In Brief: Traditional performance management systems are falling short for both employers and employees. Research cited by Gallup found that only 2% of Fortune 500 CHROs strongly believe their performance management systems effectively drive performance improvement, while Deloitte reports that fewer than one in three employees believe performance reviews are fair or equitable. Together, these findings highlight a growing disconnect between intent and impact, and signal why organizations are rethinking performance management as a potential competitive advantage rather than a compliance exercise.

The average tenure for American workers has been on a steady decline for many years. In 2014, the median employee aged over 25 had been in their role for 5.5 years. By 2024, that was down to 4.8 years. As a result, not all employees are thinking about long-service awards.

360-degree feedback reviews are the HR equivalent of a full-body CT scan. They’re both intensive, highly revealing, and they can make the subject feel a little claustrophobic. But they’re also terrific tools for finding out precisely what makes a person tick.