Why Employees and Leaders Disagree on Performance Management
Few workplace processes attract as much criticism as performance management. A recent report from Betterworks, called the State of Performance Enablement, found that 44% of individual contributors rate their organization's performance management system as unsatisfactory, while only 12% of managers and HR specialists share that view. This disconnect between frontline employees and leadership highlights a fundamental communication challenge in how performance practices are understood and applied.
The Shift Toward Performance Enablement
The performance enablement concept, developed by talent management experts Edie Goldberg and Alan Colquitt, seeks to systematically support employees through clear goal-setting, ongoing feedback, coaching, and development opportunities. The model rests on three pillars: direction and goals, coaching with continuous feedback, and steady professional growth. In their book Performance Enablement, published by Oxford University Press, the authors expand this framework into eight guiding principles and four key practices.
For companies ready to adopt this approach, the recommended path includes six steps: evaluating the current process, aligning goals, embedding regular feedback loops, training managers as coaches, tying development to performance, and continuously measuring and improving the system.
Research from Gallup indicates that organizations making strategic investments in employee development enjoy 11% higher profitability and stronger retention rates. Deloitte similarly found that companies investing in learning are 92% more likely to introduce innovations through new products or processes.
To gauge whether performance enablement is working, HR teams should monitor metrics such as check-in frequency, feedback quality, employee engagement, retention, goal progress, and underlying business outcomes. A range of software platforms can support this model, including Betterworks, 15Five, Leapsome, Lattice, and Culture Amp. Pricing varies: Betterworks offers custom quotes on request, 15Five ranges from $4 to $16 per user per month, and Lattice costs between $4 and $11 per seat per month depending on selected modules.
Ultimately, performance enablement marks a departure from traditional performance management by prioritizing continuous employee support over periodic evaluations. HR professionals play an essential role in coaching managers, aligning individual objectives with company priorities, and connecting development efforts with performance results. Implementing this system can significantly boost organizational effectiveness, raising both engagement and productivity.
The wide gap between employee and leadership views on performance management underscores the urgent need for better communication and feedback practices inside organizations.
Adopting performance enablement could be a pivotal step toward addressing those challenges. With stronger support systems and clearer growth pathways, employees are more likely to feel invested in their work—and that, in turn, can drive the higher productivity and satisfaction that companies need to compete effectively today.
As organizations strive to enhance their performance management systems, it's crucial to recognize the broader implications of employee engagement on the economy. Recent studies reveal that a decline in engagement could lead to significant financial repercussions globally. To understand the potential economic impact of disengaged employees, explore how a projected $10 trillion loss could affect businesses and the workforce.