In a survey of 129 major U.S. companies, Hewitt Associates, a global human resource firm, concludes that companies are not using performance plans to determine overall company effectiveness. While they measure employee performance, 84% of those surveyed don't believe employees' goals are fully aligned with company business goals.
To align these goals managers must apply the information from the performance reviews to coach employees. Too often, 73% according to the survey, managers are not skilled at building high-performing teams. And 67% find that managers do not handle poor performance effectively either.
"It comes down to ownership," said Bob Campbell, senior consultant for Hewitt. "Many managers view performance management as an HR program overlaid onto their 'real work,' as opposed to initiatives designed to advance the business. Companies need to provide today's stretched managers with practical performance management tools and support. This will lead to a real payback, as managers will be better equipped to help their teams, company and customers achieve greater success."
