There is convincing evidence that an effective performance management system—which covers performance goals and objectives, evaluation and feedback, development goals, and rewards—generates a wide range of positive returns to the business and is best for employees’ skills development and career growth. Organizations with good performance management systems in place benefit from improvements in employees’ productivity, motivation, and engagement; timely identification of skills gaps; and a tight alignment between individual and business goals.

In our latest literature review of performance management trends, we identify how the COVID-19 pandemic has led to a major rethink of how to manage performance and a major shift toward hybrid work models.