Traditional approaches to performance management still dominant within organisations.

Despite the spotlight on performance management during the past year, the latest research from global professional services company Towers Watson suggests just 36 percent of companies in the UK consider their performance management process to be effective. In addition, one in three managers and employees are shown to be dissatisfied with their performance-management process. The EMEA performance management survey conducted by Towers Watson also found 87 percent of companies surveyed said performance management is their primary method for aligning individual performance objectives with strategic business priorities yet 45 percent say managers don’t see the value in it and 53 percent say managers don’t have the time to do it well.

Radha Chakraborty, Director at Towers Watson said: “These findings will not surprise many people, but they do highlight the important gaps that companies will need to address if the effectiveness and perceptions of performance management are to improve. It’s clear that a fix is required, particularly if we consider the importance of the process to business performance. The research shows that most organisations in the UK will continue to evolve their performance management approach through targeted changes including automating the process through technology. ‘Traditional’ approaches to performance management are still dominant with over three quarters of organisations in the research operating a once or twice-yearly process and 66 percent citing the primary outcome of the process being a single rating or score.

Radha continued: “Performance management has hit the headlines recently with several organisations announcing changes to their plans. However, this research suggests although some organisations are making more significant changes to their existing approach, these changes are not necessarily on the scale, or in the direction anticipated by recent articles on the topic.The research also indicates that under 10 percent of companies have scrapped performance management altogether, or are planning to do so. And although 30 percent of companies are considering eliminating performance ratings or scores, just 7 percent have already taken the step to do this.

Radha states: “The headlines are a perfect catalyst for reconsidering the tools and approaches we use to manage employee performance. Clearly, we have an opportunity to make a business impact by reshaping the delivery of performance management. How we do that must align to the culture, as well as the priorities of the business. If we do this in a way that is efficient and effective for managers and employees to execute, then all the media hype will have had a positive impact.”