Upfront: Employee Performance Stagnates

If your company has implemented a formal program in recent years to boost workforce performance and yet underachievers don't seem to be gaining ground, the problem is probably not a figment of your imagination. According to a recent study by Watson Wyatt Worldwide, although HR initiatives may improve traditional functions such as performance appraisals and pay decisions, most do not accomplish their primary goal -- to improve employee performance. And workers recognize this failure, even when management does not.

According to the survey, only three out of 10 U.S. employees believe their company's performance management program is successful. Eight out of 10 respondents said their company does not help poor performers improve, and fewer than half said their employer's workforce-performance policies establish clear goals, generate honest feedback or effectively capitalize on technology.

The survey also found that only 54 percent of workers think their company sets high performance standards, and only 44 percent feel that people are held accountable for how well they do. Just 19 percent of workers believe their company deals effectively with poorly performing employees.

What should companies do to confront problems with their performance management process? They should get rid of jargon and make sure their HR processes use the language of the business. They should recognize star performers and confront poor performers as soon as possible (no later than their next formal review). And they should rely on automation rather than paper forms because technology can improve HR processes. The right systems help reengage managers and employees who have grown weary of burdensome performance management practices.