Only 36% of employers in the UK consider their performance management process to be effective and one in three managers and employees are dissatisfied with it, according to a survey from Towers Watson. The survey also found that 87% of employers use performance management as their primary method of aligning individuals’ performance objectives with strategic business priorities. However, 45% report that managers fail to see the value in the process and 53% say that managers do not have the time to do it well.
Traditional approaches to performance management dominate; 66% of respondents to the research typically use an approach based on a discussion once or twice a year and the issuing of performance ratings or scores. Although almost a third of organisations are considering scrapping performance ratings, only 7% have already taken steps to do so.
Radha Chakraborty, director at Towers Watson, said:
‘It’s clear that a fix is required, particularly if we consider the importance of the process to business performance . . . 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.’