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What Are the Surprising Blind Spots in Performance Management?

You have taken the feedback from all stakeholders. Created multiple drafts, burnt the midnight oil, went through multiple versions, and finally launched your company’s much-awaited Performance Management System.
Post the rollout, the feedback is not what you expected. Ok, no process or system is perfect and is expected to please all. However, some surprises are in store for you as the process rolls along. From nowhere, blind spots emerge.
Let’s dive into data and then look at some facts as to why these blind spots emerge in Performance Management System you have designed.

Only 14% of employees are happy with their performance review

 

Gallup’s survey a few years ago on performance reviews threw up some interesting findings.

  • Only 14% of the employees are of the opinion that performance reviews help inspire them to improve
  • Only 2 in 10 employees (20%) believe their performance is managed in a way that motivates them to do great work
  • 74% of the employees receive a performance review once a year or less often

 

What’s more, the Performance Review process of the front-line workforce in many FMCG, FMCD, and BFSI sectors is even more scattered. Due to the vast geographical spread, attrition, and residency of the frontline employees and managers in these sectors, the performance management process throws up many more blind spots. 

Let’s dive into data and then look at some facts as to why these blind spots emerge in Performance Management System you have designed.

Only 14% of employees are happy with their performance review

Gallup’s survey a few years ago on performance reviews threw up some interesting findings.
  • Only 14% of the employees are of the opinion that performance reviews help inspire them to improve
  • Only 2 in 10 employees (20%) believe their performance is managed in a way that motivates them to do great work
  • 74% of the employees receive a performance review once a year or less often
What’s more, the Performance Review process of the front-line workforce in many FMCG, FMCD, and BFSI sectors is even more scattered. Due to the vast geographical spread, attrition, and residency of the frontline employees and managers in these sectors, the performance management process throws up many more blind spots. 

Missing the trees in the forests

 

In trying to build a performance picture many miss the small points focusing on the big picture. The big picture always does not tell the complete story. For example, a 20x variation in the performance within the same cohort does not get mapped into the big picture.

 

There are over 7 million frontline workforce employees in FMCG, FMCD, and BSFI sectors. This set of employees sees high-performance variation and high attrition. This impacts both the top line & bottom line of the organization while consuming the largest time of the HR department.

 

What are the reasons for the blind spots in performance management?

 

 Data tells a story that few read the right way. When looked at from standard metrics the data does not reveal the true picture. Once you scratch the surface, the data reveals diverse and complex patterns. A scientific analysis of the data reveals insights that can help build a better performance management model.

 

Not perfect, but fewer and less important blind spots at least.

 

As an HR professional and performance manager, which are the blind spots you find in the performance review processes?

 
You may have contra viewpoints or evidence to support these views. Both are equally important.
 
 Please share.

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