What is employee engagement?

Employee engagement stands for more than just employees loving their job. It includes all the driving factors that make someone enjoy doing their job—motivation, determination, and dedication. Employee engagement is given so much value because, when employees feel engaged, they feel invested in the process and outcome of their work, and hence put 100% of their effort into it.

You can help ensure employees remain engaged in their work by considering the following actions:

• Having a clear, concise job description that doesn’t change on a manager’s whim
• Offering recognition for good work and regular coaching
• Having obtainable targets and goals
• Help keep employees excited about their next challenges
• Let employees know you trust them and make them feel like an important part of your team (no matter their position)
• Encourage team work, whereby employees are willing to go the extra mile to get things done because they know their management and colleagues will do the same
• Keep your promises and commitments
• Encourage employees to take pride in the work they do
• Listen to employees. This means considering their ideas and opinions when important decisions need to be made

What is performance management?

Performance management is the act of managing employees efficiently to improve their job performance. There are a few things that need to take place to accomplish this successfully:

• Track and document productivity, successes, and areas that need improvement
• Share your findings with the employee and give insightful feedback
• Offer training, help them set attainable goals, and encourage career advancement
• Facilitate year-end reviews or performance appraisal meetings between managers and employees

What are performance appraisals?

Performance appraisals are unbiased assessments of employees’ ability to carry out their job responsibilities. It facilitates enhanced employee engagement and productivity through motivation. Read more: How to Conduct an Employee Evaluation

How to keep employees focused

Schedule a yearly performance appraisal in which you discuss achievements, suggest improvements and company needs, and realign company/personal targets and goals. With regular reminders and team collaboration throughout the year, your employees will stay motivated and focused on shared goals and targets.

If an employer or manager takes no action between the current performance appraisal and the next, you can expect little focus or engagement from your employees. If you don’t keep what’s important to them top-of-mind, they may not either. There have to be continuous conversations, feedback, and support to show your employees that you value their efforts—this is the best way to ensure focus and engagement.

How do performance appraisals strengthen employee engagement?

Motivation is a powerful emotion that can energize and excite your employees to confidently reach their goals. A well-structured performance appraisal can also send a strong motivational message. You could accomplish this in a few different ways:

• Don’t tell employees they need to improve without giving any further explanation. Be clear about company objectives, how their job affects the outcome, and what you expect from them.
• The need to feel appreciated and recognized is a very strong human trait. Even though your employees may get the occasional “thumbs up” from a distance, or a “great job, keep it up” as their manager walks by, this often isn’t enough. Use the performance appraisal as an opportunity to outline the specifics of what makes you happy and proud of your employees.
• An employee will notice when management puts effort into the appraisal process. When there is a genuine effort put into documenting, analyzing, and coming up with suggestions and strategies for improvement, it gives the employee a sense of value, even if the feedback is negative.
• Personal growth and career development are significant by-products of a good performance appraisal—offer feedback on what it would take to achieve the next goal or what the next steps are to advance their position and grow the business.
• Show trust and respect throughout the performance review by listening to all of your employee’s concerns, suggestions, and ideas.
• A good performance appraisal can motivate an underperformer to turn things around. When done properly, the appraisal report will show your employee what the issues are and what’s required from them in the future to achieve a more positive appraisal.
• Performance appraisals can increase job satisfaction. When employees feel recognized, valued, and trusted, their job satisfaction is higher. Happy employees mean less turnover, tardiness, and absences.

What role does human resource management (HRM) play?

HRM plays a significant role in acquiring, motivating, and developing employees within an organization. The best strategy to use will depend on what kind of company culture the company has. There are two types of approaches a manager can take—hard HRM and soft HRM.

What is hard HRM?

Hard HRM centres more around conventional business strategies and foresight. Employees are simply seen as a resource, so the business focuses on how many people are available for varying times and tasks (seasonal work) rather than the quality of their work. There are no loyalties in this approach. People are hired and let go without remorse. Hard HRM usually takes the approach that “everybody is replaceable” any time there’s an issue. The hard HRM approach has some more distinct features, such as:

• excessive employee turnover
• lower pay-scale
• no employee empowerment
• employees are only told what they need to know about the business
• the company takes a dictatorship leadership approach
• job expectations are set and non-negotiable
• employees are told what to do and when and how to do their job
• little-to-no career development support
• performance appraisals are solely target-focused

Advantages of using a hard HRM approach

Both the hard and soft HRM approaches have advantages and disadvantages. These are some of the advantages of using a hard HRM approach:

• The company owner maintains ultimate command of the company
• The owner can be as strict as needed
• Opting for cheaper policies is easier
• Decisions can be made quickly
• Results are consistent
• Pressure is only on the owner
• Lesser chance of making mistakes
• Processes are more standardized

Disadvantages of using a hard HRM approach

• Low employee morale
• High employee turnover
• High recruiting costs
• Large groups of employees may band together and revolt
• Zero input and feedback from employees
• No chance to hear people’s innovative ideas
• Everyone has to rely on the owner’s experience
• Productivity fluctuates due to continuous employee turnover

What is soft HRM?

Soft HRM focuses more on forward-thinking business strategies and outlooks. With a soft HRM approach, management treats their employees as the most valuable resource in the company. Soft HRM cares about employees’ needs, feedback, ideas, and suggestions, along with what motivates them. These are some features of the soft HRM approach:

• Soft HRM can see the big picture and plan for long-term success
• The business model is an open concept for all to see
• Communication is clear and concise
• Employees feel empowered
• Competitive compensation
• Performance appraisals provide opportunities for training, career development, and advancement
• High employee morale
• More long-term employees
• Managers have tact and diplomacy
• The company runs more like a democracy

Advantages of using a soft HRM approach

• High employee morale (the biggest benefit from a soft HRM system)
• Employees feel valued, appreciated, and motivated
• Creates the desired company culture
• Higher productivity
• Higher level of participation
• Greater collaboration
• Creates equal opportunity
• Fewer absences and tardiness
• Employees commit to their workplace and stay there for the long term
• Lower employee turnover
• Lower employee recruitment costs
• Lower levels of workplace stress
• Better communication between management and employees
• Increased creativity when employees feel empowered
• Creates competitiveness, which inspires innovation

Disadvantages of using a soft HRM approach

• Higher training and personal development costs
• More time spend by management with continuous monitoring, discussions, and feedback
• Decision-making takes longer when more people are involved
• Higher wage payout
• Some employees could take empowerment too far and overstep their roles

Both hard and soft HRM systems have their good and bad characteristics, but modern employees are looking more for businesses that use soft HRM systems. Performance appraisals paired with a soft HRM system can help motivate workers and improve employee engagement, which is ultimately the key to long-term success for both you and your employees.