Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast.
While managers commonly set growth objectives for their teams, crafting specific development goals for work and managers can markedly enhance their leadership skills, ultimately improving employee performance and satisfaction. A comprehensive grasp of the elements that contribute to a manager’s development goals is pivotal in maximizing employee potential. This article explores various professional development goals tailored for managers, offering insights into setting objectives that elevate employee productivity levels.
Development Goals for Managers–What is it and Why is it Required in 2025?
Development goals for work act as a guide for managers to create measurable and attainable objectives for their employees. To elaborate, the goals act as a beacon for a manager to set employees’ objectives. The objectives may help to bring about an improvement in their performance, aligned with the company’s plans.
Managers today are navigating an unprecedented leadership landscape—hybrid workforces, rapid AI integration, and shifting employee expectations. Yet, only 44% of managers have received formal training (Business Insider), even as global manager engagement continues to decline.
Research from Gallup shows that 70% of employee engagement is directly influenced by managerial quality. This means that developing managers is no longer a “nice-to-have”—it’s a strategic necessity for organizational health and retention.
According to Gartner, 75% of HR leaders say managers are overwhelmed, and 70% believe current development programs are falling short. In 2025, manager development is not just about improving performance—it’s about sustaining leadership resilience, agility, and trust in an era of constant change.
Key Factors that Lead to the Success of a Manager’s Development Plan
In every organization, managers strive hard for the growth of the company. Ideally, they want employees to operate at their maximum efficiency. To achieve optimum productivity, managers need to understand both development goals for work and their role in guiding employees toward success. These goals provide a clear roadmap for employees and managers alike.
In line with this, we have listed down certain key factors related to professional development goals for managers that they need to be cognizant of.
Clarity – Clarity of the goals helps managers to increase employee efficiency.
Measurable: Measurement of goal achievement helps to set new targets for the employees.
Achievable–When you set measurable, attainable goals for a manager, they will not only bring improvements in his performance but also help the manager overcome his limitations.
Timeline—Managers should be in sync with the project timeline so that team members can give their best to reach them, within the stipulated time.
Reward–When a goal is met, it is important to recognize the achievement and reward your employees. This boosts employees’ confidence and fosters future development.
12 Development Goals for Managers
A goal-oriented manager understands where he is headed. With goals in place, a manager understands exactly what he needs to do to accomplish them and how to guide his team in the right direction. Without further ado, let’s get started with 10 manager development goals. Following these goals may help managers boost employee confidence and increase their productivity.
1. Organize productive meetings
Managers conduct one-on-one employee meetings, organize team meetings, and oversee other group meetings. This means managers must have a thorough understanding of the types of meetings and points of discussion. Here are a few suggestions to help your managers conduct meetings effectively:
Setting pragmatic goals for employees
Establishing regular meeting schedules
Taking detailed notes about project progress
Specifying an action plan to reach the set target
Having constructive meetings can enhance employee enthusiasm as they get a sense that the company values their input.
Active listening signifies being open-minded to non-verbal signals or any form of employee concerns. Thus, managers need to develop active listening skills to not just hear what their team members say but also to understand them. Better listening skills will help managers to learn more from their teams. As a result, they will be able to handle problems effectively, understand the needs of their team, and become more efficient.
3. Employee development
Several employees want to take on leadership positions. Other employees might like to explore another role or gain expertise that can be useful in enhancing employee productivity. Thus, as a manager, you should encourage employees to go beyond their comfort zone.
You must provide employees with an opportunity to learn new skills and grow, in line with the company’s requirements. Effective employee training and development programs can significantly enhance skill-building and productivity
4. Boost team productivity
Productivity goals are often included in managers’ strategic objectives. You may want to consider how your managers set and communicate goals. You would also like to know how they track employees’ progress.
For instance, ask your manager to assess each employee’s contribution toward the overall team productivity. By facilitating regular status meetings, managers can review team progress and ensure that the development goals for work are being met effectively.
These meetings allow managers to identify gaps and take necessary action to boost productivity. Look for positive trends in productivity to gauge an employee’s development.
Implement the Eisenhower Matrix to prioritize tasks—studies show busy managers save 4+ hours weekly when classifying urgent vs. important.
In 2024, 68% of managers used data dashboards to track team health (Source: Gallup). Companies tying leadership metrics to bonuses saw a 30% uplift in engagement (Source: SHRM 2023) Average training hours per manager rose to 35 in 2023, up 15% YoY (Source: LinkedIn Learning)
Setting effective development goals for work is crucial for both managers and their teams. These goals not only drive personal growth but also enhance overall team performance.
By aligning individual development goals with the organization’s objectives, managers can ensure that each team member contributes to larger business goals while also focusing on their personal career development.
When managers support these goals, it creates a culture of continuous improvement, leading to higher retention rates and job satisfaction.
6. Celebrate employees’ efforts and intentions
Great leaders know that the most valuable asset of their business is their employees. Be gracious and appreciative of your team’s efforts, especially when they accomplish a new milestone. Whenever possible, acknowledge your employees publicly so that they understand how valuable and appreciated they are.
Do not take your employees’ contributions for granted as are a valuable part of your company. Hold a companywide meeting where employees can thank each other for the help they received or for going the extra mile. This way, happy employees would contribute to increased productivity and reduced turnover.
7. Offer insightful inputs
Professional development goals for managers can guide managers to set specific objectives for each employee. This way managers can gain a comprehensive insight into an employee’s work style and share the same with the employee. Insightful feedback can help employees to improve their performance.
For instance, managers can ask employees to identify specific goals related to their jobs and meaningful to them. To ensure employees’ suggested goals align with company objectives, a manager can offer better insights and develop action plans, like creating employee guides to reach those goals.
8. Work on networking skills
Managers should develop, practice, and apply networking skills as part of their development goals. Having a fixed daily routine, with the least emphasis on building relationships with employees, can only take you up the rungs of the leadership ladder.
You can gain a great deal of insight into employees around you by building strong work relationships. As a manager, honing your networking skills would not only help you but your team as well. It is therefore certainly worthwhile to explore networking as a key development goal.
9. Increase Retention Rates
To increase the retention rate, employees must be given regular feedback to enhance their productivity–both positive and constructive.
According to a Harvard Business Review study, the optimal ratio between positive and negative suggestions is 5.6 (positive) to 1 (corrective).
To motivate employees and to empower them to work to their optimal capacity, positive feedback should be given often. Having said this, constructive and corrective remedial measures must be provided with equal importance, particularly when an issue needs to be nipped in the bud.
Other techniques that can be part of development goals for managers to increase retention rate can be:
10. Encourage creativity among employees
Many companies claim to value creativity, but they don’t necessarily have policies or initiatives to support it. To Increase creativity, offer rewards for tangible results.
Take employees’ suggestions seriously and implement them if you want to encourage them. Encourage and reward employees who make a tangible contribution.
11. Foster a respectable work environment
Nowadays, employees expect respect from their employers more than ever. In an organization, employees do not want to feel undervalued or insignificant, which may result from a lack of respect.
There are many ways to foster a culture of respect. Among them are: taking feedback intending to improve their productivity; recognizing their contributions; sharing ideas and encouraging collaboration.
12. Be a mentor and coach
It is considered that good leaders can turn out to be great mentors as well. Employees look up to their managers as a source of guidance, coaching, and counseling. Mentorship should therefore be made a priority by all managers to help their employees achieve career and knowledge growth.
Work with each employee to help them set career goals and devise productivity strategies accordingly. Make sure you provide them with opportunities that challenge them so that they can grow as individuals.
Engagedly’s Mentoring Complete can be an effective solution to mentor your employees and help them grow.
13. Regular upskilling
Being a manager does not mean that one knows everything there is to know about your industry. There is always more to learn as a manager and there is no end to learning to become more efficient with time. Thus, as a part of a manager’s growth and development goals, managers should find time to learn and master new skills. It might range from learning technical skills to management or leadership skills.
They can even enroll in a development course or register for a webinar session in an area they wish to further develop. Also, an organization can provide online resources for developing unique competencies related to project management, time management, and motivation.
Example Goal: By Q3, gather 360° feedback and hold monthly one-on-one coaching sessions to support team growth.
3. Lead Hybrid Teams Effectively
Example Goal: Within 3 months, implement a set of team rituals, asynchronous updates, and transparent decision-making processes to maintain cohesion in hybrid settings.
4. Champion Inclusive & Agile Leadership
Example Goal: Lead at least one DEI initiative and one agile improvement project before year-end.
Lessons from Today’s Trends: Leadership Development in Action
Executive Coaching on the Rise Top organizations and business schools are integrating coaching as a critical development tool. It’s now the third most in-demand learning method, after career development and skills assessments.
Ethical AI Leadership As AI becomes integral to business operations, managers must model ethical decision-making, prioritizing transparency, fairness, and trust.
Gen Z’s “Conscious Unbossing” Younger leaders are rejecting traditional “boss” dynamics in favor of autonomy, purpose, and balance. Development goals must reflect this shift to attract and retain next-gen talent.
How to Set Effective Development Goals for Managers
Start with a 360-Degree Assessment – Identify strengths, blind spots, and development opportunities.
Integrate Structured Coaching – Provide access to internal or external coaching to help managers stay focused and reflective.
Set 3–5 SMART Goals Per Quarter – Ensure a mix of technical skills (e.g., AI literacy) and behavioral skills (e.g., empathy, inclusion).
Offer Mentorship Opportunities – Structured mentorship can boost both productivity and well-being.
Wrapping Up
Professional development goals change a manager’s outlook and make them an individual who leads by example.
By setting development goals for your manager, you are creating a road to success for three entities: your organization, employees, and yourself.
FAQs
Q1: How many development goals should a manager set per quarter? Aim for 3–5 SMART goals—enough to drive growth without overwhelming workload.
Q2: What’s more critical—technical or soft skill development? Both. Technical skills (like AI fluency) enhance credibility, while soft skills (like coaching and empathy) sustain engagement and trust.
Q3: Can AI help in setting or tracking these goals? Absolutely. AI tools can tailor learning plans, monitor progress, and provide timely nudges or personalized coaching prompts.
A matrix organization lies between a functional organizational structure and a project-based one; it involves the features of both types. Initially developed in the 1970s to address the complexities of large-scale projects, this structure has since become a popular framework in various industries, particularly in the technology, engineering, and healthcare sectors.
Unlike traditional hierarchical structures where employees report to a single manager, the matrix structure introduces multiple reporting lines, creating a networked environment where individuals collaborate across functional boundaries to achieve organizational goals.
The benefits of a matrix organization structure are manifold. Facilitating collaborations among departments helps spark new ideas and share knowledge. Moreover, it allows resource optimization as employees could be moved dynamically to tasks where they could apply their skills and expertise.
Furthermore, the team structure facilitates a more wholesome approach to the organization’s goals because employees work together to achieve common objectives. Let’s learn more about matrix organicational structure in this blog post.
TL;DR Summary
Matrix organizations combine functional and project-based structures with dual reporting lines.
Promote collaboration, flexibility, and better skill utilization—popular in tech, healthcare, and engineering.
Benefits: Better communication, faster decisions, and more innovation.
Challenges: Role confusion, power struggles, complex workflows, and risk of burnout—solved through clear roles and support systems.
Why Matrix Organizations Matter More Than Ever in 2025
The accelerating pace of change, driven by hybrid work models and digital transformation, makes agile structures a must-have—not just an option. Organizations that adopt a matrix organization can quickly form project-based teams, optimize skill sharing, and pivot in response to market shifts.
In 2025, the integration of AI-powered coordination tools is revolutionizing the way matrix structures operate—enabling real-time alignment between functional and project needs, reducing bottlenecks, and improving collaboration across distributed teams.
What Is a Matrix Organizational?
A matrix organization is a management method that integrates both functional and project-oriented approaches. The matrix structure involves dual reporting lines, where the staff members usually report to both a functional manager, who supervises their skills development in a specific department or discipline, and a project manager, who directs them to realize the project’s goals and deadlines.
