In this article, we share a case study about an organization that dramatically improved its employee engagement scores related to performance management. The organization received feedback that high performance was not sufficiently differentiated and acknowledged in the organization, and rewards were not well aligned with performance.
First, the management team analyzed the problem. While annual performance ratings did differentiate performance and led to differences in performance bonuses, this was not an open process. People only saw their own results, and the high performers didn’t realize they were getting greater rewards. Further, the bonuses only came once a year.
In addition, the managers realized that they needed to target employee engagement in a way that appealed more to millennials, which made up a large part of the workforce. This called for a more real-time process, where employees were publicly praised and quickly rewarded for both small and large successes.
To act on these insights, here’s a look at the management team’s next steps:
Three years later, the awards program is still active and working well. Scores related to performance management shot up by 20% in just one year, and the organization has applied the same change management model in other areas as well. It’s a great reminder that true engagement happens one project at a time!