Employees Say Their Performance Management Processes Have Recently Changed.
This is good news. Almost 3 in 4 employees had changes to their performance management processes in the last year. A change in process isn’t always a bad thing. Approaches to performance management often change over time.
Less Than Half of Employees Say Their Current Performance Management is a Good Use of Time
We don’t want employees to find the performance management process disruptive, but we do want them to find it a good use of time and effort. Employees say their organization’s performance management processes could be a better use of their time, easier, more efficient, and more motivational.
Employees Say Managers are the Key to Improving Performance
More than 2 in 3 employees say that feedback from their manager is vital to improving their performance. That’s followed by 1-on-1 conversations with their manager.
About half of managers say that tools and software are effective at improving their performance. It’s important to make sure the tools organizations are using are driving the right things (feedback, 1-on-1s, and goals) to maximize effectiveness.
Performance Management Tool UsageDoesn't Necessarily Match Feedback and 1-on-1 Frequency
1 in 4 employees use performance management software annually. Only about 1 in 10 employees use performance management tools weekly.
It's great that employees report that they're getting feedback and having 1-on-1s, but organizations need to make sure the data from those conversations is getting captured in a centralized, accessible place.
In an ever-changing industry where talent retention has become a competitive advantage, FORVIS knew it needed to reinvent its performance management strategy to engage employees and elevate employee and business success.
Anne Maltese Director of People Insights Quantum Workplace
Every organization wants to maximize innovation, productivity, and performance so they can meet their business goals. But employees say that their organization’s approach to performance management could be more effective, efficient, and motivational.
Performance management is often divided into traditional and continuous approaches. But there’s no one-size-fits-all organizations. Many organizations need to find a middle ground.
Traditional performance management is thought of as annual or biannual reviews that analyze the past with a structured framework. Continuous performance management is based on frequent feedback and positioning the manager as more of a coach.
Transitioning between the two approaches and finding the ideal performance management state doesn’t need to be an all-or-nothing change. It’s better to start where you are and evolve over time.
To transition to a more continuous approach organizations should:
Take one small step. That can be increasing feedback frequency or starting a regular 1-on-1 cadence.
Get employee input. Gain their buy-in by getting their feedback on the change.
Help managers. Managers need training to transition from evaluators to coaches.
Use tech. Our research shows that managers and employees need robust technology to integrate performance management into their daily workflows.
Communicate. The entire organization needs to understand the approach and benefits.
Analyze and act. Take the feedback you receive on the new process and adjust to make the process better.
For many organizations, performance management is a constant evolution. There’s nothing wrong with that. Iterate and keep building off of the successful habits and processes you're building. Especially for managers and employees.
Hear from our team of experts about transitioning from traditional performance management to a continuous approach in the video below.
Check out our list of resources on the right that’ll help you navigate the middle ground of performance management.
Performance Reviews are Low Performing, High Potential
Many organizations are still using traditional annual reviews. But these once-a-year, backward-looking events are not perceived as effective, engaging, or fair. Performance reviews have the potential to be catalysts for performance and growth—if they're done right.
Recognition, Ratings and Actionable Advice are Common in Performance Reviews
Most performance reviews contain a combination of recognition, ratings, advice, career growth, performance data, and might even discuss pay. But it doesn’t appear that most managers are taking advantage of using AI to assist them with performance reviews.
There’s a Big Gap Between Effective and Ineffective Performance Reviews
There’s a clear difference in the content of an effective review versus and ineffective review. The top five factors that make up an effective review include:
The Potential of Reviews in Boosting Engagement, Performance, and Perceptions of Fairness
Performance reviews—if done well—can be a key lever for driving employee engagement and inspiring employee performance. When reviews are forward-focused and development-centered, they’re more likely to engage employees and drive improved performance.
Reviews that feel human and backed by data feel fairer to employees. This means recognizing employees, giving advice they can act on, reviewing performance data together, and talking about future growth opportunities.
Conversations That Feel Human and Backed by Data Feel More Fair
Actionable advice, career growth, performance data, and recognition conversations during performance reviews feel more fair to employees than receiving a rating.
“Customer Surveys and 1:1 cycles help us monitor employee responses to new programs at crucial moments in their employee journey. We can quickly address concerns, contributing to the success of many new initiatives.”
Julie Melidis Director of Learning and Development at Benesch
Anne Maltese Director of People Insights Quantum Workplace
Our research shows that employees feel their performance review was effective and that their performance improved when the review included:
Review of performance data
Recognition for their work
Discussion of career growth
Actionable advice from their manager
Performance data that avoids being subjective helps employees feel the performance review is objective and fair. Recognition for good work, when there is good work, makes employees feel valued for the work that they do and feel impactful to the organization’s success. Career growth changes the conversation from looking at the past to preparing for the future. And actionable advice gives employees what they need to make changes based on feedback.
What happens in the performance review is important. But the frequency of performance conversations is too. In fact, perceptions of performance review effectiveness are higher when reviews are done more frequently than annually. This results in 11% more engagement, 8% more favorable views regarding fairness, and a 5% greater likelihood of employees saying their performance has improved.
In the video below, our experts discuss evolving performance reviews.
Check out our list of resources on the right that’ll help you feel more impact with your performance reviews.
Managers Want More Clarity, Time, Training, and Recognition
What do managers say they need to be more effective and impactful as managers? They need more clarity about how their performance is measured, more time with their teams, more management training, and more recognition for their good work.
And when it comes to training? 39% of managers have received zero training or development related to effective management practices and only 32% of managers have received training or education related to managing remote employees.