This twin reporting system provides for greater flexibility, intradepartmental collaboration, and swift management of ad hoc tasks.
In a matrix structure, the reporting relationships are formed in a grid or matrix-like pattern. Employees are simultaneously part of a function department (e.g., marketing, finance, engineering) and a project team. This mode makes it easy to identify the resources needed for each project to ensure compliance with project objectives.
84% of American workers are employed within organizations that utilize a “matrixed” work arrangement to varying degrees.
The matrix structure originated in the mid-20th century primarily because of escalating organizational complexity and the need to adapt to unpredictable market conditions. It was popular in the aerospace, defense, and construction industries, where projects often require different skill sets and multidisciplinary collaboration.
In a weak matrix structure, functional managers hold more power and authority over employees than project managers. Employees are primarily responsible to their functional managers, and they are temporarily assigned to projects while reporting to their functional department. This structure is suitable when projects are small or short-term and the functional departments need to maintain a high degree of control over resources.
Tech giant IBM employs a weak matrix structure, where functional managers have more authority over employees than project managers. Employees are primarily aligned with their functional departments (e.g., software development, hardware engineering, sales) and are assigned to projects as needed.
2. Balanced Matrix
In a balanced matrix structure, functional and project managers share equal power and authority over employees. Employees report to both their functional managers for functional guidance and their project managers for project-specific tasks and responsibilities. This structure is suitable when projects are equally important to the functional departments and a balance of power is necessary for effective coordination.
Procter & Gamble (P&G) uses a balanced matrix structure, where functional managers (e.g., marketing, research and development, operations) and project managers (for specific product lines or initiatives) share equal control over employees.
3. Strong Matrix
In a strong matrix structure, project managers hold more power and authority over employees than functional managers. Employees are primarily responsible to their project managers, and functional managers play a supporting role in providing specialized expertise and resources. This structure is suitable when projects are large, complex, long-term, and bring huge revenues for the organization.
Lockheed Martin, the defense contractor, utilizes a strong matrix structure, particularly for large-scale projects like developing new fighter jets or space systems. Project managers have significant authority over resources, while functional managers provide support and expertise.
Improved project efficiency and faster decision-making: Dual reporting lines streamline decision-making, and projects benefit from the expertise of both functional and project managers. This leads to quicker resolutions and smoother project workflows.
Enhanced communication and collaboration across departments: Matrix structures promote cross-functional collaboration as team members from different departments work together on projects. This leads to better communication and a deeper understanding of organizational objectives.
Fosters innovation and knowledge sharing: By bringing together individuals with diverse skills and perspectives, matrix structures encourage innovation and creativity. The exchange of ideas across functional boundaries fosters a culture of continuous learning and improvement.
Better utilization of employee skills and expertise: Employees in a matrix structure have the opportunity to contribute their skills to various projects, maximizing their potential and ensuring that their expertise is utilized effectively across different areas of the organization.
Challenges of a Matrix Organizational Structure
Despite the many benefits a matrix organization brings, challenges are present in every organizational framework. To combat these challenges, organizations must first identify them. Let’s delve into each one:
In a matrix structure, employees report to both functional managers (e.g., department heads) and project managers simultaneously. This can lead to confusion about roles, responsibilities, and priorities. Employees may find it challenging to understand to whom they should be primarily accountable, which can result in inefficiencies and conflicts.
Potential for Power Struggles Between Functional and Project Managers
Matrix structures can create power struggles between functional managers who focus on long-term departmental goals and project managers who prioritize short-term project objectives. Conflicting priorities and decision-making authority can lead to tension and competition for resources, potentially hindering project execution.
Increased Complexity in Communication and Decision-Making
With multiple reporting lines and stakeholders involved, communication channels become complex in a matrix structure. Decision-making processes may also become slow and cumbersome as various stakeholders need to be consulted or aligned, leading to delays in project execution and potentially impacting overall productivity.
Risk of Employee Burnout Due to Competing Priorities
Employees in a matrix structure often juggle multiple projects or tasks simultaneously, leading to increased workload and pressure. The constant balancing act between fulfilling functional responsibilities and meeting project requirements can contribute to employee burnout, negatively impacting morale, productivity, and retention rates.
To address these challenges, organizations implementing matrix structures should focus on establishing clear communication channels, defining roles and responsibilities, providing adequate training and support for employees, fostering collaboration and teamwork across departments and projects, and implementing effective conflict resolution mechanisms.
Additionally, regular performance evaluations and feedback sessions can help managers and employees more effectively navigate the complexities of a matrix structure.
When is Matrix Structure Suitable:
When is Matrix Structure Suitable for Your Organization?
Matrix structures aren’t right for every organization. Here’s when they work best and when to avoid them:
Perfect Fit Scenarios:
Complex Projects Requiring Diverse Skills
– Software development needing designers, developers, marketers, and testers
– Construction projects requiring architects, engineers, contractors, and project managers
– Healthcare initiatives needing doctors, nurses, administrators, and IT specialists
– Media companies creating different content types
Limited Resources Needing Maximum Utilization
– Need to share specialized experts across multiple projects
– Want flexibility to respond to opportunities quickly
– Can’t afford dedicated teams for each project
Poor Fit Scenarios:
Simple, Routine Operations
– Manufacturing with standard, repetitive processes
– Small companies with clear, simple structures
– Organizations with highly independent functions
Risk-Averse, Traditional Cultures
– Government agencies requiring strict reporting lines
– Highly regulated industries with compliance requirements
– Organizations resistant to change and collaboration
Quick Assessment Questions:
1. Do your projects require people from multiple departments?
2. Do you need to share specialized resources across projects?
3. Is your industry dynamic and fast-changing?
4. Are you comfortable with some ambiguity and complexity? If you answered “yes” to most questions, matrix structure might work for your organization.
2025 Trends Transforming Matrix Organizations
AI-Enabled Coordination — AI systems now automatically match team skills with project needs, streamlining workload allocation.
Cultural Intelligence (CQ) — Global organizations are investing in CQ training to bridge cultural gaps in cross-regional teams.
Agile Org Design — Matrix setups increasingly blend with agile pods, allowing rapid experimentation without losing structural clarity.
Summing Up
In conclusion, the matrix organization offers a dynamic framework that blends functional and project-based hierarchies, allowing for increased flexibility and collaboration within organizations.
Its various types cater to different needs, whether they are strong or weak matrix setups. This structure’s benefits include enhanced communication, specialized skill utilization, and efficient resource allocation.
By leveraging the strengths of functional and project-based approaches, businesses can more readily adapt to complex challenges and capitalize on opportunities in today’s fast-paced environment.
Frequently Asked Questions
What role does leadership play in a matrix organization?
Leadership’s role in a matrix organization involves facilitating collaboration, resolving conflicts, and providing clear direction and priorities. It ensures that both project and functional objectives are met.
Can a matrix structure work for all types of organizations?
While matrix structures can be effective in many situations, they may not be suitable for every organization. Small organizations with simple structures or those with highly specialized functions may find them too complex. Before implementing a matrix structure, it’s essential to assess the organization’s needs and capabilities.
How can an organization transition to a matrix structure successfully?
A successful transition to a matrix structure requires careful planning, clear communication, and support from leadership. Key steps may include defining roles and responsibilities, establishing communication channels, providing training on matrix working principles, and addressing any cultural or organizational barriers to collaboration.
Do you aspire to become a remarkable leader within your organization? Have you noticed the varying levels of charisma among different leaders?
The answers to these questions are both straightforward and thought-provoking. Exceptional leadership skills are the hallmark of great leaders. While some individuals may naturally embody leadership qualities, others develop these skills over time through experience.
Regardless of your current role within the organization, it is crucial to cultivate and demonstrate leadership abilities. In this article, we will provide expert tips to help you navigate the journey toward outstanding leadership.
In 2025, leadership at work goes far beyond titles or corner offices. The modern workplace—often hybrid, diverse, and tech-driven—demands leaders who inspire, adapt, and build trust in every interaction. Whether you’re a team member or a manager, learning how to show leadership at work is key to professional growth and organizational success.
What Does Demonstrating Leadership Look Like in 2025?
True leadership today means more than issuing directives—it’s about building human connection, fostering trust, and navigating change with empathy and agility.
Key leadership behaviors include:
Leading by example—embracing accountability, transparency, and integrity.
Commitment to continuous growth—regular reflection, feedback, and learning.
Adaptive mindset—responding to uncertainty with strategic flexibility and innovation.
Building connection—prioritizing communication, trust, and inclusive team culture.
What are Leadership Skills?
Leadership skills encompass a range of abilities, traits, and behaviors that empower an individual to lead and manage a team or organization effectively in pursuit of a shared objective.
Proficient leaders leverage these skills to inspire and motivate their team, foster trust, encourage collaboration, and cultivate a positive and productive work atmosphere.
These skills are indispensable for success in any field or profession, as they empower individuals to steer change, overcome obstacles, and attain their objectives.
Leaders who take initiative are self-starters who are not afraid to take calculated risks, explore new ideas, and think outside the box. They are proactive in identifying problems and opportunities, and they take action to address them.
To demonstrate your initiative, be willing to take on new projects, offer suggestions for improvement, and go the extra mile to get things done. Leaders who take initiative are often seen as proactive problem-solvers who are committed to achieving results.
2. Foster Curiosity
If you want to demonstrate leadership in workplace, ask questions whenever you get an opportunity to. Asking questions shows your dedication and enthusiasm for your work. Don’t hold back any questions about work; sometimes questions can lead to some magnificent ideas that contribute to organizational success.
3. Deliver High Performance
If you want your colleagues and managers to recognize your leadership skills, you have to deliver high performance. By high performance, we don’t mean just completing your goals; you should overperform! Doing extra work always helps you to stand out from the crowd.
It makes your managers count on you more and depends on you for tasks that require you to put extra effort into them. We recommend reading this article on Leadership SMART Goals Examples.
4. Continuous Improvement
One of the most important leadership qualities is continuous learning. A good leader never stops learning. There is a lot to learn every day; learn from everyone around you.
The world is filled with examples. Learn from your mistakes and those of your colleagues. Be open to learning, there’s always a new skill to master! Look out for a mentor within the organization or outside who can help you become a better leader.
Approach problems and challenges with a mindset that is open to new and innovative solutions. Leaders who problem-solve with creativity are able to see beyond the surface-level symptoms of a problem and identify the root cause. They are skilled at analyzing data, generating new ideas, and implementing effective solutions.
To demonstrate your problem-solving skills, take a collaborative approach, bringing together different perspectives and expertise to solve complex problems. Be open to feedback and willing to adapt your approach as needed. Leaders who can problem-solve with creativity are valued for their ability to drive innovation and deliver results in challenging situations.
6. Communicate Effectively
According to a survey published on recruiter.com, 33% of employees believe that lack of communication results in poor employee morale.
As a leader, you should understand the importance of communicating effectively with your colleagues and managers. Most mistakes at the workplace happen because of a lack of proper communication.
Build influence on your colleagues and teammates by listening to them when they are communicating. Make sure that you are heard and that everyone properly understands the point you make. Scheduling regular one-on-one meetings is an excellent way to foster open communication with your team and address concerns effectively.
When offering feedback, focus on behavior, not the person. For example, instead of ‘You’re disorganized,’ try ‘I noticed the report was late—how can we adjust your process to hit deadlines?’ This approach keeps the team member engaged and solutions‑oriented.
7. Focus on Results
In today’s business environment, it is essential for leaders to be results-driven. Showcase your leadership skills by setting clear goals and expectations, monitoring progress, and holding yourself and your team accountable for results. Celebrate successes learn from failures, and be willing to make tough decisions when necessary to achieve your goals.
When you slip up—say, missing a key stakeholder email—own it publicly. A quick team message like, ‘I missed that email; here’s how I’ll prevent it next time,’ models accountability and encourages the same openness in others.
8. Networking
Network or connect with key leaders in the organization or outside to hone your leadership skills. If you are connecting with someone from within the organization, have informal meetings with them from time to time. Take assistance from them when you face any difficulties or come across any problems you can’t solve. Look for a mentor in the organization who can guide you whenever required.
