New Study Reveals Only 45% of Organizations Report Effective Performance Management Processes

The latest HR study reveals that only 45% of organizations report their performance management processes effectively meet critical outcomes to a high or very high degree. These outcomes include meeting organizational PM goals, improving employee performance, enhancing employee development, and providing better legal protection. HR.com's HR Research Institute has unveiled a new research report exploring the current state of PM practices, highlighting key trends and strategies for improving performance management efforts today and in the future.

The research underscores the challenges many organizations face in achieving effective PM plans while also spotlighting areas where positive strides are being made. These findings indicate there is still much room for improvement in performance management processes across the board. However, the future of PM looks promising as organizations have shown increased efforts in key performance leadership areas over the past two years, including more frequent one-on-one meetings with managers (41%), greater employee input into performance goals (36%), and managers aligning employee goals with business objectives (36%).

Organizations that excel in performance management demonstrate significant advantages: they are over twice as likely to have leaders who view PM as crucial for improving performance, almost twice as likely to use digital technology for PM to a high or very high degree, and over 1.5 times more likely to provide training to managers for PM. Further analysis highlights the widespread adoption of digital technologies in performance management, with 84% of organizations using these tools, yet only 42% apply them to a high or very high degree. This gap suggests that while technology is being integrated into performance management processes, many organizations still struggle to leverage these tools effectively.

Debbie McGrath, Chief Instigator and CEO of HR.com, stated that continuing these positive advancements, especially with performance leadership efforts, will be key for future performance management success. She emphasized that applying the right automation is essential for meeting organizational goals, enhancing employee performance, and fostering better employee development. The full research report, available at https://hr.com/hrresearchinstitute, offers detailed insights and actionable recommendations for HR professionals looking to build more efficient and effective PM initiatives. The recording of the research webcast presentation is also available for viewing on demand, providing additional resources for organizations seeking to improve their performance management strategies.