Report: Performance Transformation in the Future of Work
Key findings
- In the six years since Mercer last published its performance management study little has changed, with the same practices remaining largely in place. This report finds that the theory behind talent strategies is sound, but how they are implemented makes a difference.
- Driving company performance goals was consistently ranked as the number one reason for having performance management. The ability to clearly define what needs to be accomplished will be increasingly important going forward.
- The greatest value comes from performance management feedback that is connected to the employee and their individual learning experiences.
- Eliminating performance ratings does not necessarily create richer feedback. Setting clear goals, gathering meaningful information about performance and ensuring evaluations are fair and equitable is key to a feedback-rich culture.
- An integrated people strategy must combine business priorities with the desired employee experience – this necessitates having a clear career structure in place that outlines the implications of performance on career progression.
The report goes on to offer three predictions on the future of performance management; covering the use of AI, greater flexibility of talent models, and the end of annual merit pay.
