Future Trends in Performance Management 2023

This report examines the evolving landscape of performance management as of 2023. It outlines the significant challenges faced by organizations, particularly a notable decline in U.S. productivity, which dropped by 1.6% in 2022 and further by 2.1% in the first quarter of 2023. The primary objective of performance management has shifted from employee development to improving overall corporate performance, marking a significant change in focus. The report details findings from a survey conducted in the second quarter of 2023, which included responses from 295 HR professionals across various industries. Key findings indicate that many organizations struggle to meet their performance management goals, with a decline in effectiveness noted across several metrics. The report also highlights the increasing importance of structured performance management processes, the role of technology, and the need for manager training. Furthermore, it discusses the perception of performance management among leaders and the implications for employee engagement and retention.