Engagement and Performance Technology Help Managers Feel More Effective
What technology makes a manager more effective? Managers say everything from understanding their team’s engagement to evaluating performance and documenting 1-on-1s.
Managers Tend to Overestimate Their Ability to Spot High Performance
What does high performance look like? When compared to the perceptions of non-managers, managers might be overestimating the extent in which they can identify high performance.
“Yes, managers are a critical part of performance. But they’re so much more than that. They’re your culture champions. They drive action in response to engagement surveys, communicate to teams, and create a culture of feedback. We can do more to empower managers in not just performance efforts, but engagement as well.”
Anne Maltese
Director of People Insights
Quantum Workplace
Want to learn more from Anne? Follow her on LinkedIn.
More Frequent Performance Activity Leads to Higher Engagement
When employees have increased frequency of goal setting, 1-on-1s, feedback, and performance evaluations, they are more engaged. All of these activities are usually completed with their managers.
Survey ConversationActivity Leads to Higher Engagement
When employees agree their managers have productive conversations about survey, they are 4.1x more likely to say their company takes effective post-survey action.
Managers Can Impact Engagement by Creating an Open Environment
When employees agree their managers foster a comfortable team environment where they can express thoughts and concerns about changes, they are 2.4x more likely to be highly engaged.
Scooter’s Coffee Empowers Managers with Tools to Maximize Performance
“As a leader of multiple teams, across a broad array of functions, roles and responsibilities, the tool has allowed me to not only be more organized in communicating with and aligning my direct reports, but also to have clear visibility to the communication, development, engagement, and recognition of all levels within my organization.”
Missy McKinley Senior Vice President of Operations at Scooter's Coffee
Anne Maltese Director of People Insights Quantum Workplace
Let’s be honest, managers aren’t always innately skilled at evaluating, managing, or coaching employees to high performance.
But that doesn’t mean it’s not an essential part of their role. You could argue that managers are THE key player in your employees’ performance, growth, and overall success.
Given what’s at stake, organizations can do more to support managers as they work to help their team members, teams -- and ultimately the organization -- to thrive.
The best way to start investing in your managers is by making sure they’re equipped to evaluate, manage, and coach to high performance the right way – in a way that’s aligned with your culture and helps employees grow.
Here are a few things you can do to get started:
Ensure managers understand the organizational strategy and priorities.
Include managers in strategy conversations about your performance management approach.
Outline expectations for clear, transparent communication with employees.
Align on team goals and performance expectations.
Set cadences for managers to have consistent coaching with employees and technology to guide conversations.
Empower them with technology and tools that make them more effective and efficient.
Encourage a culture of continuous improvement.
Position managers as a coach, not a critic.
Create avenues for managers to recognize great work.
When organizations empower managers, they inspire everyone on their teams to deliver their best work.
Want to take the next step? Check out this video where I talk about helping managers with performance management.
Check out our list of resources on the right that’ll help you empower managers.
Employees are motivated to perform when they’re given the tools they need to be successful and inspired to have an impact on team and organizational goals.
Employees are more likely to be engaged when they have goals that focus on their development or align up to the organization’s most important objectives.
Employees are 3.2X more likely to be engaged when their performance goals are aligned with their organizational goals.
Employees who set developmental goals are 2x more likely to be highly engaged than those who don't.
Employees – especially managers – want more recognition for their work. 51% of all employees surveyed said they want more recognition, while 58% of managers said they’d like more.More than half of employees who receive recognition quarterly or less would like more, and 63% of disengaged employees said the same.
When considering various reasons for recognition, 71% of employees said their most preferred recognition was for their performance or accomplishments in their role.
Employees Want Frequent Coaching, Especially in a Remote Environment
Employees prefer weekly coaching and one-on-one conversations with their managers, regardless of their work environment. However, 43% of remote employees are more likely to prefera weekly cadence, compared to 27% of onsite employees.
More Frequent Feeback Drives Engagement and Retention
More frequent manager-employee one-on-ones can have a significant impact on an employee's engagement and retention. Employees who receive more frequent feedback are 2Xmore engaged, 3X less likely to apply for other jobs, and 1.4Xmore likely to stay at their organization.
46% of all employees want more performance feedback. Managers and leadership are more likely to say they want more feedback. Almost 70% of employees who receive feedback twice a year or less say they would like more. Unengaged employees are more likely to say they want more feedback.
Fossil Group, Inc. Makes Time for Performance With a Strategic Platform That Wins
Fossil achieves 100% of strategic goals for 2 consecutive years, 10% forecasted sales growth, and better alignment between employee goals and organizational goals.
Anne Maltese Director of People Insights Quantum Workplace
Your approach to performance management is key to organizational success. By using the right strategy, you can both inspire and engage employees and achieve the organization’s goals.
Employees perform when they understand the role they play in the company’s success, can see the impact of their work, receive timely and helpful feedback, and are recognized for their efforts and accomplishments.
Connecting the dots for employees from their organization’s strategy to the work they do every day is so important. Employees are more likely to succeed when they understand, believe in, and contribute to the bigger picture.
To inspire employee performance and impact, you should:
Align individual goals with organizational goals.
Provide regular coaching for improvement.
Recognize top performers and work in connection with performance and company core values.
Your responsibility as HR leaders is to help leadership maintain a workplace where employees can do their best work.
In this video, I talk about the connection between performance and engagement.
Check out our list of resources on the right that’ll help you build a high-performance culture and inspire employee impact.
