Employee Performance – 3 Key Factors that will Improve it


For any business, Employee Performance is the key to success. Every individual employee must work toward the company’s vision and mission. There is no overarching mantra about employee performance - it is all about how businesses manage, upskill, and motivate their employees.

According to SHRM's 2020 Report, more than 85% of Employees are not engaged in their Workplace. So, businesses need to find a way to ensure employee engagement, which in turn leads to employee productivity. 


Many companies struggle to answer questions such as:

What is Employee Performance?

Employee performance is a measurement of how well or how poorly an employee conducts their required job duties and how promptly they meet their deadlines or requirements.

Measuring employee performance can help you identify possible faults in your employee training program and guide you as to how you can improve.

How to measure Employee Performance?

Employee performance can be calculated from 3 sources:

  • The employees themselves: People are usually their own worst critics. This is why asking an employee about their performance can be effective. Once employees complete a task, they can be asked to fill a form asking how efficiently and how fast they completed a task. This will help them understand where they are lagging and help them over time.
  • Their reporting manager: Managers can measure their employees' performance using sequential number scales such as 1 to 5, or 1 to 10. Apart from measuring the quality and speed of the completed tasks, also measure how well an employee understands the tasks, collaborates with other members, and shows dedication to work.
  • People they work with: Getting feedback from the group that an employee works with is important to understand if their collaborative efforts are successful. This can include their colleagues and supervisors or even members from other teams that they occasionally work with.

What are the Factors Influencing Employee Performance?

The key factors that influence employee performances are:

  • Job Satisfaction
  • Training and Development
  • Employee Engagement
  • Goals and Expectations
  • Tools and Equipment
  • Morale and Company culture

Employees won’t perform in a vacuum. Certain factors like the employer, personal preferences, and many other external factors affect employee performance.

We are not going to consider factors that hinder employee performance like personal problems because the organization cannot eliminate these types of factors. Alternatively, we are focusing on factors that have a positive impact on employee performance.


Companies being thoughtful about how to engage their employees can make all the difference. There’s no simple or easy way but there are certain key areas that can create powerful outcomes.

The mantra is simple since we know the factors that have a positive impact on employee performance focusing on these factors will eventually increase employee productivity.

Common ways to improve employee performance is to identify underperformance issues and match them according to your employee skills. You must enrich two-way communication to have a positive work environment. Set clear goals and achievable milestones and effectively train employees to stimulate growth and achieve effective employee productivity and performance.

Let’s discuss the three primary factors that companies should emphasize to improve employee performance.

1. Training and Development

Training focuses on immediate improvements such as mastering a change in your business software whereas development focuses on long-term objectives. Employee performance depends on the training he/she gets from the company. Companies have different levels of training and employee performance expectations depending upon the situation.


Investing in training can increase your profit margin by 24% or more because it makes your employees better at their jobs. Training also helps improve retention and decrease turnover. In a recent survey, 68% of employees say training and development is the most important company policy so leaders must understand every individual and provide appropriate training to retain their workforce. 

Moreover, training doesn’t end at onboarding. If employees receive no training after their first few weeks on their job, they will feel like the company isn’t investing in their development.  Companies must provide a seamless learning environment for employees which fosters employee career advancement.

For the things we have to learn before we can do them, we learn by doing them - Aristotle

Similar to Aristotle's saying, a modern digital adoption platform makes your employees learn by having hands-on experience with the product (in-app training) by creating interactive walkthroughs. This innovative method decreases the time spent on training by 70% and improves employee performance.

2. Employee Engagement

The Workplace Research Foundation (WRF) found a 10% increase in employee engagement investments can increase profits by $2,400 per employee per year.


Though the numbers overwhelmingly prove employee engagement plays a vital role in revenue generation.

Employee Engagement = Greater Productivity = Better retention = 21% higher profitability

Since we got to know the positive side, let’s look at the other side of the coin. According to Gallup, actively disengaged employees cost around $450 to $550 billion every year in lost productivity.


By now you would be knowing the importance and necessity of employee engagement. We can keep on adding things, but it’s all in the hands of the companies to follow it and achieve higher levels of engagement. The term people-focused culture underlies most of the factors mentioned above. Further, companies should primarily focus on:

  1. Clarifying goals
  2. Providing the right tools
  3. Listen to employees
  4. Gratitude is a key

a. Clarifying goals

Companies should not think of employees only as a revenue generation tool. They should understand every individual employee and must define the goals for that employee.

A goal without a plan can never be accomplished

Answering employee questions and having a clear plan to achieve the goal will certainly improve employee engagement, some of the basic questions from an employee’s perspective are:

  1. What am I supposed to do?
  2. How well am I required to do it?
  3. What does management think about my performance?
  4. Will I be rewarded if I perform well?
  5. What are the growth opportunities?

b. Providing the right tools

Another survey says a staggering 87% of employees are not engaged with their work. Providing the right tool is one of the most important factors that drive employee engagement and improves business outcomes. Market leaders say “Businesses are getting more complex” so it essential for companies to ensure that all employees have the right tools and are operating in an efficient or flexible environment.

Companies that have both engaged employees and the resources to adapt to the rapidly changing environment are the ones who can survive disruptive market conditions. Transform your company to the latest digital transformation trend and procure effective digital tools that ensure employee satisfaction with the product. 

Employee engagement is an investment we make for the privilege of staying in business - Ian Hutchinson

A Digital Adoption Platform like Apty is one such investment that ensures employee engagement and maximizes your productivity by as much as three times and provides support in real-time (Apty is rated 98% in quality of support by renowned review platform G2 crowd)


c. Listen to employees

According to, Employees whose voices are heard are 4.6 times more likely to deliver their best work. Hearing the voices of employees ensures not only inclusiveness but also equality in the workplace.

Effective leaders must listen to what employees say and the communication should be a two-way street. Inviting more employees to the discussion table and hearing out different opinions is always a win-win situation.

To win in the marketplace you must first win in the workplace - Doug Conant

One of the secrets to an effective way of employee engagement is allowing for employee input in a  company’s decision-making process. Since the company respects their voices, employees feel happy and actively participate in such sessions.

Furthermore, by listening to your employees you can get to know the pain points they are facing.

Alternatively, you can leverage a Digital Adoption Platform like Apty that helps to monitor the employee journey within your enterprise applications and provides insights like where, when & how your employees are struggling with the product in real-time.

d. Gratitude is a key

To unlock employee engagement, expressing gratitude is the secret key. Simply showing gratitude like “Thank You, You’re doing great, Good job” can increase employee engagement in the workplace. Doing this will make your employees happier and also boost employee performance.

More than 80% of employees say they are motivated to work harder and better when the management values and appreciates their work. Unfortunately, in many companies, people are less likely to show gratitude in the workplace. Every individual feels happy when they get appreciated but however, this doesn’t happen.

The struggle ends when the gratitude begins - Donald Walsh

Showing simple forms of gratitude will go a long way in improving employee engagement and make them more productive.

3. Company culture

Employee engagement doesn’t happen all of a sudden — company must focus on employee needs & wants over time and should drive a strong culture.


What is puzzling still is that how does company culture affects employee performance? Let’s have a look at some facts and discourse the buzzword company morale and culture

According to the Glassdoor’s Culture Survey, 2019 report over 77% of adults across four countries (the United States, France, UK, Germany) consider a company’s culture as the priority while applying for a job and more than 50% of respondents said that company culture is more important than salary when it comes to job satisfaction.

While unique perks and high salaries once may have been the keys to attract top talent, but now the situation has altered. Companies must understand that salary alone cannot make your employees happy, culture matters a lot.

If you get the culture right, most of the other stuff will just take care of itself - Tony Hsieh

Companies that have strong cultures saw a 4 times increase in revenue. Culture is the backbone of the company that helps in employee retention and motivates your employee performance. Company culture empowers employees to defy the odds and achieve greater performance.

Also, culture needs to be cultivated regularly for long-term benefits, it’s not a one-time objective to achieve. The more the company invests in culture the more employees become engaged.

Company culture = Employee happiness & Satisfaction = Employee performance

Company morale and culture go hand in hand with performance.


Employee Performance Management

As a company develops plans to improve company culture, they also need to plan for employee performance management. The five steps involved in employee performance management are:

  1. Planning- Plan your work before you proceed
  2. Monitoring- Set expectations and continually monitor 
  3. Developing- Develop the capacity to perform
  4. Rating- Periodically rate your employee performance
  5. Rewarding- Reward and motivate good performers 

Rewarding is of two types,

  1. Intrinsic Rewarding- the personal satisfaction an individual gets from the job itself.
    1. Achievements
    2. Job satisfaction
    3. Personal growth
    4. Informal recognition
  2. Extrinsic Rewarding- the external rewards that come from an outside source(management)
    1. Incentives
    2. Promotion
    3. Bonus
    4. Fringe benefits

Make employees happy 

According to talent-works, happy employees are 31% more productive and show 3 times more creativity than their unhappy counterparts. Happy employees are more resilient and more likely to stay in the same company for a longer period. 

Furthermore, happy employees do more work and they are the ones who drive the company toward long-term goals by being more productive and efficient.

Watering the tree of happiness begets employee productivity

Company culture, co-workers, personal problems, management expectations, and many other things have an impact on employee happiness. Companies must take initiative to make their employees happy by knowing what they want and provide them with the right tools that enhance employee skills.

We hope the above-discussed techniques will be helpful to effectively improve employee performance. To improve employee engagement and performance, even more, you can leverage digital adoption platforms. Try Apty today to see how this versatile tool fosters employee productivity, employee engagement, and employee performance.


Revanth Periyasamy
Written by Revanth Periyasamy

Revanth is a marketing champ at Apty. An ardent tech geek who loves to write on trending topics and is a big fan of all things relating to marketing.

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