Otherwise, you can also join professional associations and attend networking events or seminars to start networking with leaders in your industry. This will help you build great connections and improve your leadership skills.
9. Coach and Mentor
Coaching and mentoring are important leadership skills that involve guiding and supporting team members in their personal and professional development. As a leader, take the time to understand your team members’ strengths and weaknesses, and provide feedback, advice, and encouragement. Encourage them to take on new challenges, learn new skills, and develop their talents. Be a role model for continuous learning and development, and show a genuine interest in your team members’ growth.
Schedule a 30‑minute monthly check‑in with each direct report. Use a short mentorship template—ask about their goals, obstacles, and one skill they want to master this quarter. This routine shows you’re invested in their growth.
10. Embrace Change
Change is a constant in the workplace, and leaders who can embrace it and adapt quickly are highly valued. To demonstrate your leadership skills in this area, cultivate a growth mindset that sees change as an opportunity rather than a threat.
Be open to new ideas and approaches, and encourage your team to do the same. Stay informed about industry trends, technological advancements, and other factors that could impact your organization, and proactively suggest changes that could benefit the team or the company as a whole.
11. Build a Collaborative Team Culture
Effective leaders know the importance of fostering a collaborative team culture. Encourage open communication, teamwork, and mutual support among team members. Create an environment where everyone’s ideas are valued, and individuals feel comfortable sharing their perspectives.
By promoting collaboration, you strengthen the overall team dynamic, leading to increased creativity, productivity, and job satisfaction. Show that you appreciate diverse talents within the team and recognize the contributions of each member toward shared goals.
12. Demonstrate Empathy
Great leaders understand the importance of empathy in building strong relationships within the team. Take the time to understand your team members’ perspectives, challenges, and emotions. Show genuine concern for their well-being and actively listen to their concerns.
Acknowledge both professional and personal aspects of their lives, creating a supportive work environment. By demonstrating empathy, you not only strengthen interpersonal connections but also inspire trust and loyalty among your team members. This, in turn, fosters a positive and collaborative work atmosphere.
Imagine Sara, a new hire anxious about her first presentation. You sit with her for 10 minutes to hear her concerns, then share your own first‑time nerves. That simple act of empathy deepens trust and empowers Sara to perform.
Leadership Trends to Embrace in 2025
Emphasize human connection—trust-building remains the core of resilient leadership.
Lead with agility and innovation—encourage experimentation and rapid iteration.
Inclusive leadership—empower others, foster bottom-up leadership, and prepare for succession.
Transform hierarchical norms by embracing purpose-driven, distributed leadership.
Practical Ways to Demonstrate Leadership in 2025
Pair up with a coaching copilot — Use AI-powered coaching tools to gain insights into your leadership style.
Train in immersive simulations or VR scenarios — Practice decision-making, negotiation, and conflict resolution.
Champion ethical AI practices — Lead by ensuring technology supports fairness and human values.
Encourage micro-mentorship — Offer quick, targeted mentoring moments to colleagues.
Conclusion
Leadership is about influencing and motivating others to achieve a common goal. Effective leadership in any workplace requires a combination of relevant skills, attitudes, and behaviors. By incorporating the strategies discussed in this article, you can inspire others, achieve results, and contribute to a positive workplace culture
Frequently Asked Questions
Q1. How to demonstrate leadership at work?
Ans. To demonstrate leadership, focus on effective communication, setting a positive example, and actively supporting your team’s growth and success.
Q2. What are some practical ways to improve my leadership skills?
Ans. Practical tips to enhance leadership skills include fostering open communication, encouraging innovation, leading by example, and embracing a growth mindset.
Q3. How can you inspire and motivate my team as a leader?
Ans. You can inspire and motivate your team by recognizing their efforts, providing constructive feedback, promoting a positive work environment, and fostering a sense of purpose. These actions can boost team morale and productivity.
Volunteering is an important way for many people to give back to their community and help those in need. However, many who wish to volunteer full-time are limited by job responsibilities and other commitments.
In recent years, some companies have sought to address this issue by introducing “Volunteer time off,” or VTO, policies that allow employees to take paid leave for volunteer work.
This emerging employee benefit is gaining traction as more employers recognize the personal and professional value of volunteering. By examining what volunteer time off entails and exploring how companies are implementing these programs, this article aims to provide insight into this growing trend and its potential to encourage greater civic engagement while supporting workforce happiness and well-being.
Why Volunteer Time Off Matters in 2025
In 2025, Volunteer Time Off (VTO) is no longer just a “feel-good” perk—it’s a strategic driver of engagement, retention, and brand equity. Today’s workforce is driven by authenticity, flexibility, and purpose. VTO fosters all three while making a tangible impact on communities.
Industry leaders like Cisco and American Express integrate VTO into their core culture, recognizing that community engagement fuels morale, strengthens loyalty, and enhances employer branding. Organizations that embrace VTO are better positioned to attract top talent in a values-driven job market.
VTO by the Numbers: Trends & Stats
60% of companies now offer paid VTO, with 21% planning to introduce it soon. (Donorbox)
On average, organizations grant 20 hours (2.5 days) of paid volunteer time per employee annually. (Double the Donation)
Companies offering VTO see ~7% higher employee engagement and 13% higher productivity. (Lucet)
Organizations that actively track and promote VTO participation report up to 2x higher retention rates. (Percent Pledge)
What is Volunteer Time Off?
Volunteer time off (VTO) is a paid leave allowing employees to support approved charitable organizations. This benefit enables organizations to attract potential employees by giving them the freedom to make a positive impact outside of work while still receiving their regular pay.
Employee time-off requests, volunteering activity standards, and how employees can gain permission for their requests must all be included in the Volunteer Time Off Program or policy. The organization must select Employee Volunteering Policy specifics that align with the organization’s objectives.
A small business may enable employees to use one day of vacation time each year to volunteer at a shelter, clean a roadway or beach, or work at a food bank. Larger companies may enable employees to take up to five days of voluntary time off per year.
Why Should a Company Implement VTO?
Our family, friends, society, and community provide us with so much. As a result, there is always time to contribute meaningfully to the community. It could take any shape, such as serving at a local voting station or a child’s school. The only thing that matters is that the employees work hard to make the community a better place.
Employees nowadays expect more from their jobs than just a good salary. A chance to make a tiny difference in the world goes a long way toward retaining outstanding talent.
According to a study by Core Communications, over 75% of employees will stay with a firm that offers Paid volunteer time off policy to work for the greater good.
As a result, the desire to work for a socially responsible firm has taken hold, and employees are looking for companies where their personal ambitions fit with the companies. It also contributes to lower staff turnover.
Benefits of Providing Volunteer Time Off
Implementing the Employee Volunteer Program Policy has many advantages for a firm, including attracting and keeping top personnel in the industry. It enables employees to contribute back to the community while also improving their emotional and physical well-being.
Here are some of the most important advantages of Volunteer Time Off Best Practices.
1. Enhances mental well-being
Many businesses have embraced Volunteer Time Off Guidelines and put them in place to reap the benefits. It also helps in the betterment of their employees’ physical and emotional well-being.
According to a study, after implementing Volunteer Time Off, a larger percentage of employees reported a happier mood and lower stress levels.
Employees who volunteer have been shown to have a higher feeling of overall happiness. It also keeps them motivated, which shows up in their work results. Volunteering employees have also stated that their blood pressure is under control, indicating that they are in good cardiovascular health.
2. New Skills Acquisition
Employees have the chance to learn new skills outside of the workplace. They gain hands-on experience in a new field, which helps them do their job perfectly in an organization. Employees who oversee or manage a volunteer training program are deemed to improve their leadership and communication abilities.
3. Gives a Sense of Direction
Volunteering offers employees a sense of purpose and allows them to see how their efforts are making a difference in people’s lives. It gives them a sense of belonging, achievement, and self-assurance. This feel-good effect boosts their mood and allows them to live happy lives.
If you’re wondering how to use volunteer time off, it’s a paid vacation during which employees are rewarded for hours spent volunteering in a community or nonprofit organization. As a result, this paid volunteer time off policy allows employees to conduct some good work for the community without losing their jobs.
How to Write a Successful Volunteer Time Off Policy?
One of the simplest policies to write is a VTO policy.
Step 1: Define your goals.
When you have an idea of what you want to do, you can start there and build your program around it.
Step 2: Obtain Management and Leadership Support
This is a crucial step that occurs twice: first when you create the policy and again when an employee requests VTO.
Managers may appreciate the requirement of a request form in advance. This gives them the information they need to alter their workload or fill in for shifts. As a team-building activity, offer that teams to take a half-day of VTO to perform a charitable project together.
Step 3: Make Time Tracking Official
Use a documented time-tracking mechanism, as you do for PTO or sick leave, to eliminate the possibility of abuse. Keep the time in its bank (whether it’s all given at the start of the year, on a service anniversary, or accrued throughout the year), so it doesn’t get mixed up with other time banks.
Decide how much VTO you’re willing to provide in hourly, half-day, or full-day increments.
Step 4: Create a Comprehensive Policy
Make the policy comprehensive and easy to grasp. Include:
Who may take part? (Are they required to be full-time employees? Is there a limited length of time they must have spent at your company? Are employees who are members of a union eligible?)
How much time is available?
What types of organizations are permitted and which are prohibited (For-profit corporations are prohibited, but do you allow VTO in political organizations?)
Are disciplined employees eligible?
What type of screening process (if any) do you need to evaluate the organization before approving VTO?
What kind of auditing (if any) would you do to ensure that VTO was utilized appropriately and in the permitted amount?
What kind of record-keeping is required, and who handles it?
Is there a form with the policy? Is it necessary to get VTO approval ahead of time? Who is it?
Best Practices to Frame Paid Volunteer Leave Policy
Before rolling out a VTO program, businesses need to consider a few key factors.
1. Eligibility: Who Qualifies?
Should both full-time and part-time employees be eligible for VTO? Will factors like rank, tenure, or performance be considered? For instance, would an employee on a Performance Improvement Plan still have access to this benefit, or should they meet specific performance criteria first?
2. Organization Eligibility: Which Causes Qualify?
Can employees choose any organization to volunteer for, such as spending a day helping at their child’s school? Or should the company provide a list of pre-approved nonprofits?
What about political organizations—are they allowed? It’s essential to think about whether the chosen causes align with the company’s values. For example, volunteering for a controversial organization could spark internal or public conflict.
3. Type of Volunteer Work: What Activities Qualify?
Does the volunteer work need to be tied to a specific event, or can ongoing tasks like food distribution at a local food bank qualify? Additionally, can employees volunteer in areas aligned with their professional skills?
For instance, could someone in marketing help a nonprofit with their social media strategy? Be mindful of potential conflicts of interest, especially if the volunteer work mirrors their day-to-day job responsibilities.
4. Leave Allocation: How Much Time is Granted?
Will VTO be part of the general PTO pool, or will it have a separate allowance? For instance, will employees be given 8 hours or 2 days specifically for volunteer work, and will it need to be accrued over time? Should the policy allow employees to earn more volunteer time after reaching certain milestones?
5. Tracking Time: What’s the Calendar Structure?
Is the VTO granted based on the calendar year or fiscal year? What’s the most efficient way for employees to log their volunteer hours? For example, should they report their hours monthly, or can they use a digital tool for real-time tracking?
6. Request Process: How Do Employees Apply?
Is the process similar to regular PTO requests, or does it require additional information about the volunteer organization? For example, do employees need to provide details on the group and their specific volunteer role?
Also, consider how far in advance requests must be made. Will there be blackout periods during high-demand times like holidays, and how will you manage coverage if many employees request VTO simultaneously?
Volunteer Time Off (VTO) Policy Examples
One of the best ways to create a VTO policy that suits your company is by exploring examples from other organizations. Below are six examples of how companies have structured their VTO programs:
Silicon Valley Community Foundation (SVCF)
SVCF’s Entrepreneur’s Foundation offers a robust VTO policy template that not only guides how to implement a program but also clearly outlines what qualifies for VTO. It serves as an excellent blueprint for conveying VTO benefits to employees.
