Managers aren’t happy either, with 95% of them saying they’re dissatisfied with the performance management process in their organization. Culture Amp data shows that only 20% of employees strongly agree that their performance is managed in a way that actually motivates them to do outstanding work. “How do we as leaders actually help them get there?” How to improve performance management (and reduce anxiety) in your own organizationĮverybody stands to gain from solid performance management, yet organizations struggle to do it well. “It’s an opportunity for us to start talking about what the future holds for our employees,” she says. Rachael adds that, while performance reviews are a solid opportunity to reflect on the things employees have achieved, they’re not exclusively focused on what’s already happened – they’re a chance to look forward, too.

Job satisfaction: Employees are 3.6x more engaged when they have a voice in setting their own goals and aligning them to the company initiatives.

A fair and thorough process reduces bias and increases fairness, which can ease employee fear or apprehension.

Promotions and pay: Performance management plays a huge role in decisions about advancement and compensation.

Culture Amp research shows that employee productivity increases by as much as 56%. Improved performance: Adequately managing performance gives employees a boost.Performance management isn’t something you do once and check off your list – it requires constant commitment from managers and employees. “If it’s done correctly,” Rachael adds, “It should be an enjoyable process for everybody involved.” Why does performance management matter? How are you celebrating, enlightening, supporting, and guiding your employees? “Performance management, when done right, is about every conversation that you’re having with your employee,” Rachael explains. Performance management isn’t about a single step, process, or conversation. “It’s actually a powerful opportunity to identify areas for development which can increase both organizational and individual performance and engagement over time.” “At Culture Amp, we see performance management as much more than just a formalized process for measuring employees,” Tony says. People think of it as a process that’s only meant to address and manage poor performance, but there’s a positive side, too.

Performance management has negative connotations.

In the second session of our “Back to Basics” webinar series, Tony Tran, Lead People Scientist here at Culture Amp, and Rachael Cook, Chief Executive Officer at Inclusee, discussed how leaders can reduce the stress of performance reviews so everybody can use that look back to move forward. Organizations can change that perception. To some employees, they may feel like a structured form of criticism rather than an opportunity for learning and support. Yet performance management – and more specifically, performance reviews – can trigger a lot of anxiety for everyone involved. It’s a system leaders can use to set expectations, align visions, and develop employees. That’s the crux of the performance management process. Getting there requires some effort – not just from the employee, but also from their manager and the entire company. The success of your organization hinges on your people, so understandably, you want them to be at their best.

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