That, the theory runs, will keep both boss and worker more closely aligned on getting the job done right, and will build a better relationship in the process.

Among the details turned up by the survey:

63% of North American companies say their performance management programs are not effective
74% say their managers and employees are dissatisfied with the process
50% say workers and managers don't spend enough time on performance management
92% are going to keep doing them in one form or another
29% are either planning to or are considering eliminating them
50% said they have either changed or eliminated the annual performance review cycle in favor of more frequent interactions between employees and managers, or are planning or considering this change

But will changing the process without changing the people involved work? Not necessarily. Check this out:

64% of respondents don't believe their managers and supervisors have the necessary skills to conduct a decent performance evaluation
56% report a lack of effective feedback
51% think managers don't have the time to do performance management well

“For many organizations, performance management as we know it today is not working. These programs haven't delivered on their promise to improve performance, and there are widespread signs of frustration among managers and employees,” said Laura Sejen, a managing director in the Talent and Rewards practice at Towers Watson.

“Employers recognize the importance of these programs and that significant changes, not tweaks, are needed. That said, most employers believe scrapping performance management programs, including the use of performance ratings, is not the solution.”

Instant Insights /

Performance Reviews Need Fixing: Towers Watson

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