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Performance management isn’t performing

The employee behaviors that performance reviews intend to promote are important drivers of development, engagement and success. Although companies have addressed poor performance results by reinventing their performance management process, they have been routinely disappointed. This has caused employees and managers to perceive performance management as bureaucratic, costly and of low value.

The cost of failed performance management

Failed performance management systems demotivate employees, costing organizations millions of dollars annually in lost employee productivity, which, in turn, hurts overall corporate performance.

Calculate how much ineffective performance management approaches cost you.

Performance management: A new approach

The best companies are shifting away from rigid systems toward a more flexible approach that reinforces the critical behaviors that matter every day, and aligns individual work with organizational goals.

Effective performance management includes providing meaningful, real-time feedback; ensuring that employees have clear expectations; and coaching employees to achieve their maximum performance levels. 

Infographic: Put Performance Back Into Performance Management

Employees are less satisfied with performance reviews than ever. Even high performers find them unhelpful and uninspiring. Learn three shifts companies must make to significantly improve performance management.

Infographic: The Real Impact of Eliminating Performance Ratings

Managers expect removing ratings to improve employee performance, and companies have received some positive feedback from employees after doing it. However, the initial positive reaction tends to fade after the first performance review cycle.

Article: The Real Impact of Eliminating Ratings

Download the article and learn why you may want to keep performance ratings.

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Real Impact of Eliminating Performance Ratings

Companies expect that removing ratings will improve employee performance, but our data reveals otherwise.

Performance Management Can Be Fixed

Increase performance management satisfaction and results with our five-step reform process.

Put “Performance” Back into Performance Management

Improve performance management by tightly linking performance management processes and organizational objectives.

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    ReimagineHR 2018

    Learn more about the issue of employee performance and how other organizations are achieving improved outcomes. Network with leading CHROs and HR leaders, hear from HR experts, get one-on-one guidance from Gartner analysts and explore new solutions.

    Gartner's Performance Management Expert

    Brian Kropp

    Group Vice President,
    Gartner Research

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    Related Content


    NPR: Yay, It's Time for My Performance Review! (Said No One Ever)


    Harvard Business Review: People Don't Want to Be Compared with Others in Performance Reviews. They Want to Be Compared with Themselves.


    Fast Company: Why Eliminating the Annual Review Caused a Drop in Performance

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