Why performance management matters

How an effective strategy helps an organisation

Performance management strategies are no secret to HR professionals. However, despite being around for many years now - they still need adjusted and improved on a regular basis.

The ultimate aim of the process is to support a business in achieving its goals through their people, and that's the main theme of this guide!

So, in what ways can an effective performance strategy help an organisation and its people?

Employees are comfortable with what they need to do to succeed
Drives career progression
Help identify skills gaps
Boosts engagement
Reduces turnover, and as a result, recruitment costs
Increases ROI

Despite these benefits, according to a Clear Review survey, 65% of HR Directors put performance reviews on the back burner in 2022.

95%

of HR Managers expressed feeling unhappy with traditional performance reviews.

Gartner

What are employees saying?

80%

of workers are dissatisfied with their performance reviews.

Deloitte

24%

of employees would consider leaving their roles if managers were to provide inadequate performance feedback.

The Harris Group

94%

of employees would stay at their company longer if their employer invested more in their career.

LinkedIn Workforce Learning Report

… and how it saves you money

5 to 10%

increase in productivity when employees understand what's expected of them.

Gallup

44%

better retention in companies with continuous performance processes.

Betterworks