There’s a significant issue emerging with how businesses manage employee performance. Gallup’s recent research highlights a concerning fact: only 22% of team members feel engaged by their organization’s performance management efforts. This statistic points to a substantial problem with traditional performance management systems—they’re not as effective as we need them to be.

Where are we going wrong?

The Trouble with Old-School Methods

The reliance on annual evaluations is a significant pain point. Summarizing an entire year’s worth of work into a concise review often leaves team members feeling undervalued and misunderstood. Additionally, a disconnect between communicated focus areas and evaluation criteria breeds confusion and frustration. Compounding this issue is a narrow emphasis on weaknesses over strengths, potentially demoralizing team members and hampering their growth.

So, what can you do?

1. Provide More Frequent and Consistent Feedback
Transitioning away from the annual review model to more frequent and consistent feedback mechanisms can significantly enhance performance management. Regular check-ins enable managers to address concerns, acknowledge achievements, and adjust goals in real time. This approach not only supports continuous improvement but also fosters a culture of openness and mutual trust.

2. Communicate Expectations More Clearly
Ambiguity in day-to-day expectations can derail even the most motivated team members. By clearly articulating what you need done and by when, you can empower team members to deliver exact results on their first try. Clear communication around expectations sets a defined pathway for success, reducing uncertainties and enhancing alignment across the board.

3. Perpetuate Mastery
Acknowledging and affirming what team members do well is as crucial as identifying areas for improvement. When giving feedback, specifically point out what was positive. Your team member then knows what to do the next time, as well as all times after that. Pinpointing the small moments of mastery builds a foundation for consistent performance.

4. Prioritize Purpose
Finally, connecting day-to-day activities with the organization’s overarching goals can significantly impact engagement and performance. When individuals understand how their work contributes to a larger mission, they’re more likely to find meaning and satisfaction in their roles. Prioritizing purpose entails not only communicating organizational objectives but also highlighting the essential role each team member plays in achieving those goals.