New Study Reveals Gaps in Performance Management Effectiveness
TL;DR
Organizations with effective performance management are 2X more likely to use digital technology, giving them a competitive advantage.
The HR study reveals challenges and positive trends in performance management, including the use of digital technology and employee input into performance goals.
Improving performance management processes will lead to better legal protection, employee development, and organizational goals, creating a better work environment.
84% of organizations use digital technologies in performance management, but only 42% apply them effectively, highlighting the struggle to leverage these tools.
Found this article helpful?
Share it with your network and spread the knowledge!
The latest research from HR.com’s HR Research Institute (HRRI) reveals that merely 45% of organizations report their performance management (PM) processes effectively meet crucial outcomes, such as achieving organizational PM goals, improving employee performance, enhancing employee development, and providing better legal protection. This indicates a substantial opportunity for improvement in PM practices across various organizations.
Despite these challenges, the study identifies positive trends in performance management. Over the past two years, organizations have increased efforts in key performance leadership areas, including more frequent one-on-one meetings with managers (41%), greater employee input into performance goals (36%), and better alignment of employee goals with business objectives (36%).
Organizations that excel in performance management are notably more likely to have leaders who view PM as essential for improving performance, use digital technology for PM to a high degree, and provide training to managers for PM. Specifically, these organizations are over twice as likely to prioritize PM for performance improvement, almost twice as likely to leverage digital tools effectively, and over 1.5 times more likely to provide comprehensive PM training to managers.
While 84% of organizations have adopted digital technologies in their PM processes, only 42% apply these tools to a high or very high degree. This gap suggests that many organizations still struggle to utilize digital technologies effectively, underscoring the need for better integration and application of these tools to enhance PM outcomes.
Debbie McGrath, Chief Instigator and CEO of HR.com, emphasized the importance of continuing advancements in performance leadership and the application of appropriate automation to meet organizational goals, improve employee performance, and foster better employee development.
The full research report, HR.com’s Future of Performance Management 2024-25, is available for free download and offers detailed insights and actionable recommendations for HR professionals aiming to build more efficient and effective PM initiatives. Additionally, the research webcast presentation, The Evolution from Performance Management to Performance Leadership, is available for on-demand viewing.
Curated from Newsworthy.ai