North Texas Entrepreneurs
This VTO policy is cleverly integrated with the company’s overall business guidelines, ensuring seamless alignment with broader corporate values, making it a practical solution that addresses two needs at once.
United Way
United Way’s VTO policy includes a helpful request form template that employees can use when applying for volunteer time, offering a clear and structured process for approval.
Thomson Reuters
The company’s VTO policy features an innovative “Dollars for Doers” initiative, where they match employees’ volunteer hours with up to $1,000 in monetary donations, adding a unique incentive to encourage participation.
San Mateo Community
Although complex, with elements like fact sheets and reference cards, this VTO policy is comprehensive, showing how detailed a policy can be, offering employees all the information they need in one place.
Markit IHS
This is a standout example of a well-rounded VTO policy, covering everything from the program’s goals to time allocation, eligibility, and time-off tracking, making it a great reference for those seeking a detailed approach.
2025 Trends Shaping VTO Programs
Digital & micro-volunteering – Bite-sized virtual volunteer opportunities, like online mentoring and translation projects, are ideal for hybrid teams.
AI-powered volunteer matching – Platforms now match employees to causes based on skills, interests, and availability, boosting participation.
Data-driven CSR – Companies measure VTO outcomes, tracking community impact, participation rates, and ESG alignment.
Global collaboration – Cross-border volunteering initiatives foster cultural awareness and global citizenship.
Key Takeaways on Volunteer Time Off
Feedback, as with any HR program, is really valuable. If you’re just getting started, ask your team members what they would like to see in your volunteer time off program.
Then, regularly check to learn about the program’s benefits and identify opportunities for improvement. This is especially true among millennials, who desire to contribute comments, ideas, and solutions to help companies improve their corporate social responsibility activities.
Find out if they have any specific organizations in mind or if they’d like some suggestions to begin. Inquire about their preferred structure for the VTO program. For example, should you volunteer for a full day or for a shorter time?
Flexible vacation time to help their own charity or go on team service trips? Find out which people on your staff are most enthusiastic about volunteering and urge them to establish a committee to help you expand the program internally. We hope that this blog has answered all your queries and doubts.
Conclusion
Volunteer Time Off is a powerful, purpose-driven benefit that enriches employee experience, strengthens company culture, and amplifies social impact. In 2025, the most successful VTO programs follow the ATAL model—Anytime, Tailored, Anywhere, and Linked to measurable outcomes. By combining clear policies, engaging promotion, and tech-enabled volunteer matching, organizations can turn VTO into a cornerstone of their employee value proposition.
Want to know how Engagedly can help you manage your hybrid employees better? Request us for a demo.
Did you know that 78% of managers admit their performance reviews are influenced by what employees did in the last month rather than their entire yearly performance? This phenomenon, known as recency bias, silently undermines fair workplace evaluations and can make or break careers.
Recency bias is a cognitive tendency where recent events disproportionately influence our judgment and decision-making. In performance reviews, this means managers unconsciously weigh the last few weeks or months more heavily than an employee’s complete annual performance record.
Recency Bias Examples
Consider Daniel, a top sales performer at XYZ organization. Throughout 2022, Daniel consistently exceeded targets, closing major deals and contributing significantly to team success. However, during his January-March 2023 review period, Daniel faced personal challenges that temporarily affected his performance—his quarterly revenue dropped 70% below the team average.
When performance review time arrived, Daniel’s manager Sean focused exclusively on these recent three months of underperformance. Despite Daniel’s outstanding annual track record, he received no raise or promotion. This unfair evaluation led to Daniel’s disengagement, decreased motivation, and eventual job dissatisfaction.
This real-world example illustrates how recency bias creates a distorted lens that can destroy employee morale and overlook genuine talent. Organizations lose valuable contributors when recent performance overshadows consistent excellence.
How Does Recency Bias Affect Performance Reviews?
Performance reviews are meant to be a fair, evidence-based evaluation of an employee’s contributions. However, recency bias—the tendency to give more weight to recent events—often distorts the process. This bias can unintentionally reward or penalize employees based on their most recent performance, rather than their work across the full review period.
In 2025’s hybrid and fast-paced work environments, recognizing and addressing recency bias is critical for accurate evaluations, higher employee trust, and better talent retention.
Why Recency Bias Is Especially Problematic in 2025
Performance volatility – Fluctuations caused by remote work dynamics or project cycles can be misinterpreted as permanent trends.
Emotional weight of recent events – Mistakes or wins close to review time can overshadow consistent performance earlier in the cycle.
Hybrid visibility gap – In distributed teams, recent interactions (e.g., via Slack, Teams) are more top-of-mind than contributions made months ago.
Accelerated work cycles – Short sprints and fast deliverables mean recent outcomes dominate discussions.
Why does Recency Bias Occur in Workplaces?
Recency bias occurs in workplaces due to several psychological and cognitive factors:
Memory and Attention: Humans tend to give more weight to recent events because they are more easily remembered and still in our immediate attention. The human brain may prioritize recent information over older experiences when making judgments.
Availability Heuristic: People often rely on information that is readily available to them when making decisions. Recent events or experiences are more accessible in memory, leading individuals to place greater importance on them when assessing situations.
Impacts of Emotion: Recent events or experiences may evoke stronger emotions, which can influence decision-making. Emotionally charged events are more likely to be remembered and given undue weight when evaluating an individual’s performance or behavior.
Short-Term Memory Bias: The human brain tends to prioritize information stored in short-term memory. Events or information that occurred recently are more likely to be at the forefront of individuals’ minds, influencing their judgments and perceptions.
Cognitive Load: In busy work environments, individuals may be overwhelmed with information and tasks. This cognitive load can make it challenging to consider a person’s performance over an extended period, leading to a reliance on recent information for convenience.
Recency’s Perceived Relevance: People often assume that recent events are more indicative of a person’s current capabilities or behavior. This assumption may lead to the belief that the most recent information is more relevant in evaluating performance.
To mitigate recency bias in workplaces, it’s essential for managers and decision-makers to consciously consider a broader time frame when assessing performance, utilize comprehensive performance evaluation systems, and incorporate feedback from the entire evaluation period.
Recency Bias Effect on Performance Appraisal
Good reviews depend on the reviewer objectively reviewing an employee’s performance from the beginning of the year to the end of the year (for a 6-month period, a 3-month period, etc.). For a yearly appraisal sample that provides a balanced evaluation across the entire year, check out these performance review examples.
That means the final review is a summation of all the work that has been done, both the good and the bad, and the in-between as well. This is how a good review works.
With recency bias, however, the scenario is a little different. When reviewers suffer from recency bias, they tend to remember the most recent work the employee has done. And based on the quality of that work, they review their performance.
If a low-performing employee suddenly starts performing better just before the review, then despite their previous low performance, they are going to get a good review.
On the other hand, if an employee performs well throughout the year, but before the review, their performance drops, then despite their previous good performance, they are going to get a bad review.
Recency bias penalizes people based on factors outside of their control and rewards people for momentary bursts of effort.
How Recency Bias Distorts Reviews & Why It Matters
Recency bias is closely tied to cognitive science principles:
Availability heuristic – Recent performance is easier to recall, so it becomes overemphasized.
Serial-position effect – Information presented last is remembered more vividly than earlier data.
The result?
Misaligned promotions – Employees with consistent long-term excellence may get overlooked.
Demotivation – Staff feel their earlier achievements aren’t valued.
Attrition risk – High-performers may seek workplaces with fairer recognition systems.
How to Avoid Recency Effect in Performance Appraisals
Combating recency bias requires intentional systems and consistent practices:
Implement Continuous Documentation: Maintain detailed performance records throughout the review period. Note specific achievements, challenges, skill development, and feedback instances as they occur. Don’t rely on memory during review season.
Use Performance Management Technology: Digital platforms like Engagedly offer employee feedback tracking and private note features that create comprehensive performance histories. These tools eliminate guesswork and provide objective data for fair evaluations.
Establish Regular Check-ins: Schedule monthly or quarterly progress discussions instead of relying solely on annual reviews. Frequent touchpoints create multiple data points that prevent any single period from dominating the evaluation.
Create Structured Review Templates: Use standardized forms that require managers to address performance across different time periods and categories. This forces comprehensive evaluation rather than recent-event focus.
Train Management Teams: Educate supervisors about cognitive biases and their impact on performance reviews. Awareness is the first step toward making more objective, fair assessments.
While completely eliminating recency bias may be impossible due to human psychology, these strategies significantly reduce its influence. Organizations that prioritize fair performance evaluation create stronger employee engagement, better retention rates, and more accurate talent development decisions.
Remember: exceptional employees deserve recognition for their complete contribution, not just their most recent weeks. By implementing systematic approaches to performance tracking and evaluation, managers can ensure every team member receives the fair assessment they’ve earned through sustained effort and achievement.
Steps to Mitigate Recency Bias in 2025
Performance Journals – Encourage managers to keep logs throughout the year to maintain a full-cycle view.
Structured Rating Criteria – Use defined metrics and consistent scales to anchor assessments.
Regular Feedback Cadence – Hold monthly or quarterly 1:1s to ensure performance is tracked continuously.
Manager Calibration – Host review calibration meetings to align standards across teams.
360-Degree Reviews – Gather feedback from peers, reports, and cross-functional partners to provide a holistic view.
2025 Tools & Practices to Counter Recency Bias
Continuous Feedback Software – Platforms like Engagedly, Lattice, or Leapsome log year-round performance notes and feedback.
Self-Assessments with Data – Employees document achievements supported by objective metrics.
Bias-Awareness Training – Equip managers to spot and counter recency bias during reviews.
Feedback Templates – Prompts for capturing progress across the entire review period, not just recent events.
Conclusion
Recency bias may be subtle, but its effects on employee morale, fairness, and retention are significant—especially in 2025’s evolving work environment. Organizations that measure performance continuously, train managers to spot bias, and implement structured review systems can create fairer, more accurate evaluations and retain top talent.
“Everyone needs a coach. It doesn’t matter whether you’re a basketball player, a tennis player, a gymnast, or a bridge player. We all need people who will give us feedback. That’s how we improve”, says Bill Gates in his TED Talk.
Incorporating coaching into daily operations promotes goal alignment between the company and the individual, open communication, and ongoing learning. This is known as the coaching culture.
In this work atmosphere, learning and development are always prioritized above all else. The essence of the coaching culture is centered around open communication, trust, and mutual assistance rather than following the conventional management method.
The article will discuss the advantages of creating a coaching culture at work, how it promotes personal growth, the critical role HR directors play, how to overcome obstacles, and how to assess the results of these initiatives.
What Is a Coaching Culture in 2025?
A coaching culture is more than a management style—it’s an environment where learning, feedback, and growth are woven into daily interactions. Instead of being limited to annual reviews or formal training programs, coaching becomes a continuous, embedded practice that fuels both individual and organizational success.
In 2025, a strong coaching culture includes:
AI-augmented self-reflection — Tools like AI coaching assistants and chatbots offer instant, personalized feedback and help employees track personal growth milestones.
Democratized coaching access — Platforms such as BetterUp Grow and Torch now integrate directly with Slack and Microsoft Teams, making coaching available to employees at all levels.
A “learn-it-all” mindset — Inspired by Microsoft’s cultural shift, leaders embrace curiosity and adaptability as core traits.
Blended human + digital support — Coaching combines the emotional intelligence of humans with the structure and scalability of AI-driven tools.
Why Coaching Culture Is Essential in 2025
Drives continuous performance — Companies with embedded coaching cultures show higher engagement, innovation, and revenue growth.
Supports leadership wellness — Coaching reduces burnout and isolation among leaders by creating a trusted space for reflection and problem-solving.
Strengthens retention — Employees who feel supported in their career growth are significantly more likely to stay long-term.
Future-proofs leadership pipelines — Executive education and leadership programs now see coaching as a must-have skill set for 21st-century leaders.
