It's that time of the year again; performance reviews are all we can think about. Everyone is jittery, and the tension is high. Employees are looking to their managers for bonuses, while leadership is focused on growth. Understandably, the manager who has to balance these expectations may get a bit stressed.

But why is it so stressful for employees? Surely the past year has seen targets met and support given where there have been challenges, right? However, that doesn’t seem to be the case. The Chartered Institute of Personnel and Development (CIPD) found that 90% of participants are unhappy with the performance review process. Some even say it is time to do away with performance management altogether.

Why Performance Management?

Despite some employees finding it stressful organisations are committed to the practice for a reason. Performance management allows for both external and internal stakeholder focus:

• External focus considers the value added to customers, investors, and communities, all of which are vital for the success of the organisation.
• Internal focus considers the organisation's performance in meeting client expectations as well as individual performance and growth.

However, it seems to be a challenge for organisations. Gartner reports that 86% of organisations are not happy with their performance management process, and Mercer found that 44% of organisations have changed their performance management process in the last two years. A better understanding of employees’ experiences with performance management may provide some insights.

Employees' Experience

Ongoing research on employee experience with performance management shows that:

1. Satisfaction increases when performance reviews include clear goal setting and alignment with organisational objectives. Employees are motivated when they can see their work contributes to the organisation’s goals.
2. Regular feedback is preferred over annual reviews. Receiving feedback in real-time helps employees adjust as needed and reduces anxiety about the annual review.
3. Constructive, specific, and actionable feedback is crucial. The focus should be on improvement rather than mere criticism.
4. Emphasis on employee development and career growth rather than solely on rewards leads to higher satisfaction. Employees value knowing they have a future with the organisation.
5. Fair and objective evaluations are critical for employee satisfaction. Perceived bias or subjectivity can significantly decrease satisfaction and destroy trust in the process. Lack of clarity can lead employees to draw negative and often inaccurate conclusions.

Reviewing the above, it seems that much rests on the relationship between the employee and their manager. This places a responsibility on managers to foster positive relationships with their employees. However, no relationship is one-way. The employee also has an equal responsibility in the relationship and must actively work to improve their experience with performance management.

The Role of the Employee

A more balanced approach is needed in performance management. Here are some thoughts on how employees can ensure they have a positive experience:

1. Clarify Expectations: Performance management starts with a clear understanding of the organisational purpose. Employees should seek clarity by asking questions about these expectations. It’s important to agree with the manager on what needs to be achieved. Additionally, employees should express their own aspirations and expectations. A healthy discussion can pave the way for better understanding and alignment.
2. Focus on Performance Measures: Performance management should emphasise individual development and learning. Employees should discuss their growth goals and on-the-job learning opportunities. Taking ownership of their own growth helps create the future they desire, requiring alignment with the manager on learning priorities.
3. Engage in Meaningful Conversations: Effective management relies on meaningful conversations. Employees must be willing to share their thoughts and ideas. Rather than waiting for the performance review, employees can request feedback throughout the year, especially when facing challenges. Managers can provide timely insights that make a difference to performance.

Why Individual Growth Matters

Effective performance management contributes to both individual learning and organisational development by enhancing the organisation’s capabilities. These capabilities shape the organisation’s identity, character, reputation, and market standing. Through a combination of individual and organisational learning, value is created for all stakeholders.

Employee Initiatives

Employees can take several initiatives:

1. Be Honest About Your Goals: Understand why you are working at the organisation. Show trustworthiness and a willingness to take on more responsibility by excelling in your current role and assisting others.
2. Ask for and Listen to Feedback: Seek feedback to understand your value and identify areas for improvement. Jointly seek solutions with your manager when there is no stress around performance reviews.
3. Take on More Responsibility: Growth is about taking on more responsibility and finding better ways to perform your job. Support organisational initiatives and step up during challenges.

Conclusion

Performance management should not be a process that employees fear. It should ensure everyone is focused on the same goals, remove roadblocks, and promote individual growth. It should be a time to review and celebrate success and discuss next steps. The employee and the organisation grow together in a mutually beneficial relationship. Remember, no individual succeeds alone, just as no organisation can succeed without its employees.

This article is based on research conducted by 21st Century, one of the largest remuneration consultancies in Africa. Please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. for any further information.

Written by:

Dr Lynne Derman, Head People and Talent, This email address is being protected from spambots. You need JavaScript enabled to view it., B.A. (Hons) Psychology, Masters – Personal, Interpersonal and Professional Leadership, PhD in Leadership, Performance and Change topic of thesis – Organisational Energy and individual Wellbeing.

About 21^st Century:

21st Century, a level 2 BBBEE company, is one of the largest Business and People Solutions consultancies in Africa, specialising in sustainable business solutions and underpinned by exceptional Analytics and Research capabilities, with a team of more than 60 skilled specialists, servicing over 1700 clients – including non-profit organisations, unlisted companies, government, parastatals and over two-thirds of the companies listed on the JSE. 21st Century offers bespoke business and strategy planning services, operating model and organisational design, creative reward practice modelling and market data, change, stakeholder and culture management, training courses and comprehensive human capital and talent plans. 21st Century continues to offer solutions via a combination of virtual channels and on-site presence. 

21st Century has 5 business areas, focussing on: Remuneration and Reward; Organisational Design; Change Management; People & Talent and Analytics.

21st Century has both national and international capabilities. We offer full-spectrum Human Capital services to sub-Saharan Africa & Middle East clients, and as the African representative of the GECN group (www.gecn.com)  have access to expertise on every continent around the world.

For more information visit: www.21century.co.za or contact us at (011) 447 0306

Or contact Craig Raath Executive Director at This email address is being protected from spambots. You need JavaScript enabled to view it.

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