HIGHLIGHTS FROM THE RESEARCH:
Performance management is not universal, but it is pretty close. Nine out of every 10 organizations have PM processes. Organizations of all sizes tend to have performance management processes, though larger organizations are slightly more likely to have them.
However, only 30% of HR professionals say their PM process results in the organization achieving all of its performance goals to a high or very high extent. That's not great, but there is some good news. This represents a seven percentage point increase over last year, when only 23% rated their effectiveness at achieving organizational goals as high or very high. There was improvement on the opposite end of responses, too. In this year's survey, only 5% rate their organization's ability to meet all PM goals as very low, compared to 15% in 2018. There is no way to know whether this is a trend or just a statistical blip, but it is heartening.
More than three out of five organizations employ technology tools in their performance management processes. A majority (62%) use technology to facilitate performance management, but this is an area where the size of the organization matters. In organizations with 1,000 or more employees, 85% use PM technology tools. In contrast, only 59% of organizations with 100 to 999 employees use PM technology tools, and that ratio drops to 35% among organizations with 99 or fewer employees. Generally speaking, technologies can make performance management easier and more standardized for large organizations, which may otherwise have a difficult time tracking and facilitating the process for 1,000 or more employees.
Has performance management been changing over the last two years? In many ways, yes. Over a quarter (28%) of HR professionals say their organizations have experienced a high or very high degree of change, and another 28% say they've experienced moderate change. Of course, that still leaves a large portion that report there's been little to no change. In contrast to the 28% who described the extent of their PM changes as high or very high over the last two years, 43% expect a high or very high degree of change in the next two years. Of course, some may be overestimating the future rate of change, but this does indicate that many HR professionals see this as an area ripe for change in the near future.
To learn more about The 2019 State of Performance Management survey and to get strategic outcomes and 9 key takeaways from this exclusive HR.com Research Institute research, please read the complete report and infographic here:
