Employee Performance Improvement

Employee performance improvement is the process of enhancing an employee's job performance through proactive means. Performance improvement isn’t a punitive measure or corrective action for low performance but rather a strategic approach to management that allows all employees to feel supported and reach their full potential. 

Managers may train, coach, or recognize employees as part of performance improvement. As employees grow, they gain more skills, increasing their productivity, efficiency, and overall job satisfaction.

Common Performance Improvement Techniques

Unlike traditional performance management, which focuses solely on struggling performers, a comprehensive performance improvement strategy prioritizes all employees. Here are some ways companies typically implement this management strategy.

Understand Motivation 

It’s unusual to find a person driven by a single motivator. Most people’s motivation stems from multiple sources, including both intrinsic and extrinsic motivators. Managers can curate a culture that supports employees by understanding what motivates them. 

One of the biggest motivators is financial incentives. In one study, 85% of participants reported being motivated by monetary rewards. A monetary reward doesn’t necessarily have to translate to bonuses or higher pay; gifts or extra PTO also make for effective compensation. 

Employees who feel valued and empowered are also highly motivated. Meaningful recognition—including simple feedback or praise from a manager—can improve employee morale and job satisfaction. Employees who don’t feel suitably recognized through meaningful praise are “twice as likely to say they’ll quit in the next year,” while 80% say recognition improves their happiness at work. 

Additionally, employees develop intrinsic motivation when they’re given clear expectations and purpose-driven work that contributes to an organization's larger goals and overall success. When employees feel like their individual purpose aligns with the organizational purpose, their engagement increases by 49%.

Recommended Reading: Do Rewards Motivate Employees? 

Set Clear Performance Goals

A proactive approach to performance improvement gives employees concrete guidelines while also offering the flexibility to stretch and build their skills. This approach supports all employees, not just those who are underperforming. 

Depending on employee roles and aptitudes, a manager might set goals based on: 

• Productivity and efficiency
• Leadership and professional growth 
• Customer satisfaction 
• Innovation and problem-solving 
• Team collaboration and culture 

When employees have support and mentorship as they navigate these performance goals, they’re more likely to see success and find overall satisfaction. One study found that 91% of employees with a mentor report feeling happy at work. Mentors can help employees celebrate milestones and continue growing as they meet progressive goals. 

Recommended Reading: Examples of Employee Performance Goals and How to Get Employees to Achieve Them 

Offer Meaningful Recognition 

A staggering 82% of employees don’t feel recognized for their contributions at work—and many of them agree that they would work harder if they were recognized more. Knowing this, what does meaningful recognition look like? 

Companies that focus on employee performance improvement utilize these strategies: 

• Mixing in a variety of rewards. The same reward presented repeatedly can get old. Varying rewards ensures they remain exciting and motivational. Along with traditional bonuses and incentives, managers can offer praise or surprise gifts as they recognize employees.

• Providing more responsibility and resources. As employees surpass their goals, their skills and desire for new challenges will likely grow. Managers can support them by offering coveted projects and new software to keep them engaged.

• Investing in employee growth. Professional development is a meaningful way to show recognition to employees. Managers can offer leadership opportunities, skill development courses, or tickets to popular industry conferences.

Recognition supports more than just the person who receives it. When recognition becomes a part of company culture, employees become examples to each other. Individuals can more easily identify successful behavior and model their own actions after those around them. 

Recommended Reading: How to Effectively Reward Employee Performance 

Tailor the Approach 

Employees don’t fit into a one-size-fits-all bucket. Individual efforts, strengths, and perspectives benefit the organization, and recognition for these contributions works best when tailored to each individual. 

For example, when looking at the most memorable recognition an employee had ever received, one study found that: 

• 28% received it from their direct manager 
• 24% received it from a high-level leader 
• 12% received it from a skip-level manager 
• 9% received it from a peer

Everyone has unique needs. Some people might prefer public praise, while others want private recognition. Some might seek feedback from managers, and some might thrive collaborating with their peers. When managers get to know each of their employees, they can better understand what types of training, feedback, and rewards will be most meaningful.

Support High Performers 

Performance improvement strategies should center on helping all employees meet and exceed expectations, including the high performers. While these powerhouse employees may score high in intrinsic motivation, they still desire recognition for their hard work. 

When working with high performers, managers can engage them by:

• Providing constructive feedback 
• Offering flexibility and trust 
• Giving them necessary resources 
• Facilitating professional development

Customized performance strategies and personalized support give every employee the opportunities they need to succeed. It pays dividends for your company, too. Organizations that invest in employee development report 11% greater profitability. 

‍Recommended Reading: How to Engage and Retain High Performers

How It Works: Real-World Performance Improvement Examples

Companies use daily performance improvement techniques to shape their culture and foster employee engagement. Awardco case studies show the power of reward programs as one aspect of the employee experience. 

Global company Ultradent used to take a top-down approach with its employee recognition, but after transitioning to Awardo, they saw how effective a peer-to-peer program could be. Awardco helped offer meaningful rewards for all employees, regardless of location or whether they worked primarily online or offline. This led to a strong work culture of appreciation that closely aligns with Ultradent’s core values.

‍Sorenson’s partnership with Awardco allowed them to overcome the limitations of their old recognition platform to meet the needs of their Deaf employees. Personalized reward options—including video messages compatible with ASL—facilitated deeper peer connections that align with the company’s values and demographics.