The Importance of a Coaching Culture
A company that has a coaching culture encourages executives and employees to grow, learn, and assist one another.
In this culture, supervisors and employees feel most comfortable when they:
provide and receive feedback
embrace constructive criticism with receptivity
support and enhance each other’s ideas
collaborate to generate better ideas
Instead of relying just on traditional top-down management, a coaching culture encourages teamwork, personal development, and flexibility for both leaders and employees.
The outcome?
A more engaged workforce that is content in their positions and is less prone to look for other opportunities.
The Role of an HR Leader
As an HR leader, fostering a coaching culture in your organization should be a priority. It’s possible if you can:
Demonstrate coaching behaviors, such as active listening and providing constructive feedback. You can regularly hold feedback sessions with your team to highlight the importance of coaching.
Create a safe space for employees to share and learn.
Integrate coaching with the final goals of the organization.
The Significance of Coaching Employees For Improved Performance
According to Gallup’s findings, businesses with a highly engaged workforce experience a 21% increase in profitability.
Additionally, these companies enjoy a 17% boost in productivity compared to those with lower levels of employee engagement.
Coaching helps boost employee engagement by making people feel valued and encouraging a mindset of growth, which leads to more proactive problem-solving. Plus, when people feel supported through coaching, they’re more likely to stay, which improves retention and keeps productivity up.
The use of coaching strategies in the workplace is a worthwhile endeavor capable of producing positive outcomes for the employee, as well as the overarching organization.
Here are some of the benefits for the employees:
1. Improved Performance
Coaching is instrumental in helping people develop a positive attitude toward matching their skills to the needs of specific tasks, enabling them to perform their duties well and more efficiently.
This strategy will improve team performance in addition to individual performance. Positive reinforcement and words of encouragement motivate employees to participate more, which raises output.
2. Increased Employee Engagement
62% of employees at an organization with a high coaching culture are highly engaged. This highlights the clear link between coaching and employee engagement.
Regular coaching promotes open communication and trust, which raises employee engagement and happiness.
One of Engagedly’s clients, Nuspire, experienced low staff engagement in specific business domains. Nuspire achieved a 15% boost in employee engagement by utilizing Engagedly’s E10 Engagement Survey.
3. Enhanced Problem-Solving Skills
Coaching really helps employees think on their feet and devise their own solutions, which boosts their problem-solving skills. This allows them to tackle challenges more effectively and feel a stronger sense of ownership and accountability in their work.
The provision of employee development coaching facilitates the acquisition of new skills more quickly by providing customized learning experiences, immediate feedback, hands-on training, and increased motivation.
5. Increased Retention
BetterUp also shows that 96% of workers were looking to change jobs in 2023.
Talking of how coaching benefits the organization, FMI, an investment banking firm, reports from a survey that 87% of HR leaders agree that executive coaching has a high return on investment.
Steps HR Leaders Can Take to Empower Managers in Coaching Employees
Here are some steps HR leaders can follow to create a supportive environment:
Step 1: Set Clear Guidelines for Coaching Employees
Clearly define the goals and parameters for coaching. Establish objectives for your coaching sessions, together with the desired results and modes of operation. By doing this, the managers’ role in coaching will become clearer, and the process’ organizational consistency will be preserved.
Additionally, confirm that the guidelines accurately reflect the aims and objectives of the company.
Step 2: Provide Coaching Training
Create a manager-focused training program that teaches them how to effectively coach their staff members.
You can start with tutorials and make use of resources such as listening exercises, along with helpful questions and performance feedback.
Learning by Doing: Keeping things practical is key in coaching training. HR can use real-world case studies and simulate different management scenarios, allowing managers to practice the skills they’ve learned.
External Assistance: HR can increase training efforts with qualified trainers or offer the chance to obtain external coaching certificates. This demonstrates the organization’s growth objectives and aids in managerial development.
Follow-Up and Feedback: Peer coaching circles, follow-up meetings, and feedback sessions are used to make sure that coaching abilities are further refined.
Step 3: Equip Managers with Coaching Tools
Managers may be given access to a variety of tools, including processing and tracking tools, coaching models, coaching templates, and feedback instruments.
These tools can help in the process of coaching to help the managers provide the best sessions to the employees and also help to track employees’ progress over time.
The GROW Model Of Coaching
GROW is a popular coaching model used by HR leaders across various industries.
The acronym GROW stands for:
Goal: Setting clear and precise objectives with the coach.
Reality: Evaluating the current situation and obstacles to identify the gap between where you are and where you want to be.
Options: Brainstorming strategies and solutions to bridge the gap.
Will: Creating an action plan with specific commitments to achieve the goal.
Coaching Templates
A great method to assess your new hires’ performance and guarantee their long-term success in the company is by using coaching templates.
Managers can access Engagedly’s feedback mechanism tools, which help them exchange feedback continuously with their employees. This will help not only in enhancing communication but also in building trust and transparency within the team.
With these tools, your managers can both disseminate information to and take feedback from your employees and even get the opportunity to be provided with detailed reports and analyses that would help in better decision-making.
Step 4: Encourage Ongoing Coaching Conversations
Building a coaching culture is just the start. To truly benefit from it, you need to keep putting in the effort to sustain it over the long term.
Do not fit the idea of coaching into one scheduled discussion or meeting. Your managers should be encouraged to ask open-ended questions, provide feedback often, and discuss promotions and career goals more frequently.
This can be done by integrating coaching throughout your business, be it one-on-ones, team meetings, or performance reviews.
Overcoming Challenges in Coaching Employees
Here are the common challenges you could face in coaching employees and the best ways to address them:
1. Lack of Clarity
An all too common problem when it comes to coaching employees is that objectives, expectations, and feedback indicators may often be vague.
Lack of goals and objectives also means that employees cannot really tell where they are going wrong, how progress will be measured, or how to interpret feedback correctly. This can lead to confusion and decreased motivation, severely hindering the process.
2. Resistance from Employees
Some employees may be resistant to coaching, either due to a lack of trust, fear of criticism, or reluctance to change.
The solution?
How You Frame Coaching: Framing coaching as an investment in employees’ growth rather than just a way to address issues helps them see it as a valuable opportunity for development.
Let the Employee Select the Coach: For coaching to be effective, whether through internal coaches or a contracted one, employees must trust and connect with their coach.
3. Time Constraints
Managers frequently handle multiple responsibilities, which can leave limited time for coaching sessions.
To solve this, one needs to integrate the concept of coaching within the routine work and assignments. For instance, correct the employees then and there as they work on an important project, rather than waiting for the results to give feedback.
Besides, you can ask team leaders or other peers to be responsible for the coaching to share the load.
4. Managing Different Personalities
The types of personalities in a workplace are varied.
Personality type
Characteristics
Potential downsides
Red Personality
Quick-paced, results-driven
Impatient
Yellow Personality
Optimistic, engaging
Stubborn
Blue Personality
Analytical, detail-oriented
Overly critical, indecisive
Adapting coaching styles to suit different personalities and work styles can be challenging, requiring flexibility and emotional intelligence.
Certain personality assessment methods, like Myers-Briggs Type Indicator or DISC, can give you information about the personality of the coached person and thus the approach to be taken.
5. Communication Gap
The communication gap between employers and employees is a common problem that prevails across almost all organizations.
To effectively communicate with employees, one must be willing to ask questions to explore deeper issues of concerns, goals, and resources of the employee.
Effective communication should be in a casual and fluent manner or style. First meetings should help to create both rapport and reassurance so that employees will be able to reveal their genuine needs.
It is human nature to constantly seek external help and that is why they prepare themselves best in a safe environment.
6. Over-Coaching
BetterUp’s Coaching Culture Report also shows that coaching reduces employees’ stress by 22% and burnout by 32%.
But constant coaching or overcoaching can overwhelm employees, leading to burnout or disengagement.
You can check this by balancing coaching with periods of reflection and application. Allow employees to absorb feedback and work on improvement measures at their own convenient pace.
Besides, one should encourage improvement to avoid getting drained. It shall assist you in developing positive feedback, which in turn improves motivation and helps employees focus on personal development.
Key Skills for Managers in Coaching Employees Effectively
To coach employees effectively, you need more than just authority—you must develop specific skills that foster growth and performance.
Here are some important skills you must have as a manager:
1. Active Listening
You have to stop multitasking when your team member is speaking. For instance, avoid checking your phone or email.
Bow and accompany it with verbal acknowledgment such as “Got it” and “I follow you.” Basically, the idea most guardedly employed in coaching is asking questions rather than telling people what they should do.
It is important not to interrupt the speaker while they are making their point. Do not interrupt, criticize, argue, or debate—just listen calmly with an open mind. Lastly, make sure to respond to the employees’ feedback to demonstrate that their opinions matter in developing new actions or changes.
2. Empathy & Emotional Intelligence
It is always important to try and think like the employee in order to identify how they will act in any given circumstance.
If someone appears to be angry, a good manager accepts their anger.
You must celebrate your employees’ accomplishments and remind them that each success is a step forward.
Another good way to empathize with your employees and exhibit great emotional intelligence is to relate to them by sharing similar experiences you’ve had.
3. Goal Setting & Accountability
Coaching of the employees begins with the formulation of goals, which is extremely important. Ensure that people know what they need to do. Don’t allow for confusion in goals.
It is imperative that personal objectives are in spirit with the organizational mission as well as vision.Each person responds to different methods and not everyone benefits from the same approach.
Also, as a manager, it is important to note that every employee needs different goals. So, make sure to tailor goals to the specific strengths, weaknesses, and aspirations of each employee.
4. Constructive Feedback
Aim to support and guide rather than criticize.
Example: “I noticed you struggled with the client presentation. Let’s work together to develop a stronger pitch.”
Be Timely: Make sure to give feedback as soon as possible after having witnessed the particular action to make it pertinent. For instance, if you need to talk to an employee who failed to deliver a project on time, do it at the earliest convenience.
The “Sandwich” Method: The first feedback should be positive, followed by directions for improvement and then encouragement. For example: “I particularly admired the opening remarks that you made to the audience. But the analysis here requires further definition. I am quite sure you will be able to make it better.”
Upward Feedback Shouldn’t Be Neglected: Permit the employees to contemplate the feedback they receive. Use questions such as ‘How do you feel about this feedback,’ or ‘What do you make of this feedback.’
Identify strengths and areas for improvement in your engagement.
Measure satisfaction with work, colleagues, and the organization.
Evaluate the effectiveness of communication and decision-making involvement.
Assess trust and support from leadership.
Gauge satisfaction with workload, work-life balance, and workspace.
3. 360° Feedback
You can implement 360° feedback loops, like one-on-one meetings or anonymous feedback tools, to let employees share their experiences and views on the coaching process.
Such feedback helps you identify blind spots to enhance employees’ self-awareness, make informed performance appraisals, and even groom high-performing individuals to groom them for the future.
Coaches play a crucial role in facilitating these feedback sessions. To learn more, explore this detailed guide on the role of a coach in 360-degree feedback.
2025 Coaching Culture Trends & Innovations
AI-Supported Coaching Companions — AI tools help employees prepare for coaching sessions and set follow-up goals.
Generative AI for Personalized Development — GenAI suggests tailored learning resources and conversation prompts for coaches.
Company-wide Coaching Access — Coaching is no longer reserved for executives; all employees can access it.
Human-Centric Differentiation — As digital tools expand, the emotional intelligence and empathy of human coaches become even more valuable.
Activities & Tools to Bring Coaching Culture to Life in 2025
Monthly “CoachSwap” — Pair employees to coach each other on personal and professional goals.
AI-powered prompts — Deliver daily or weekly coaching cues via Slack/Teams (e.g., “Ask one open-ended question today”).
Coaching Flashcards — Provide managers with quick-reference cards for active listening, feedback, and trust-building.
Downloadable Toolkit — Offer templates for vision statements, readiness checklists, and manager coaching guides.
Coaching Circles — Small group sessions that combine peer feedback with skill-sharing.
Wrapping Up
Building a coaching culture is a transformative step for any organization, fostering an environment where continuous learning and growth are prioritized.
