Picture this: It’s been a year since Sarah’s last performance review.
Sarah sits in her manager’s office, unsure of what to expect.
Her manager, swamped with other tasks, skims through generic feedback from a templated form.
“You’re doing fine, but there are areas to improve,” he says, offering little direction.
The conversation ends with vague promises of future support. Sarah feels undervalued and confused about her next steps.
Unfortunately, this scenario is all too common in workplaces in which performance management is a box-ticking exercise, not a meaningful opportunity for growth and development.
In this article we’ll explore some key barriers to building an effective culture of performance management and how to overcome them:
1. Performance Management is perceived negatively. Instead, talk about Personal and Role Development.
“Performance Management” does not reflect the expectations and aspirations of today’s multi-generational workforce.
Employees from Generation Z, in particular, place a strong emphasis on personal growth, accountability, and career advancement.
LinkedIn’s Employee Wellbeing Report (2023) found that 76% of those surveyed from Gen’ Z, valued “more opportunities to learn or practice new skills”.
Previous generations prized stability, and younger members of the workforce who are coming of age want to be challenged and supported to develop themselves and their roles.
2. Poor frequency of feedback
The days of the 12-month Annual Performance Review are fading as businesses embrace more frequent feedback models.
Such a long period between performance reviews no longer suits businesses in fast-paced industries.
Quarterly, or monthly reviews, even continuous weekly check-ins, supported by digital tools are considered much more effective.
3. Lack of management skills and no training
High-performers may find themselves managing direct reports for the first time as a result of a promotion.
It’s important to support them as they begin their journey as people managers. Provide training and tools to help them manage the performance of others.
Consider buddying them up with a more experienced manager for mentoring. Check in with them regularly to track team performance and ask if they need extra support.
4. Poor quality feedback
Effective feedback requires emotional intelligence, strong communication skills, and the ability to see the bigger picture.
Specifically, managers often lack training in the skills needed to deliver evidence-based feedback that’s constructive and impactful.
Key skills include:
Active listening – Seek to understand the colleague’s point of view before delivering feedback. Be aware of body language, tone, and other emotional signals to enhance understanding.
Clarity & specificity – Be specific about areas of strength and improvement and give examples. Offering only vague recommendations for improvement confuses colleagues and is much less effective.
Confidence & professionalism – Managers need to understand that they have a right to manage. To deliver feedback well is to be confident and assertive, but not overly critical.
Poorly constructed feedback, or feedback considered biased or unfair weakens teams and harms operational effectiveness.
5. Limited employee engagement
People need to feel that they are able to weigh in before they will buy in.
Make the process feel like a partnership by encouraging open dialogue. Share ideas and work together to identify challenges and suggest solutions.
Ask open-ended questions that invite colleagues to reflect on their achievements and challenges.
Offer balanced feedback with a mix of positive points and constructive criticism.
Set goals together and make personal development plans a joint effort.
Fostering a Culture of Continuous Improvement
To drive an effective culture of performance management, organisations must shift focus toward personal and role development, frequent feedback, and management training.
By addressing key barriers—negative perceptions, lack of regular feedback, inadequate management skills, and poor quality feedback—companies can inspire individuals to perform at their best.
Vista also provide market-leading training for managers in this space, check out how we do it for other clients here. Drop us a line if you have any questions, we’d love to hear from you.
Disclaimer: The information and advice provided in this blog are correct at the time of publishing. Employment law is subject to change, and while we strive to keep our content current and accurate, we recommend consulting with one of our legal professionals or checking the latest regulations via official sources for the most up-to-date information. Vista Employer Services is not responsible for any actions taken based on the information provided in this blog.