More than three-quarters of the 300 North American employers surveyed said their managers regularly conduct annual performance reviews and provide performance feedback and ratings, but only 26% said managers routinely provide ongoing, constructive performance feedback and coaching to employees
Asked what one area of their performance management system they would most like to improve, the study found:
- 25% – performance planning
- 14% – ongoing feedback and development
- 11% – leadership and management accountability
- 11% – consistency between raters
- 9% – training and communication
- 8% – automation
However, asked to assess the overall performance of their management system, including performance planning, feedback, evaluation, and development, nearly half (48%) said their system is effective to some extent and 33% rate their system overall effective in achieving the company’s desired result, with 1% saying the result is achieved to the greatest extent.
Conversely, 15% say their system is effective to a little extent and only 3% responded that it is not effective at all.
Overall, respondents reported the top four areas, out of 25, of their performance management system considered strengths:
- Managers conduct annual performance reviews with employees and openly communicate year-end performance feedback and ratings
- Performance management practices are similar across business units
- Employee performance expectations emphasize customer focus and responsiveness
- Alignment between performance ratings and rewards
On the other end, respondents rated the four areas that need the most improvement in their performance management system:
- Ongoing or refresher training and communication on the performance management system for employees
- Alignment with other talent management processes, including career development and succession planning
- Managers base performance ratings on feedback from other knowledgeable sources
Managers receive ongoing or refresher training and communication on the performance management system.
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