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Employee Engagement Performance Reviews Performance Management

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

July 14, 2022
5 min read

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This article was published in September 2019 and updated with new statistics in July 2022.

Employee engagement and performance management statistics — and in particular, data around performance reviews — are essentially inseparable. Any changes made to one area are almost certain to have an effect on the others. For example, performance review statistics show that more frequent reviews and feedback lead to an increase in employee engagement.

Keep reading for more on how these strategies are related and for some top employee engagement, performance, and feedback statistics.

Want to increase #EmployeeEngagement up to 4x? Find out how often managers should give #employeefeedback:

Employee Engagement is Not Optional

Employee engagement is the differentiator when it comes to business success. There are substantial data to show that a team that feels excited about and connected to their work is going to do better work. Engagement affects retention, productivity, and motivation — all aspects of the employee experience.

One of Gallup’s most significant findings is that 70% of the variance in employee engagement can be attributed to managers. In other words, managers make or break employee engagement. That means t need to be active participants in fostering engagement, and one way they can do that is by giving their team members frequent, useful feedback.

Employees who say their managers gave them “meaningful” feedback in the past week were four times more likely to be engaged. Frequent, constructive feedback allows managers to act as coaches who recognize and nurture employees’ strengths, rather than bosses, who delegate tasks and micromanage. This empowering relationship where managers give advice, offer assistance, and advocate for their employees helps develop trust, a key factor in engaging employees.

These five engagement and feedback statistics show why they’re an important part of performance management.

Employee Engagement Statistics

  1.  Employees are 3x more engaged when they receive daily feedback from their managers vs. annual feedback.
  2. 43% of highly engaged employees receive feedback at least once a week.
  3. Highly engaged employees are 87% less likely to leave their roles.
  4. Companies that rank in the top quartile for employee engagement are 23% more profitable than those in the bottom quartile.
  5. Companies that give feedback consistently report turnover rates that are 14.9% lower than for employees who receive no feedback.


Going Beyond Annual Reviews

"There's no way to get better at something you only hear about once a year."

- New York Times bestselling author Daniel Pink

More and more companies are trading the annual employee performance review for those frequent check-ins with managers — traditional reviews are largely unpopular and ineffective. Highly engaged employees receive timely, specific, and actionable feedback that helps them reach their goals, improve performance, and stay engaged. But companies still need a way to evaluate performance, which means performance reviews still have a purpose. There are several review types that can be used in place of or alongside annual reviews:

  • New Hire Reviews
  • Quarterly or Bi-Annual Performance Reviews
  • Competency and Roles-Based Reviews
  • Time-Based Reviews
  • Peer and 360-Degree Reviews

We compiled these performance review statistics to show how performance review systems can impact employee engagement.

Performance Review Statistics

  1. 92% of employees want feedback more often than just once a year.
  2. If they felt they received an unfair performance review, 85% of employees would consider quitting.
  3. 77% of human resources leaders say annual reviews are not an accurate representation of employees’ work.
  4. Companies that rank in the top quartile for employee engagement are 23% more profitable than those in the bottom quartile.


Did you know 85% of employees are at risk of quitting after an unfair #performancereview? See 16 more surprising statistics from @ClearCompany:

Make a Plan for Performance Management

No matter how your company handles employee engagement and performance reviews, the most important part is that you have a performance management plan that takes both into account. Be sure to use performance management strategies that are proven to have a positive impact on your employees. Check out these performance management statistics to see which strategies are proven to be most effective.

Give Praise

Showing appreciation is one of the best and most popular ways to engage your employees. Employee recognition programs are easy to implement and benefit the review process, too:

  1. Organizations with recognition programs have 31% lower voluntary turnover.
  2. 84% of highly engaged employees say the last time they went above and beyond at work, they received recognition, compared to 25% of actively disengaged employees.
  3. 37% of employees say if they received more personal recognition, they’d feel encouraged to produce better work.
  4. 69% of employees say they would work harder if they felt recognized.


Be Clear

When employees don’t have a clear understanding of what they need to accomplish, it’s much harder for them to be successful and they’re at risk of disengagement. Setting performance review goals helps to clarify expectations and reduces confusion about what needs to be done. These data points demonstrate the importance of clarity and goal-setting for engagement:

  1. Only around 50% of employees would “strongly agree” they know what’s expected of them at work.
  2. The ability to set and meet goals is one of the three main indicators of whether or not an employee will be successful in their role.


Support Growth

One of the top priorities for employees today is an employer that supports their professional development. These statistics show the benefits of building growth opportunities into your performance management process:

  1. 86% of professionals would switch jobs if they were offered more chances for professional development.
  2. Engagement is 15% higher and retention is 34% higher when employees have access to growth opportunities.
  3. 94% of employees will stay with a company longer if it invests in their development.

ClearCompany’s Performance Management Platform makes it easy for your HR leaders and team to give more frequent feedback, effortlessly manage review cycles, and recognize employees’ accomplishments. Give your team the tools to automate time-consuming tasks and focus on HR’s role as a strategic business partner.

Sign up for a demo today to see our performance management system in action and test out the features you need.

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