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Performance Management

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

2026 TRENDS

AI-Powered Performance Management in 2026

Outdated reviews are giving way to data-driven, personalized insights that elevate employee performance. Discover how top organizations will harness AI for actionable, meaningful feedback — and explore all seven 2026 trends to keep your team ahead.

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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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Feature
How to Protect Authenticity as AI Changes Workplace Appreciation

AI is reshaping recognition. HR leaders must balance automation and authenticity to keep appreciation meaningful and human at its core.

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Performance-Based Assessments Beat Knowledge Tests in Evaluating Employee Learning

A new study found that talent development practitioners believe performance-based assessments are more effective at measuring employee learning outcomes than knowledge tests.

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Why Week One Matters More Than You Think

Week one plays a critical role in how new hires perceive your organization. This culture first onboarding guide shares practical ways to create a first-week experience that builds connection, confidence, and belonging, starting day one.

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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