Performance Management Underperforming

Only three out of ten US workers agree that their company's performance management program actually does what it's intended to do: improve performance. So says a recent survey by human capital consulting firm Watson Wyatt.

Even fewer - two out of ten workers - say their company helps poorly performing workers improve, although performance management programs do better at more traditional functions such as appraising performance and assisting with pay decisions.

The survey of 1,190 workers found widespread cynicism about systems. Whereas a majority of employees feel their own performance appraisal is accurate (61%) and that employees with better reviews get better raises and bonuses (54%), less than 40% agree that the system establishes clear performance goals, generates honest feedback or capitalizes on technology to streamline the process.

Workers' Views on Performance Management
Aspect of Performance Management		Strongly Agree/Agree
		0%
Program helps poor performers improve		19
Program has helped me improve my performance		30
Program establishes clear performance goals for current year		35
Program does a good job of giving honest feedback		36
Program uses technology to streamline performance management process		38
Program rewards better-reviewed employees with better raises/bonuses		54
I was evaluated accurately in my recent performance appraisal		61

Standard-setting and enforcement are often felt to be lacking. Only 54 percent of workers feel that their company sets high performance standards and only 44 percent that people are held accountable for their performance.

'The survey results clearly indicate that corporate America's performance management systems need fixing', said Scott Cohen, Ph.D., National Director for Talent Management at Watson Wyatt. 'Unfortunately, too many organizations view their performance management programs as 'organizational wallpaper.' They exist in the background and aren't expected to add value'.

Cohen's advice to managers and leaders is as follows:

1. Get rid of the HR-speak and make sure the performance management processes use the language of the business
2. Make the tough decisions. Recognize star performers and confront poor performers as soon as possible but no later than their next formal review.
3. Burn paper forms. User-friendly automation is better, faster and cheaper. Best of all, it helps re-engage managers and employees who have grown weary of burdensome PM systems.

Copies of the survey are available at www.watsonwyatt.com/research/resrender.asp?ID=ONL011&page=1

In tomorrow's DRNO: How the UK's Luton Borough Council doubled response to its employee survey.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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