U.S. performance management falls behind other countries

As U.S. employers continue to practice outdated employee performance management policies, other countries are engaging in policies that are more highly related to market performance, according to a new study by the Institute for Corporate Productivity.

The study reveals U.S. respondents still practice performance management techniques that have led to frustration and a loss of focus; however, Russia and Brazil are implementing new policies bearing in mind past mistakes. 

U.S. respondents are less likely to practice performance management across each organizational level. Instead, U.S. respondents tend to focus on performance management to individual contributor-level employees, and they are 35 percent less likely to carry out performance management with executives, even though that has a high correlation with market performance.

Foreign respondents typically provide more training for supervisors in effective performance management, and only 34 percent of U.S. respondents handle low performers while 46 percent of respondents in Brazil and 41 percent of respondents in Russia address low performers through targeted development plans, probationary periods, terminations and transfers.

In Brazil and Russia, individual goal accomplishment is considered a top indicator of success, but that is not true for U.S. respondents. Rather, U.S. respondents consider performance review completions rates as their top measurement of success.

U.S. respondents are also less forward-focused when it comes to goal setting and implementing development plans than respondents from Brazil and Russia and tend to prefer establishing performance ratings, which is considered a more passive approach.



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