Broken performance management systems

by | Aug 6, 2015 | Employee Management, Our Blog | 0 comments

performance-managementCompanies everywhere are trying to renovate their performance management systems. However, too many leaders rely on convoluted HR Processes and outdated rating systems that lead to disengagement of managers and employees. While it is imperative to evaluate performance, many need to understand that effective performance management requires much, much more than just metrics and rating systems.

A recent Gallup report, State of the American Manager: Analytics and Advice for Leaders reveals that companies that hire managers based on their talent for the position see a 48% increase in profitability, a 22% increase in productivity, a 30% increase in employee engagement scores, a 17% increase in customer engagement scores and a 19% decrease in turnover.

Talented managers are better at leading, motivating, and engaging their employees, and in turn, achieve stronger outcomes. For leaders seeking to revitalize their overall company approach, a talented manager is a good place to start.

Some more interesting findings of the Gallup report:

  • The majority of managers with high talent (61%) say they leverage and develop their employees’ strengths or positive characteristics when managing, compared with just 5% who say that they correct employees’ weaknesses or negative characteristics. 35% place equal emphasis on employees’ strengths and weaknesses.
  • 69% of employees who strongly agree that their manager helps them set performance goals are engaged, compared with 8% engagement among employees who strongly disagree with the statement.
  • Gallup analysis from 2013 shows that 50% of employees who strongly agree that their manager holds them accountable for performance were engaged, compared with 3% who strongly disagree.
  • Only 12% of employees strongly agree that their manager helps them set work priorities, and just 13% strongly agree that their manager helps them set performance goals.


For assistance in creating an effective Performance Management System, or assistance with hiring talented managers for your organization, call Alternative HR at 717-855-5589.