The 7 Most Effective Ways to Boost Employee Performance in 2025

employee performance

Employee performance is the engine that powers every successful business. 

When individuals thrive, teams excel – and when teams excel, businesses grow.

But improving employee performance requires more than simply pushing harder; it requires working smarter, creating the right environment, and giving people the tools and support they need to succeed.

In this article, we’ll explore seven of the most effective, research-backed strategies to improve employee performance, and why now is the time to rethink how we support our people.

1. Shift from Annual Reviews to Continuous Feedback

Traditional employee performance reviews are on the decline – and for good reason.

That’s because a staggering 95% of managers say they’re dissatisfied with their current employee performance review systems, and 90% of HR leaders admit they fail to reflect true employee contributions 

Instead, companies are moving toward continuous feedback, which means regular, informal check-ins that focus on growth, not just evaluation.

Companies using this approach report:

  • 40% higher employee engagement
  • 26% improvement in performance
  • 31% lower turnover rates 

Weekly one-to-ones, real-time recognition, and coaching conversations are replacing outdated annual reviews, and the results are speaking for themselves.

2. Invest in Manager and Team Leader Training

Managers have a direct impact on employee performance, yet many are promoted without the skills to lead effectively. Training your team leaders in communication, coaching, and accountability can dramatically improve how teams perform.

In fact, 53% of companies now prioritise manager training as a key part of their performance strategy 

Looking to upskill your leaders? Our levy-funded apprenticeship programmes equip your employees with the tools to drive performance, analyse data, build trust, and lead with confidence.

3. Set Clear, Aligned Goals

Employees perform best when they know what’s expected of them, and how their work contributes to the bigger picture. Yet many businesses still struggle with goal clarity.

Using frameworks like OKRs (Objectives and Key Results) or SMART goals helps teams stay focused and aligned. According to Gartner, 49% of businesses use performance management to align employee work with business needs 

When goals are clear, measurable, and meaningful, performance naturally improves.

4. Prioritise Employee Development

Performance can’t solely be about output, but instead must also be about growth.

That’s because employees who feel they’re learning and progressing are more engaged, more motivated, and more likely to stay.

This is the reason why 35% of organisations now use performance management to support employee learning and development 

To get this right, offer access to:

  • Personalised learning paths
  • Mentorship programmes
  • Stretch assignments
  • Career development plans

When people see a future with your company, they’re more likely to give their best in the present.

5. Use Data to Drive Employee Performance Conversations

Modern performance management is increasingly data-driven.

AI-powered tools and performance dashboards help managers track progress, identify trends, and have more objective, meaningful conversations.

Companies using AI in performance management are twice as likely to excel in this area compared to those who don’t.

Data doesn’t replace human insight, but it does enhance it. When used well, it helps remove bias, highlight strengths, and pinpoint areas for improvement.

6. Recognise and Reward Contributions

Recognition is one of the simplest (and most powerful) ways to boost performance. Yet it’s often overlooked.

Employees who feel recognised are:

  • 4x more likely to be engaged
  • 5x more likely to feel connected to company culture
  • 73% less likely to experience burnout 

Recognition doesn’t have to be grand. A ‘thank you’ in a team meeting, a shout-out on Slack, or a handwritten note can go a long way.

The key is consistency and sincerity.

7. Create a Culture of Accountability and Trust

High performance thrives in environments where people feel trusted, supported, and accountable. That means:

  • Clear expectations
  • Open communication
  • Psychological safety
  • Follow-through on commitments

According to HR.com46% of companies use performance management to help managers hold employees accountable 

But accountability isn’t about piling pressure on your employees. It’s about a real, sincere partnership. When leaders coach rather than control, performance improves naturally.

Employee Performance is a Shared Responsibility

Don’t think of improving employee performance being about micromanaging or pushing harder. Instead, think about it as creating the right conditions for people to do their best work. That means equipping leaders, setting clear goals, offering feedback, and recognising effort.

As the workplace evolves, so must our approach to performance. By focusing on development, trust, and continuous improvement, businesses can unlock the full potential of their people, and see the results in productivity, engagement, and growth within their business.

At Instep, we specialise in equipping your team with the skills to not only enhance their own career, but to generate a real impact and return on investment for your business.

To learn how we can help you utilise your apprenticeship levy funding, get in touch to arrange a free education consultation with one of our specialists.

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