Engaged employees take fewer sick days per year and are more flexible during difficult economic times. A performance management system allows employers to set objectives, measure employee performance, and identify top performers. Personality is key in recruitment to reduce issues later on; recruit for personality and provide skills training. Effective communication is important as employees can interpret the same message differently; managers must ensure employees understand. Baseline metrics like absenteeism, turnover, grievances and engagement should be measured before beginning HR initiatives to know the starting point and track progress.