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Performance Management

Aligning employee performance with business goals to maximize output and profitability.

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Performance management isn’t about annual reviews — it’s about creating a system where employees consistently deliver against business objectives. Organizations with effective performance practices see higher productivity, lower turnover, and stronger financial results. By setting clear goals, providing regular feedback, and using performance data strategically, HR leaders can directly impact revenue growth and workforce efficiency.

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Need help linking performance reviews to business outcomes?

Ask a SHRM Knowledge Advisor for proven strategies to improve productivity and retention.

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Key Data & Trends

61%


HR pros report that fewer than half of managers effectively address underperformance or improvement areas among direct reports

43%


HR pros say their organization does not provide adequate training and resources for managers to conduct effective performance reviews

62%


U.S. workers say they receive timely feedback from their manager

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Elevating Performance

Improve performance outcomes with SHRM’s Elevating Performance eLearning program.

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Latest News

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Podcast
Quiet Cracking — The Silent Strain That’s Breaking Workplaces

The silent threat in today’s workplaces isn’t people “quiet quitting,” or doing the bare minimum in their job. It’s employees who stay but are stuck, burned out, and silently disengaging — a newer phenomenon known as “quiet cracking.” Hear the early warning signs HR and people managers often miss and why quiet cracking is harder to spot than traditional burnout.

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Podcast
Using Stay Interviews to Spot Red Flags and Boost Retention

Stay interviews go beyond job satisfaction surveys — they uncover why employees stick around, what frustrates them, and what might send them looking elsewhere. See how HR can make these proactive conversations meaningful to minimize the high expense of turnover.

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Feature
AI Is Transforming the Most Hated Process in HR

AI-powered performance management systems are transforming how HR leaders conduct reviews, reduce bias, and save time while improving employee feedback quality.

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Podcast
Too Much Information? Setting Boundaries for Workplace Gossip and Oversharing

We’ve all heard it: coworkers sharing a little too much or swapping gossip while at the office. These behaviors can create tension, blur boundaries, and impact team dynamics. Learn practical strategies for guiding conversations, maintaining boundaries, and cultivating a respectful, authentic workplace.

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Turn Performance Into Profit

SHRM membership gives you proven tools to link performance reviews to business results — helping you retain top talent and improve productivity.
Become a SHRM Member and transform how your organization measures success.

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Member Resources

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Toolkit
Managing Employee Performance

This article gives and overview and additional resources on performance management.

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How-to Guide
Performance Improvement Plans: When and How to Use Them

Learn how to create a performance improvement plan (PIP) for an employee using this step-by-step guide.

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Policy
Progressive Discipline Policy

Progressive discipline policy and procedures to provide a structured corrective action process

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Viewpoint
What You Need to Know About Performance Appraisals

Use this quick guide to learn what you need to know about performance appraisals.

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Stay up to date with the latest HR news, trends, and expert advice each business day.

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