10 Statistics About Performance Management That Will Blow Your Mind

Few things in life produce more moans and groans in the workplace than the mind-numbing, fear-inducing ritual of annual performance reviews. In recent years, there have been calls for companies to free themselves from this burdensome practice. Download the free whitepaper on how Autodesk overcame this problem.

annualperformanceappraisalspain

1.    45% of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work.

2.    CFOs spend at least 40% of their time on business performance management, but they estimate that 30% of their company’s performance potential is lost due to ineffective performance management processes and behaviors.

3.    Only 23% of HR executives think that their PM process accurately reflects employee contributions.

4.    Only 8% of companies report that their performance management process drives high levels of value, while 58% said it is not an effective use of time.

5.    A poll with 2,677 respondents revealed that 98% find annual performance reviews unnecessary. Among the respondents were 645 HR managers, 232 CEOs, and 1,800 other employees.

6.    Only 14% of organizations are happy with their performance management system.

7.    Two-thirds of performance management systems misidentify high performers.

8.    In 2013, most organizations needed a 20% improvement in employee performance, but typical performance management can only improve performance by 5%.

9.    58% of organizations rated their performance management systems as “C Grade or below.”

10.    30% of performance reviews end up in decreased employee performance.

Clearly, something is amiss when it comes to performance management and annual reviews. Do you know the “Difference Between Performance Management and Performance Appraisal“? In fact, given the above statistics, it’s a relatively safe bet to say that performance management in your own company is lacking in some way or not delivering the kind of value you wish it could deliver. Would you like to know how one company successfully overhauled its Performance Management? Click here for a free report.

Don’t Miss These Essential Tools

November 22, 2014   Updated :July 31, 2017   annual performance reviews, performance appraisals, performance management facts   

11 responses to “10 Statistics About Performance Management That Will Blow Your Mind”

  1. […] conversations when a major issue arises is not enough to keep performance problems at bay. In fact, 45% of HR leaders do not think annual performance reviews are an accurate appraisal of employee’s work, and […]

  2. […] 10 STATISTICS ABOUT PERFORMANCE MANAGEMENT THAT WILL BLOW YOUR MIND […]

  3. […] According to some measures, only 23 percent or HR executives think their performance review processes accurately assess employee contributions. Furthermore, only 8 percent of companies believe their performance management processes are driving high levels of value. […]

  4. […] We’re not trying to contradict our first point here, but there is such a thing as too much (and too long of) feedback. Take, for example, the standard annual performance review. Waiting until the years’ end to review every detail of employees’ handy work is insufficient and managers and leadership are bound to miss something. Similarly, if coaches and quarterbacks only communicated at halftime or in time outs, there wouldn’t be enough time in either to avoid total confusion on the field. If that negative wasn’t enough, we’ll do you one more: employees anticipate this long performance review with what is often little enthusiasm. In fact, an astounding 30% of performance reviews end up in decreased employee performance. […]

  5. […] 45% of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work. And it’s […]

  6. […] Here are some depressing statistics for you: only 14% of organisations are happy with their performance management system and 30% of performance reviews actually end up in decreased employee performance. (source: TalentManagement360). […]

  7. […] 10 STATISTICS ABOUT PERFORMANCE MANAGEMENT THAT WILL BLOW YOUR MIND […]

  8. […] Additionally, another 40% of a CFO’s time is spent managing the performance of a company and its employees. […]

  9. […] Additionally, another 40% of a CFO’s time is spent managing the performance of a company and its employees. […]

  10. […] more consistent feedback. In fact, Talent Management 360 reports 45% of HR leaders do not think annual performance reviews are an accurate appraisal of employee’s […]

  11. […] Additionally, another 40% of a CFO’s time is spent managing the performance of a company and its employees. […]

Leave a Reply

Copyright © 2020 TalentManagement360.com and Telania, LLC. All Rights Reserved. Privacy Policy. If you have any questions, contact us here.