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Employee Engagement Performance Reviews Performance Management

17 Mind-Blowing Employee Engagement, Performance Review, and Performance Management Statistics

September 10, 2019
8 min read
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Performance Management, Supercharged


Performance review statistics indicate that constructive feedback is vital to an employee’s ongoing development. From A Players to under-performers, and everything in between, employees need timely, specific, and helpful feedback to reach their full potential. Positive feedback helps build confidence, while constructive criticism clarifies expectations and allows people to learn from their mistakes.

In the current workplace, the annual performance review isn’t your only opportunity to tell your employees what's working and what's not. 96% of employees say that they want to hear feedback regularly. Daniel Pink, a Washington D.C.-based author says, "There's no way to get better at something you only hear about once a year."

Going Beyond Annual Reviews

Most annual reviews often rely on managers’ memory, which can lead to biased reviews and missed opportunities for growth, making the conversation less productive than it should be. When employers don’t actively track improved performance, employees suffer because there is no actual basis for measuring performance. In an office filled with employees, it’s impossible for a manager to remember an entire year’s worth of performance indicators. Harvard Business Review refers to this as distance bias: The more recent an event, the greater value is assigned to it. In other words, an employee’s performance in the last week or month has greater value to a manager than performance over the entire year, leading to an unfair review process. As we have said before, annual employee performance reviews are on their way out. Employees want feedback more often than just once a year.

Clear and consistent feedback is essential to #EmployeeEngagement. Check out these 17 statistics from @ClearCompany that prove it:

In fact, 32% of employees say they have to wait more than three months to receive feedback from their managers. But, even though employees appreciate getting feedback, managers don’t enjoy giving it out. Feedback is about providing information so behaviors can be changed. By providing specific feedback on the behavior you’re looking to be altered, you’re more likely to see the employee work to change it. If you wait for an annual employee performance review, you’re too late—they’ve already forgotten about it. This is a giant opportunity for managers to develop their employees. 

Aiding the Employee-Manager Relationship

More frequent feedback can also establish trust between the employee and their manager. A Harvard Business Review survey found that while 58% of people trust strangers, only 42% trust their own boss. Practicing regular feedback instills praise and constructive criticism as a regular part of the work environment, so employees feel more comfortable and open to giving and receiving feedback.

Additionally, Gallup reports that managers are responsible for at least 70% of the variance in their employees’ engagement. Employees whose managers regularly communicate with them are nearly three times more engaged than those with managers who don’t regularly communicate. 43% of highly engaged employees receive feedback at least once a week. Employee reviews should be happening more often while taking less time to complete. When performance reviews happen often it increases employee engagement, reduces turnover, and increases company productivity.

Download our Manager's Guide to Giving Effective Performance Feedback!

Reviews and Employee Engagement

Take a look at our 17 compelling performance management statistics and see the direct correlation to employee engagement:

  • 45% of HR leaders do not think annual performance reviews are an accurate appraisal of employees’ work. (Source)

  • Managers who received feedback on their strengths showed 8.9% greater profitability. (Source

  • Companies that implement regular employee feedback have turnover rates that are 14.9% lower than for employees who receive no feedback. (Source)

  • One in five employees is not confident their manager will provide regular, constructive feedback. (Source)

  • 24% of workers would consider leaving their jobs if they have managers that provide inadequate performance feedback. (Source

  • Teams led by managers who focus on their weaknesses are 26% less likely to be engaged. (Source)

  • 69% of employees say they would work harder if they felt their efforts were better recognized. (Source)

  • 21.5% of employees that don’t feel recognized when they do great work have interviewed for a job in the last three months, compared to just 12.4% that do feel recognized. (Source)

  • 24% of employees who felt they had not received recognition from their direct supervisor in the past two weeks had recently interviewed for another position, compared to just 13% who had received recognition. (Source)

  • 92% of respondents agreed with the assertion, “Negative (redirecting) feedback, if delivered appropriately, is effective at improving performance.” (Source)

  • Only 8% of companies believe their performance management process is highly effective in driving business value, while 58% say it’s not an effective use of time. (Source)

  • Recognition is the number one thing employees say their manager could give them to inspire them to produce great work. (Source)

  • 80% of Gen Y said they prefer on-the-spot recognition over formal reviews. (Source)

  • 63% of Gen Z said they want to hear timely, constructive performance feedback throughout the year. (Source)

  • 27% of workers strongly agree that the feedback they currently receive helps them do their work better. (Source)

  • On a scale of 1-10, managers who gave the right amount of feedback earned an average score of 8.6 from workers. (Source)

  • 68% of employees who receive accurate and consistent feedback feel fulfilled in their jobs. (Source)

These performance review statistics show that organizations are full of people who are motivated by recognition; they are propelled by seeing and hearing the value of what they do. Money and benefits are great, but many workers really value regular feedback from their superiors. As a leader, the most simple, impactful thing you can do is to make sure each person on your team feels valued.

68% of employees who receive accurate and consistent #feedback feel fulfilled in their jobs. Find out more reasons why regular feedback boosts #EmployeeEngagement in this article from @ClearCompany. 

Make It More Than Just Performance Review

Give Praise

Beyond simply receiving feedback, 63% of employees feel like they don’t get enough praise. Not getting recognized for good work can be quite frustrating for employees. Taking the time to recognize individual contributions is a simple solution and an essential part of increasing retention and lowering turnover. Research from Deloitte discovered organizations with retention programs and more effective employee engagement had 31% lower voluntary turnover.

Pay Attention

Happiness is another factor that can cause turnover. According to these feedback statistics, 29% of workers say they don’t feel happy at work and 26% say that work affects their happiness outside the office. As such, managers should focus on employee satisfaction. Salary and benefits play a big part in job satisfaction. Workers need to feel like they’re being fairly compensated for the work they do, otherwise risk becoming disengaged. Managers who want happy employees should support and coach them in reaching their salary goals.

The overall work environment can improve employee satisfaction, too. One way a manager can impact their employees’ experience is through onboarding programs and goal-setting. By having an efficient onboarding program, managers can get new hires integrated into their teams quickly and ramp up their productivity expediently. Employees need to have clarity around what they do for their day-to-day tasks, and they need to clearly understand how those tasks are evaluated. A lack of clarity brings confusion, which leads to stress, which leads to disengagement.

Find What Works For Your Team

Help your employees grow and flourish in your company by implementing a new employee performance review strategy. Once a week may seem too often, but once a year isn’t cutting it anymore. While 69% of companies still rely on annual or bi-annual performance reviews, more than half of office professionals want performance check-ins at least once a month, and 94% would prefer their manager to address mistakes and opportunities to improve in real-time.

Are you struggling to find a solution that allows you to easily give feedback without the time and energy it takes to conduct lengthy annual reviews? You’re not alone. Nearly 2/3 of managers wish they had a better way to collect feedback from their team and peers to assist with performance discussions.

ClearCompany’s performance management solution gives your employees the most concise, clear, and actionable performance tracking you could ask for. Sign up for a demo today and see how easily you can give your employees the feedback they crave.

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