As burnout rises and employee expectations shift, traditional performance management systems are struggling to keep pace, and organizations are having to rethink how they evaluate and support their employees. To address this disconnect, McLean & Company, a leading HR research and advisory firm, has released Redefine Performance Management, a research-backed blueprint designed to help HR leaders develop a tailored approach to performance management that supports their organization’s unique context and goals in a way that is both strategic and human-centric. Anchored by a practical, three-step framework, the research empowers organizations to foster healthy performance conversations centered on growth and development, build psychological safety, and align employee development with broader business perspectives.
The firm reports that despite its long-standing role in the workplace, performance management systems remain a challenge, either by being too rigid and process-heavy or by lacking meaningful engagement with employees. For example, according to McLean & Company’s 2024 HR Management and Governance Survey, while 65% of HR professionals believe performance management is critical, only 25% say their current systems are effective. McLean & Company explains in Redefine Performance Management that outdated practices result in disengagement, misalignment with business objectives, and ineffective talent development. In contrast, a well-designed performance management framework enables organizations to set clear expectations, foster ongoing dialogue, and build a high-performance culture that supports both individual and company-wide success.
“An overemphasis on process is where many performance management frameworks fall short; organizations must also explore the human experience behind performance management,” states Grace Ewles, director, HR Research & Advisory Services at McLean & Company. “Process should not come at the expense of people. Our research helps HR leaders strike the right balance to drive both success and employee engagement.”
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At the core of the research is McLean & Company’s three-step framework, which walks HR leaders through:
- Defining a performance management philosophy that reflects company culture and strategic objectives.
- Designing the framework’s core elements, including expectations, evaluation methods, and feedback practices.
- Launching and iterating based on employee and leader feedback to ensure long-term adoption and success.
This deliberate yet flexible approach addresses common pitfalls, such as low transparency, misaligned goals, and disengaged employees, while supporting meaningful coaching and continuous development. The blueprint makes a compelling case: organizations that embed human-centric practices like psychological safety, clear expectations, and regular feedback are significantly more likely to see improved engagement, retention, and business outcomes.
For HR leaders seeking to revamp their performance management practices, Redefine Performance Management provides a practical, research-backed roadmap to building a sustainable and effective system. To support implementation, McLean & Company offers a dedicated workshop to help HR leaders apply the framework in their own organizational context.
Source: PRNewswire
