ROI Unlocked: The Magic of Manager-Led Performance Management

Traditional performance management approaches are failing both managers and employees. These outdated systems rely on infrequent or context-free evaluations delivered long after projects conclude, creating a disconnect that leaves both employees and managers dissatisfied. In fact, almost half (43%) of HR professionals say their organization does not provide sufficient training or resources to people managers for performance reviews, according to SHRM's Effective People Managers report. 

Kris Snyder, CRO of Ninety.io, believes the problem isn't a lack of desire to succeed on the part of managers or employees. Most want to be held accountable and to achieve. What they lack are the tools and opportunities to do so. "Build a performance management system that lets them be accountable," Snyder said. 

The ROI Case for Manager Training

The cost of poor performance management is measurable on a global scale. Last year, declining employee engagement cost the world economy $438 billion in lost productivity, and manager disengagement was identified as the primary driver, according to Gallup's State of the Global Workplace report. 

Since the pandemic, managers have been stretched between rising executive demands and shifting employee expectations. Snyder says that when managers lack the right tools, they disengage — dragging down team morale, productivity, and performance.

The Shift to Continuous Performance Management

Organizations are increasingly moving from annual reviews to continuous feedback models. According to Snyder, this shift requires managers to adapt by conducting regular check-ins, leveraging data and technology tools, and focusing on forward-looking feedback. "Have a meeting pulse. Maybe weekly as a team and then biweekly 1:1s — but create a consistent loop for goals, metrics, and feedback," he explained. 

Snyder says that sustaining the shift to continuous performance management requires support in three areas:

• Transparent Communication: Managers require consistent feedback from their own leaders, along with clear channels to gather and respond to input from their teams. This two-way flow builds alignment, accountability, and trust across the organization.
• Ongoing Support: Continuous learning opportunities, relevant tools, and dedicated time for skill-building are essential to help managers sustain performance management practices over the long term.
• Role Clarity: Managers need a clear understanding of their responsibilities, including concrete deliverables such as providing regular performance updates for their teams, as well as the leadership characteristics expected of them.

Toolkit: Coaching in a Business Environment

Building Performance Management Capabilities

"We use core values, purpose statements, and big, directional goals to align how we behave and where we're going," Snyder said. But alignment isn't just philosophical — it depends on what managers do every day. Here are the top five areas executives most want their people managers to strengthen, each linking directly to measurable improvements in people outcomes, according to SHRM's Unlocking Organizational Potential with People Managers report:

1. Coaching and Mentoring (54%): Regular coaching conversations help employees see a path for growth, which boosts motivation and retention compared to infrequent, formal reviews.
2. Effective Communication (53%): Frequent, clear communication reduces confusion, ensures alignment, and creates the trust that is essential for strong manager-employee relationships.
3. Performance Feedback (47%): When managers balance recognition with constructive input, employees feel valued and supported — a key driver of both engagement and performance improvement.
4. Conflict Resolution (42%): Addressing issues early prevents escalation, preserving team cohesion and psychological safety while reducing turnover caused by unresolved tensions.
5. Strategic Thinking (37%): By connecting individual contributions to organizational objectives, managers give employees a sense of purpose that drives commitment and discretionary effort.

Consistent use of these five capabilities elevates both individual performance and team resilience, creating a direct line to lasting organizational success.

Qualification: SHRM People Management Qualification

Measuring Success 

Snyder explained the need to avoid a "gotcha" culture by giving managers clear expectations regarding their role in performance management and by using a holistic approach to assess if they've met them. 

"If you only look at the numbers, you miss the story behind performance, and if you only listen to the stories, you miss the scale. You need both quantitative and qualitative measures to truly understand whether performance management is working," Snyder said.

Quantitative results such as employee retention, internal promotion rates, productivity levels, and engagement scores provide the outline of the picture. Meanwhile, employee feedback on manager effectiveness, teamwork dynamics, and overall satisfaction captured through pulse surveys and focus groups adds the shading and color.  

The People Manager Effect

Performance management is an investment. It has the potential to strengthen talent pipelines, reduce costs, and foster cultures that attract and retain top talent. The key is involving the people who have the power to actualize that potential. "You can have the best-designed performance management framework, but without people managers to carry it forward, it will never shape culture or accountability," Link said.  

In today's environment, adaptability defines success. "Culture and performance management are forever work," Snyder said. Organizations that embrace this mindset, treating performance management as an ongoing drive of accountability and growth, will be the ones that thrive in the future of work.