Despite dissatisfaction with their performance management programs and attention-grabbing headlines, most North American employers have no intention of eliminating their use of performance ratings.
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Instead, many are making significant changes to fix the overall process, such as replacing annual performance review cycles with more frequent employee and manager interactions, applying a more future-oriented definition of performance and potential, and implementing new technology, according to a survey by global professional services company Towers Watson.
The survey found that less than four in 10 (37%) North American companies say their performance management programs are effective. Additionally, only a quarter (26%) say their managers and employees are satisfied with the process. Half of the respondents agree that employees and managers just don’t spend enough time on performance management.