Make sure you understand that encouraging a coaching culture isn’t just the job of top leaders or managers; it’s a collective effort involving employees at every level. After all, coaching is meant to benefit the entire organization.
At Engagedly, we’re dedicated to helping you develop a thriving work culture that empowers your employees and drives organizational success. Take the first step towards transformation today—discover how Engagedly can elevate your coaching initiatives and explore the full potential of your workforce today!
FAQs
1. What is a coaching culture?
A coaching culture thrives on continuous development, where leaders and peers prioritize growth, collaboration, and learning, creating an environment where challenges turn into learning opportunities for everyone.
2. How does coaching culture impact the workplace?
A coaching culture enhances teamwork, accountability, and adaptability, improving engagement and performance.
It nurtures a growth mindset, empowering individuals to embrace challenges and innovation while fostering collaborative decision-making.
3. What are the skills of an effective coach?
An effective coach excels in empathy, active listening, and strategic questioning. They balance encouragement with constructive feedback, helping others unlock their potential and confidently navigate obstacles.
Employee performance management tools and techniques are two of the critical management tools that influence employee growth and organizational development significantly.
A Gartner report shows that 95% of managers are unhappy with their organization’s present performance management practices. If you take the time to review your processes and how you can best utilize performance management tools, it can help you keep your employees engaged as well as help your business get ahead of the competition.
A performance management system includes various important HR functions, like goal-setting, feedback, rewards, and performance review.
An effective performance management system helps HR managers establish clear performance expectations through which employees can easily understand what to expect out of their jobs. Moreover, it allows managers to reinforce individual accountability to meet their goals and evaluate their own performance for employees.
Most organizations use performance management systems suitable to their needs based on factors like industry, number of employees, etc.
Employee performance tools in 2025 are no longer just systems for annual reviews—they are dynamic, real-time platforms that monitor performance, drive engagement, and provide actionable insights for development.
Modern tools integrate real-time dashboards, AI-powered feedback loops, and predictive analytics to help organizations make data-driven talent decisions. They go beyond evaluation—focusing on continuous engagement, personalized coaching, and proactive performance optimization to keep employees aligned and motivated in hybrid and remote work models.
Why These Tools Matter in 2025
The role of employee performance tools has evolved significantly:
From Time-Based to Energy-Based Management – Organizations are shifting from measuring hours worked to tracking energy, engagement, and impact. (Source: The Guardian)
AI-Powered Coaching – Platforms like BetterUp and Paycom offer AI-driven career coaching, learning recommendations, and talent mapping. (Sources: Business Insider, Reuters)
Hybrid-Ready Integration – Seamless integration into workflows (Slack, Teams, HRIS) ensures tools fit into employees’ daily routines. (Source: The Guardian)
Predictive Talent Insights – AI algorithms identify potential burnout, disengagement, and high-potential talent before managers notice.
What Are Employee Performance Management Tools in 2025?
Employee performance management tools in 2025 go well beyond static review systems—they are continuous, AI-enhanced platforms designed to support ongoing development, real-time feedback, and goal alignment.
Key components include:
Live, interactive dashboards tracking progress and engagement
Energy-Based Performance Metrics: Organizations are focusing on employee energy and well-being—not just hours worked—using HR tools to detect burnout and engagement dips.
AI as a Growth Enabler: Tools like Paycom that apply AI for at-risk alerts and task automation are seeing increased adoption and revenue.
What Are HR Tools for Performance Management in 2025?
HR tools for performance management in 2025 are no longer just performance review systems—they’re AI-enhanced, cloud-native solutions designed for real-time alignment, development, and engagement across hybrid and global teams.
Key capabilities include:
Sentiment-aware pulse analytics and energy tracking to proactively address workload imbalances, motivation drops, and burnout risks.
AI-generated goal clarity and feedback frameworks (e.g., COIN method) to help managers write clear, bias-free, and actionable reviews.
Integrated workflows that align performance management with skills mapping and career growth via advanced e-HRM platforms.
Predictive analytics to forecast attrition risks and skill gaps before they impact productivity.
Why HR Tools for Performance Management Matter in 2025
Manager Effectiveness Crisis – Only 26% of managers feel confident in enabling performance effectively (Deloitte, 2025).
Surge in 1:1s & Continuous Feedback – 41% of organizations now prioritize weekly or bi-weekly check-ins instead of annual reviews (ThriveSparrow, 2025).
Hybrid Work Adaptation – Modern tools ensure fair performance evaluations regardless of location or schedule.
What is Performance Management?
Performance management is the process of establishing a motivating work culture in an organization, where employees and managers constantly review themselves and work towards a few common organizational goals.
Essentially, it includes goal-setting, goals tracking, ongoing check-ins, real-time feedback, 360-degree feedback, rewards and recognition, learning and development, and talent analytics.
What happens in an organization that doesn’t have a performance management system?
It fails to motivate its employees and leaves them directionless and disengaged. A system helps an organization build a skilled and efficient workforce, which increases its overall productivity. Here are some tools you can utilize to draw the best results.
It is important to define performance plans and objectives clearly. Having plans that are open-ended and unclear creates a lack of interest in employees. At the beginning of the year or at the
beginning of the quarter, managers meet with their employees and set clear goals and objectives for them. In this phase, managers plan on ‘how’ their employees should fulfill their goals and accomplish results. These goals should be SMART and challenging.
We recommend the use of goal-setting tools that help you create objectives and key results (OKRs and KPIs) and align your individual goals to those of the organization. Performance management tools like Engagedly can help you use OKRs and get the best out of them.
Frequent employee feedback is one of the best practices for tracking employee progress and improving it from time to time. This practice helps not only employees but also the team and the entire organization increase their productivity.
While most organizations already have digitized the process of employee feedback, many organizations claim that implementing a feedback tool has helped them create a culture of frequent feedback, which in turn, promotes employee engagement. These feedback tools also include 360-degree feedback and peer-to-peer feedback.
Encourage your employees to come forward and share frequent feedback with their managers. This practice helps you build a culture of trust and continuous development. Using employee feedback software can make this practice easier to implement. Engagedly allows users to share, receive, and request feedback from their managers, team members, and peers.
3. Employee Appreciation Tools
Most employers forget to appreciate their employees’ good work, but they specifically remember to criticize when something goes wrong. This practice not only promotes disengagement but also creates a sense of dissatisfaction in employees, which directly affects their productivity. So, always remember to appreciate and recognize the good work of your employees.
Using an employee recognition tool could be the start of changing your company culture to one that promotes appreciation and recognizes employees for even the smallest of their progress. Engagedly allows you to recognize and praise your employees socially for any contribution that they’ve made to the organization.
4. HR Management Tools
HR is undoubtedly one of the most crucial functions in any organization. Managing employees manually is time-consuming and exhausting for HR personnel.
Therefore, having automated HR management software at your organization can ease many daily HR activities and solve many HR management issues.
When looking for HR software, there are many things HR managers need to consider, such as ease of set-up, strong data security, good customer support, powerful performance management, etc. Besides those features, it is also important to find a performance management tool that can adapt to your needs and grow with you.
5. Performance Appraisal Tools
When it comes to having a performance management tool in place, performance appraisal is possibly the most ordinarily used one. It’s a powerful tool that can help an organization align its goals to individual ones and track their progress and performance over time.
But if you are looking to derive the best results out of this tool, you need to make sure that the appraisal process is a regular, fair, and constructive two-way conversation between your employees.
If you fail to create an environment where your employees can speak freely, they will get demotivated and will not stay with the organization for too long.
A performance development plan is a very effective mechanism for building up employee performance. Both managers and employees benefit greatly from the PDP process, which helps in identifying areas for growth, strategies to achieve that growth, goal setting, and tracking. Some key benefits of the tool include:
A definite path to achieve goals
Measurable goals, improvement, and results
More distinctive alignment with organizational and team goals
The PDP process encourages and motivates employees to direct their growth toward organizational progress. It helps streamline the performance process and inspires success. Engagedly’s LMS (Learning Management System) can help your organization in setting this process up for your employees.
7. Pulse Survey tool
Pulse survey tools are a simple, powerful, and flexible way of collecting employee feedback and reading the pulse of your employees. The result can help you understand your employees better and, in turn, can help your organization strategize for better employee engagement.
Proper engagement surveys come from a well-set intention and well-defined goals. Moreover, they need to be frequent enough to show trends in temperament and attitude. If the intention is unclear, these surveys will ask unimportant questions and receive vague responses.
In such a scenario, it won’t be compelling enough to take any action. Read here if you wish to know more about pulse surveys.
Performance Management Techniques
Organizations must have an effective performance management system. But no matter how good the system is, its success depends on the managers who implement it.
1. Plan
The planning stage comes first. Here, you define individual goals & strategies clearly and communicate them organization-wide so that your employees understand that meeting their individual goals contributes to the organizational goals.
Coordinate with your employees before setting up their individual goals and make sure that the goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
After you define the goals and strategies for your employees, you should constantly keep track of their improvements and take care of their developmental needs. Monitoring continually means providing ongoing feedback and consistently measuring employee performance.
It helps you check if the employees are meeting their goals as planned.
3. Rate
Rating means evaluating employees based on their performance standards. Though this step is a part of monitoring and giving feedback, it is considered a more formal way to evaluate employee performance. It also helps managers know who their best employees are.
Rating employees at regular intervals helps them improve themselves. It also helps managers look at and compare performance over time or across a set of employees.
4. Reward
Effective managers understand the importance of rewarding employees who perform well. Employees feel empowered and motivated when their work is recognized.
This leads to increased productivity in the organization. So reward the employees who meet your expectations or exceed your expectations.
5. Upgrade
Keep upgrading the goals & strategies at regular intervals. If your employees feel that their existing goals seem unattainable or that they have a negative impact on the organizational work culture, then it is time to coordinate with your employees and change them.
6. Mentor and Coach
It is said that there are no such things as poor performers. So if there are employees in your organization that are showing up with mediocre performance, then they are just waiting to be discovered for the right talent that they have.
With coaching and mentoring tools in place, your organization can bring out the best in every employee. If tapped right, can you imagine where these tools can take your organization?
The growing divide between employees and organizations has made it difficult to engage the workforce and lead them to a path of optimal performance.
Leaders need to be cognizant of their employees’ needs and take a progressive approach to meeting them. Performance management tools and techniques help human resource managers find blindspots and take corrective action.
Which performance management tools do you use in your organization? Let us know in the comments section below.
Frequently Asked Questions
Q1. What are performance management tools?
Ans. Performance management tools are real-time software that helps managers and leaders track the productivity of their team members. With the help of an inbuilt data management system, these tools organize and interpret the data to get productivity insights into the organization. These insights further help leaders in making informed decisions for organizational growth.
Q2. What are the four stages of performance management?
Q3. What are some of the performance management tools?
Ans. The following performance management tools are highly beneficial for businesses: goal setting, real-time performance analysis, surveys, Real-time feedback, learning and development, and 360 performance reviews.
Q4.What are the 5 elements of performance management?
The five elements of performance management are setting goals, tracking progress, developing skills, giving feedback, and evaluating results.
Q5.What are the 5 pillars of performance management?
The five pillars of performance management are planning, monitoring, development, evaluation, and rewarding achievements.
In the past, employee performance reviews typically took place once a year or, at best, bi-annually. These meetings were often stressful and unproductive, as managers struggled to remember details from months earlier, and employees felt blindsided by sudden feedback.
This traditional method of performance review has increasingly been replaced by continuous feedback, a system that allows for more consistent and meaningful interactions between managers and their teams.
Gallup data show that 80% of employees who have received meaningful feedback in the past week are fully engaged in their work. This statistic highlights the significant role that regular, constructive feedback plays in driving employee engagement, productivity, and retention.
Continuous feedback is a solution to the common pitfalls of annual reviews, helping both managers and employees thrive.
But what exactly is continuous feedback, and how does it help your organization thrive?
What is Continuous Feedback?
