Global Performance Management Report 2023 | The Talent Strategy Group

Talent Management

This newly released report provides insights into the practices organizations use (and don’t use) today in performance management (PM). Based on feedback from over 300 companies worldwide representing all sizes, the practices are organized into five sections: goal settingcoaching and feedback, reviewing, training, and technology. A few findings include: 1) 88% of companies have redesigned their PM in the last four years, and 50% have done so in the previous two years alone. This finding implies that there is still dissatisfaction with PM despite all the investments organizations have made in improving PM over the past several years. 2) 90% of responding organizations use ratings. This finding is especially surprising considering the narrative over the past few years about organizations moving away from ratings. 3) The 5-rating scale remained the dominant choice for ratings, far outpacing the combined users of 3-point and 4-point scales. 4) Nearly 50% of employees are also asked to assign themselves an overall performance rating. 5) Direct reports and peers provide input to results and behaviors at 15% – 20% of companies. 5) Only 17% of organizations force a rating distribution, but more than half engage in some form of rating calibration. 6) 58% of organizations recommend 3 – 5+ performance conversations and 64% of companies link their development planning process to their PM process. Several other findings and insights are provided that can be used as ONE of many inputs for informing an organization’s PM practices.