves to explore how simple tech (dynamic QR Codes lately) can be used to improve customer experiences and consequently, scale up brands

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