Continuous feedback is a structured approach where managers provide real-time, ongoing feedback to employees throughout the year, instead of waiting for annual performance reviews. This systematic approach creates a feedback culture in the organization.
For example, rather than discussing a project that was completed months ago, a manager may offer feedback right after a significant milestone, allowing the employee to learn and apply the feedback to their current work. This timely intervention ensures that employees are aligned with company goals and their personal development.
What Is Continuous Feedback in 2025?
Continuous feedback in 2025 goes beyond the simple exchange of performance comments. It’s now a dynamic, AI-enabled process that blends technology with human empathy to enhance workplace communication.
AI-assisted recognition platforms (like Workhuman’s Human Intelligence) are making feedback more emotionally intelligent, ensuring praise feels sincere and specific while keeping the human connection at the forefront.
Feedback is now collected in real-time across multiple channels—email, internal apps, SMS, and even chat tools like Slack or Microsoft Teams—allowing instant responses without waiting for a scheduled review. (inFeedo, 2025)
This shift has transformed feedback into a continuous conversation, not a calendar event.
Why Continuous Feedback Matters in 2025
Emotional & Cultural Impact
Feedforward (future-focused feedback) builds trust and reduces performance anxiety, especially as small and mid-sized businesses shift from formal reviews to agile coaching systems. (Business Insider, 2025)
Higher engagement rates, especially when feedback is given weekly or more frequently (Psico Smart Blog, 2025)
Gen Z Expectations
Younger professionals expect real-time recognition paired with personalized career development tools. They value immediacy, clarity, and digital integration. (The Times of India, 2025)
Continuous feedback benefits
1. Improved engagement
Straight away, one of the biggest improvements that can be seen with a culture of continuous feedback is an increase in engagement. There are plenty of statistics that point towards employees being unhappy with the amount of feedback they are receiving.
Consider the following statistics:
27% of employees strongly agree that the feedback they receive helps them improve their performance.
According to Gallup, only 21% of millennials and 18% of non-millennials meet with their managers weekly. The majority—56% of millennials and 53% of non-millennials—meet with their managers less than once a month.
Meaningful and consistent feedback helps employees feel valued, reinforcing the connection between their work and the organization’s goals. When employees know their contributions are recognized and aligned with the company’s objectives, they are more motivated to improve and stay engaged.
2. Decreases attrition
High employee turnover is costly, both in terms of recruitment expenses and loss of institutional knowledge. One of the key drivers of employee attrition is the lack of recognition or constructive feedback. When employees feel unappreciated or ignored, they are more likely to leave.
Feedback can mean anything, even noise. On the other hand, constructive feedback not only takes into account the person receiving the feedback, but also their skills and competency and the work they are doing.
3. Increased productivity
When employees receive continuous feedback, they can adjust their performance in real-time, leading to higher levels of productivity. Consistent feedback means there is less room for errors to accumulate, and employees can address issues before they become larger problems.
Example: A sales team that receives regular feedback is more likely to refine their approach, leading to higher sales and better outcomes. Implementing a continuous feedback system not only helps with individual growth but also contributes to overall team performance.
Sometimes, feedback is the push most of us need to try a new approach or to keep going on a difficult path. Feedback eases the way because employees know their manager is paying attention and invested in their work.
For more information on how performance management software can enhance productivity and streamline continuous feedback, check out this article on Continuous Performance Management Software.
4. Provides an accurate account of employee performance
A continuous feedback system offers a more accurate and holistic view of an employee’s performance. Unlike traditional reviews, which focus on a specific time frame, continuous feedback captures an employee’s development over time, highlighting both successes and areas for improvement.
For example, an employee may have had a slow start to the year but steadily improved after receiving feedback. By the end of the year, their consistent improvement can be documented through ongoing feedback, offering a more balanced and fair evaluation.
While continuous feedback drives performance, there are risks:
Feedback Fatigue – Too much feedback, too quickly, can overwhelm employees and dilute its impact.
Inconsistent or Biased Feedback – Without manager training, feedback may feel unfair or unhelpful.
Perception of Surveillance – If implemented poorly, systems can feel judgmental rather than developmental.
Best Practices for Giving Continuous Feedback
Use Real-Time Examples: Feedback should be tied to recent tasks or achievements so that employees can immediately relate to the feedback and apply it to their work. For example, if a marketing campaign was particularly successful, highlight what the employee did right and suggest improvements for the next project.
Set Clear Goals: To ensure feedback is actionable, it’s essential to link it to clear, achievable goals. Instead of general comments like “good job,” frame feedback as “Your analysis of market trends was thorough and helped inform our strategy. Let’s aim to deepen our data analysis for future campaigns.“
Foster Two-Way Communication: Encourage employees to provide feedback to their managers. This opens up dialogue and ensures the continuous feedback process is a collaborative effort.
Be Constructive, Not Critical: Feedback should aim to improve performance without discouraging the employee. For example, instead of saying “Your report was poorly written,” offer specific suggestions: “The structure of your report could be clearer. Perhaps we can focus on making the introduction more concise.“
2025 Trends & Innovations in Continuous Feedback
AI-Assisted Gratitude Tools – Platforms that craft sincere, situation-specific praise messages at scale.
Pulse Survey Analytics – Multichannel micro-surveys (via SMS, Slack, or email) that improve response rates and reach distributed teams.
Gamified Feedback Mechanics – Turning recognition into challenges or rewards, boosting participation and retention.
Final thoughts
Continuous feedback is more than just a trendy management strategy—it is a tool for increasing engagement, boosting productivity, and lowering attrition. By fostering an open dialogue between managers and employees, organizations can create a feedback culture that drives better performance and professional growth.
Frequently Asked Questions
Q1. How does continuous feedback help employee development?
Continuous feedback fosters employee development by providing regular insights into their performance, areas for improvement, and opportunities for growth. This ongoing dialogue allows employees to make timely adjustments and encourages them to take ownership of their professional development.
Q2. What tools can be used for continuous feedback?
There are many digital tools available that help facilitate continuous feedback. Platforms like Engagedly, 15Five, and Lattice offer comprehensive feedback management systems that allow managers and employees to track goals, performance, and feedback in real-time.
Q3. How does continuous feedback align with business goals?
Continuous feedback ensures employees are constantly aligned with the company’s goals and objectives. Regular check-ins provide managers with the opportunity to steer employees in the right direction, ensuring that individual efforts contribute to the organization’s overall mission.
Layoffs have become common in the post-pandemic world. In 2023, US tech companies laid off 160,000 workers. The economic downturn has also compelled businesses to implement hiring freezes, leaving several technical positions unfilled. Moreover, there is a persistent shortage of skilled talent. In many parts of the United States, job openings outnumber available candidates, making it challenging to find, hire, and retain qualified technical personnel.
This shortage of talent is not limited to the United States but is a global issue. There is a high demand for tech talent, yet the supply remains low. This shortage affects all IT sectors, including computing infrastructure and security, thereby hindering organizations’ ability to compete effectively. More concerning is the projection that the talent shortage will continue to worsen.
Given this increased demand for tech candidates, how can organizations address the talent gap and find the skilled professionals they need to grow and stay competitive? But before discussing that, let us delve into the concept of tech talent and the key factors that influence their acquisition and retention.
What Does High-Potential Tech Talent Look Like?
Core Traits & Indicators:
Emotional Intelligence – Navigates team dynamics and conflict with empathy and self-awareness.
Learning Agility & Growth Mindset – Embraces new challenges, feedback, and continuous upskilling.
Adaptability & Pressure Resilience – Thrives in ambiguous, high-pressure situations,
Strategic Thinking & Drive for Results – Looks ahead and converts goals into impactful outcomes
How to Assess High-Potential Tech Talent
Skills Assessments & Competency Mapping – Use tailored assessments to evaluate both technical and leadership capabilities.
360° Feedback & Behavioral Interviews – Gather diverse perspectives and situational responses to reveal potential beyond performance metrics.
Stretch Projects & Simulations – Observe initiative, adaptability, and problem-solving in real-world challenges.
High-Performance & Engagement Analytics – Analyze performance KPIs, engagement surveys, and leadership assessments (e.g., via Talent Analytics).
Developing & Retaining High-Potential Tech Talent in 2025
Personalized Learning Paths & Upskilling in Emerging Tech – Emphasize AI, cloud, cybersecurity, and advanced dev skills.
Mentorship, Coaching & Cross-Function Exposure – Foster strategic thinking and internal mobility through structured guidance.
Succession Planning & Internal Talent Pipelines – Involve HiPos in leadership discussions and ensure readiness for advancement.
Employee Engagement, Autonomy & Recognition – Promote value alignment and ownership to deepen loyalty
What Is Tech Talent?
Tech talent comprises individuals with knowledge and expertise in technology-related areas. This workforce is skilled in software development and programming, computer support, database systems, engineering, and computer and information systems. In today’s world, with technology seeping into every aspect of businesses, finding high-potential technical talent can help businesses stay ahead, save money, and drive growth.
Benefits of Hiring and Retaining Top Tech Talent
Organizations are expected to experience an even larger impact from integrating technology in the future. The need for the correct technological skills will only grow as organizations rely on technology for communication, productivity, and gaining competitive advantage. Here are three ways the right tech talent proves vital to an organization:
Organizations Can Adapt to Changing Technologies with the Right Tech Talent
In today’s rapidly evolving world, having the right tech talent is crucial for organizations to stay ahead of the curve. As new technologies like artificial intelligence, 5G, cloud computing, blockchain, and virtual/augmented reality continue to emerge, businesses face significant integration challenges.
In high-tech industries, the pressure to foster a tech-enabled culture is especially high, given the ever-changing landscape of competition and business models. To keep up with the growing competition from startups and tech companies, businesses must prioritize building a highly skilled workforce.
The Right Technology Experts Reduce Costs and Boost Profit
Mismanaged technologies can turn into a major financial strain. The right tech talent team can help organizations avoid expensive mistakes. With the skills and knowledge to effectively use technology, tech talent can help save costs and drive revenue.
By implementing streamlined and efficient tech solutions, organizations can not only reduce operational costs but also position themselves for long-term financial success. Tech experts play a crucial role in identifying opportunities for automation and optimization, leading to enhanced productivity and resource utilization. Their proactive approach ensures that technology aligns seamlessly with business objectives, fostering a cost-effective and profit-boosting technological landscape.
The Right Tech Talent Can Help Organizations Attract and Retain Top Talent
Tech trends have undoubtedly permeated every aspect of HR processes, influencing the entire employee life cycle from recruitment to retirement. The recruitment process itself has experienced a revolution thanks to technology, with AI tools and predictive analytics empowering recruiters to enhance efficiency and convenience.
Interestingly, a staggering 90% of Fortune 500 companies now utilize recruitment software. Moreover, a recent survey unveiled that 68% of recruiters firmly believe in harnessing the power of new technology to bolster recruiting efficiency.
Beyond these advantages, tech talent brings numerous benefits to businesses. With the rise of quiet quitting and the great resignation, the battle to attract and retain top performers has become more challenging yet crucial than ever before. According to the Bureau of Labor Statistics (BLS), the average annual labor force turnover rate sits at 57%. Consequently, companies must reimagine their employee engagement and retention strategies in order to continuously attract and retain top talent for the long haul.
Rethink Employee Experience: Hiring and Retaining High-Potential Talent
There is a significant shortage of talent in the IT and tech sectors globally, with a staggering 78% gap. As companies face the challenge of sourcing, recruiting, and retaining the best technical talent, it becomes crucial to reimagine the employee experience for sustainable business growth. Offering competitive pay alone is no longer sufficient. To attract and retain high-performing individuals, companies must grasp the evolving priorities of employees and meet their expectations. Here are the key practices that companies should consider to shift their emphasis toward recruiting and retaining top tech talent.
Offer More Learning and Development Opportunities
Tech talent thrives on continuous learning and growth. With rapid technological advancements, staying current is crucial to prevent skills from becoming obsolete. A well-designed career advancement framework empowers employees to proactively acquire new skills and knowledge, ensuring they remain valuable assets to the organization.
