Employee Performance Management Study Uncovers the Real Business Challenge

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Brandon Hall Group’s latest Performance Management research shows that many employers view performance management through the lens of the performance review process. But performance evaluations are not a critical problem. They are a report on the outcomes of manager-employee performance development, not the driver of it.

Brandon Hall Group's Performance Management Study 2020
Neither managers nor employees find the performance management process valuable. In fact, most say it is a waste of time. Transforming performance management is a business imperative.

Nine out of 10 organizations say performance management is important or critical for driving business growth, according to Brandon Hall Group’s recent performance management research.

But traditional approaches are not working. Almost 70% of organizations are restructuring performance management. Most efforts center around reshaping their approach to employee reviews, which are not the root cause of the problem.

“Collectively, employers have dug themselves a deep hole,” said Brandon Hall Group CEO Mike Cooke. “Neither managers nor employees find the performance management process valuable. In fact, most say it is a waste of time. Transforming performance management is a business imperative. It drives individual and organizational development and employee engagement.”

Failure to change the performance management paradigm leads to stagnant or declining KPIs. It impedes the development and retention of high potential employees who can help the company succeed in a fast-changing business environment in which most of today’s jobs may disappear at the end of the next decade.

“Organizations must aggressively focus on developing more managers who can drive employee performance through meaningful interactions in the flow of work,” said Brandon Hall Group vice president and principal HCM analyst Claude Werder. “Performance evaluations and reviews can remain part of the performance management process if employers choose. But they should be a cumulative summary or analysis of the outcomes of the day-to-day developmental relationships between managers and employees.”

A majority of respondents to the 2019 Brandon Hall Group Performance Management Study said:

  • Their current approach does not increase employee engagement.
  • Their managers are biased in assessing employee performance.
  • The current review process drives less than 40% of an employee’s performance improvement.
  • Their current performance reviews are a waste of time for managers and employees. Almost 70% of organizations are in the process of restructuring their approach to the performance review process.

Brandon Hall Group has published research data, insights and interviews on this topic and created several strategies that get at the heart of the performance management dysfunction. The solutions are a combination of redefining performance management, empowering employees, reducing bias, training, leveraging technology and aligning performance management with additional talent initiatives.

To view a summary of the Performance Management study, click here.

---About Brandon Hall Group Inc.
Brandon Hall Group is an HCM research and advisory services firm that provides insights around key performance areas, including Learning and Development, Talent Management, Leadership Development, Talent Acquisition and HR/Workforce Management.
With more than 10,000 clients globally and 25 years of delivering world-class research and advisory services, Brandon Hall Group is focused on developing research that drives performance in emerging and large organizations, and provides strategic insights for executives and practitioners responsible for growth and business results.
At the core of our offerings is a Membership Program that combines research, benchmarking and unlimited access to data and analysts. The Membership Program offers insights and best practices to enable executives and practitioners to make the right decisions about people, processes, and systems, coalesced with analyst advisory services which aim to put the research into action in a way that is practical and efficient. (http://www.brandonhall.com)

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