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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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
Elevating Performance
Improve performance outcomes with SHRM’s Elevating Performance eLearning program.
Latest News
Performance management is evolving as HR adopts AI tools for goal setting and feedback. See how these tools can increase efficiency and drive better outcomes.
For most organizations, performance reviews are used to support decisions related to training and career development, compensation, transfers, promotions, and reductions-in-force or employment termination. Generally, the performance review process includes setting clear and specific performance expectations for each employee and providing periodic informal and/or formal feedback about employee performance relative to those stated goals.
Use this customizable qualitative evaluation form to streamline your annual performance appraisal process and generate consistent data-driven insights.
Running a culture audit helps HR leaders assess workplace values, behaviors, and alignment. Use this step-by-step guide to strengthen your organization’s culture.
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.
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Member Resources
Enhance your performance management system with actionable guidance on reviews, improvement plans, and legal considerations for HR leaders.
Determine when and how to use a performance improvement plan (PIP) to improve employee performance, document progress, and promote fair outcomes.
Progressive discipline policy and procedures can provide a structured corrective action process.
Use this quick guide to learn what you need to know about performance appraisals.