Beyond simply offering promotions, organizations should embrace a comprehensive career pathing approach. This involves implementing transparent, objective, and personalized succession policies. Understanding what motivates and inspires your tech talent is key to fostering engagement and maximizing their potential. Blindly promoting individuals without proper guidance can lead to disengagement and hinder overall productivity.
Here are some pro tips for providing effective learning opportunities to your tech team:
Offer challenging assignments that extend beyond their daily tasks. This hands-on experience fosters growth and allows them to apply their skills in new contexts.
Equip them with diverse training resources. Consider online courses, conferences, workshops, and internal knowledge-sharing initiatives to cater to different learning styles and preferences.
Promote transparency and open communication. Share organizational challenges, future direction, and strategic goals to foster a sense of purpose and ownership among your team.
Create a platform for open discussions and feedback loops. This allows employees to voice concerns, share ideas, and contribute to the overall direction of the team and organization.
Provide access to coaching and mentoring programs. Pairing experienced individuals with new hires or high-potential employees can accelerate learning and provide valuable guidance and support.
Help them visualize their contribution to the bigger picture. Clearly demonstrate how their individual growth and skill development ultimately benefit the organization and contribute to achieving its objectives.
Offer Flexibility
A global study conducted by EY reveals that 74% of workers actively seek work flexibility in their current job roles. Workers are looking for organizations that understand and meet their expectations, which may include flexible working hours, telecommuting, or other work arrangements. Another study by PayScale supports this notion by stating that, in addition to fair compensation, employees find flexible schedules, remote work options, and dedicated paid time off (PTO) appealing in a job role.
It is important to note that flexibility can vary among individuals, as not all candidates are interested in hybrid arrangements or flexible work hours. For instance, some candidates may prioritize job locations that offer a conducive environment for their families. In such cases, recruiters should emphasize the benefits of the new job location, such as family-friendly neighborhoods, high-quality schools, and favorable taxation policies. Additionally, offering a relocation package can help the candidate and their family settle into the new location more comfortably.
Design a Robust Rewards and Recognition Policy
A supportive work environment is crucial for fostering employee engagement and loyalty. Recognizing and rewarding employees for their contributions not only motivates them but also turns them into valuable brand ambassadors for the company. A study conducted by Gallup Wellbeing and Workplace Study reveals that when employees’ efforts are acknowledged, their connection to the organization becomes significantly stronger, leading to increased productivity.
In addition to recognition and rewards, companies should prioritize diversity and inclusion in their talent acquisition strategies. Research shows that 39% of workers would decline a job offer if an organization did not promote inclusivity. Therefore, businesses must consider the unique value proposition for their employees and recognize the importance of job flexibility and modern technology. Investing in diversity and inclusion efforts will further enhance the work culture and attract top talent
In a challenging post-pandemic landscape with layoffs and talent shortages, retaining high-potential tech talent is critical. The right tech experts not only prevent financial strains but also drive innovation and cost-effective solutions. Attracting and retaining top tech talent ensures organizational resilience in the face of evolving technologies. To bridge the talent gap, companies must reimagine the employee experience with continuous learning, flexibility, and robust rewards. Embracing these practices ensures organizational success in a competitive landscape driven by high-potential technical talent.
If you are an organization seeking assistance in creating an attractive and engaging work culture, Engagedly can help! Engagedly offers cloud-based solutions to cater to all your HR and related processes, streamlining the organization’s functioning to create a high-performance culture. Book a demo today!
Frequently Asked Questions
What role does technology play in attracting and retaining top talent, especially in the current job market?
Technology plays a crucial role in attracting and retaining top talent by influencing HR processes, enhancing recruitment efficiency, and fostering a tech-enabled culture. In a job market marked by the great resignation, tech talent is essential for sustaining workforce quality.
What does the concept of stretch assignment refer to in tech talent management?
A stretch assignment in the tech world refers to a job that requires advanced skills and knowledge. A temporary or permanent job assignment helps employees find new challenges and grow beyond their current capabilities and skills.
What is the technology skill gap?
The technology ability gap refers to the difference between what a company needs regarding knowledge and skills within its staff and their actual capabilities. An organization should periodically analyze the talent gap across different levels, from individual to business enterprise-wide.
Did you know that 73% of business executives expect talent shortages over the next few years ? In 2025’s competitive talent landscape, organizations that master the 9 box talent review process are 3x more likely to retain top performers and build successful succession pipelines.
In this comprehensive guide, you’ll learn:
How to implement a 9 box talent review system from scratch
Reading time: 12 minutes | Includes downloadable resources
The 1970s GE model inspired the 9-box grid, which rates employees based on their potential and performance. This strategy helps companies find future leaders and create career paths to keep a strong pipeline of qualified candidates – but the 2025 version addresses modern workplace challenges like remote performance evaluation and AI-assisted talent analytics..
What is a 9-Box Talent Review?
Human resources evaluate and map out employees’ performance and potential using the dynamic 9-box talent review framework. A 3×3 matrix representation of this grid is necessary for effective talent management. It helps managers distinguish between employees based on their past contributions and future potential.
The 9-box model also known as the 9-box review essentially graphs nine potential employee types based on potential and performance, two crucial aspects. While performance measures how successfully an employee meets and exceeds job criteria, potential measures an individual’s ability to take on more significant responsibilities in the future.
The 9 Box Talent Review Grid Visualized
[Insert visual 9-box grid image with clear labeling]
Understanding Each Quadrant:
HIGH PERFORMANCE AXIS (Right Side):
Stars (High Potential, High Performance): Your future leaders
Specialists (Low Potential, High Performance): Expert contributors
Strong Contributors (Moderate Potential, High Performance): Solid performers ready for growth
MODERATE PERFORMANCE AXIS (Center):
Emerging Leaders (High Potential, Moderate Performance): Need development
Core Team (Moderate Potential, Moderate Performance): Reliable workforce
Performance Axis: This axis assesses a worker’s performance in their current position, considering output, work quality, and skill proficiency.
Potential Axis: This determines a worker’s ability to advance and take on more demanding and senior-level responsibilities.
The Grid: The nine boxes are organized from top right (high potential, high performance) to bottom left (low potential, low performance). Each box offers special features that help managers make informed decisions.
The Nine Boxes of the 9-Box Talent Review
The Nine Boxes of the 9-Box Talent Review provide a comprehensive overview of each individual’s development and contribution level. They represent an intentional synthesis of employee performance and potential. Below is a summary of each box:
1. Low Potential, Low Performance
Employees who require assistance in their existing roles hesitate to take on more difficult jobs.
Action Plan:
Consider transferring to more relevant tasks.
Develop specific skills.
Keep an eye on any changes to ensure they improve.
2. Low Potential, Moderate Performance
Dependable workers with little room for advancement but who perform effectively in their current positions.
The Importance of 9-Box Talent Reviews in Modern HR Practices
The 9-box talent review is a strategic tool for modern HR operations, not just an evaluation tool. It is the foundation of effective HR management in the following ways:
1. Enhanced Succession Planning
The 9-box review assists in the critical work of good succession planning, which is necessary for long-term business success, by identifying potential leaders early on. It is more difficult than ever to fill key positions since there are many more job openings than candidates—10.9 million vs. 6.3 million.
2. Complying with Business Goals
The 9-box model’s strategic needs directly impact the organization’s personnel performance and potential. This ensures that HRM programs support and improve corporate goals, allowing businesses to grow and change successfully.
3. Identifying Future Leaders
The 9-box talent review is critical for identifying high-potential people who are well-suited to leadership positions. Organizations may establish a strong pipeline of qualified leaders by proactively recognizing them and preparing them to step into critical positions as opportunities arise.
4. Tailored Development Programs
Businesses must make the most of their current staff, as 44% of workers indicate no interest in returning to traditional jobs. HR directors may ensure that talent is prepared for present and future problems in a competitive labor market by using the 9-box review. This will help them establish focused development plans based on employee performance and potential.
5. Workplaces with Hybrid Environment
Evaluating performance in a hybrid setting is difficult since employees work an average of 3.2 days per week, and workplace attendance is 30% lower than before the pandemic.
HR teams, on the other hand, may effectively manage and extend the talent management process in hybrid models thanks to the standard framework provided by the 9-box talent evaluation for assessing performance and potential.
How to Conduct a 9-Box Talent Review
The 9-box talent review is an essential tool for strategic talent management. It provides an organized method for identifying and nurturing organizational talent.
However, effective implementation of this evaluation necessitates thorough planning, cautious execution, and deliberate follow-up. Here is a detailed guidance on how to carry out each stage.
Preparation: Steps to Prepare for a Review Session
Step 1: Communicate the Purpose and Process
To promote transparency and buy-in, inform all stakeholders about the goals and methodology of the 9-box review. This includes clarifying how the data will be used and the potential outcomes for employees.
Step 2: Educate Assessors Completely
Conduct training sessions for managers and HR specialists participating in the review procedure to guarantee uniformity in comprehension and implementation of the 9-box grid standards.
Step 3: Schedule Reviews Strategically
Organize review sessions during periods of low operational pressure to ensure that all participants are focused and undistracted. Consider multiple short sessions over a single lengthy session to reduce fatigue.
Execution: Best Practices During the Assessment Process
Ensure Consistency: Use the same evaluation standards for all employees to prevent bias and ensure fairness across the organization.
Facilitate Open Dialogue: Encourage managers to discuss their assessments with each other to gain multiple perspectives and refine their evaluations. This collaborative approach can help achieve a more balanced view of each employee.
Document Insights and Decisions: Maintain detailed records of discussions and decisions to provide a reference for future reviews and to track employees’ progress.
Utilize Multiple Assessors: Involve more than one evaluator per employee, particularly for high-stake decisions, to minimize personal biases and enhance the objectivity of the review.
Follow-up: Actions to Take Post-Review to Ensure Effectiveness
Communicate Outcomes: Clearly articulate the review results to both management and employees to ensure everyone understands their next steps and the expectations going forward.
Develop Individualized Action Plans: Tailor development plans for each employee based on their specific placement in the 9-box grid, focusing on enhancing their strengths and addressing areas for improvement.
Monitor and Adjust Development Progress: Regularly review the progress of development plans and make adjustments as necessary based on feedback and changing business needs. This can involve additional training, new assignments, or changes in career paths.
Schedule Regular Review Updates: Plan for periodic follow-up reviews to reassess employee placement on the 9-box grid and update development plans accordingly. This ensures the talent management strategy adapts to personal growth and evolving organizational goals.
Problem: Overweighting recent performance over annual contributions
Solution: Use structured data collection across the full review period
2. Potential vs. Performance Confusion
Problem: High performers automatically assumed to have high potential
Solution: Separate assessment criteria and multiple evaluator input
3. Forced Distribution Errors
Problem: Trying to fill each box equally regardless of actual talent distribution
Solution: Let natural distribution emerge from objective assessments
4. Lack of Calibration Between Managers
Problem: Inconsistent standards across different departments
Solution: Mandatory calibration sessions with examples and benchmarks
5. Insufficient Follow-Through
Problem: Conducting reviews without actionable development plans
Solution: Link each placement to specific development actions and timelines
6. Transparency Issues
Problem: Employees unaware of their placement or development focus
Solution: Clear communication protocols and development conversations
7. Static Annual Reviews Only
Problem: Treating 9 box as a once-yearly checkbox exercise
Solution: Quarterly mini-reviews and continuous development tracking
Tactics for Effective Implementation of 9-Box Talent Reviews
Effective implementation of the 9-box talent review process requires strategic tactics that ensure evaluation accuracy and that the process is dynamic and integrative with organizational practices. Below are key strategies to enhance the effectiveness of your 9-box reviews.
Training for Managers: Importance of Training Evaluators
Comprehensive Understanding: Ensure all evaluators fully understand the 9-box model’s dimensions, performance, and potential.
Assessment Consistency: Train managers to apply evaluation criteria consistently to avoid biases and ensure fairness.
Decision-Making Skills: Focus on enhancing managers’ ability to make informed decisions about talent development and placement.
Scenario-Based Training: Use real-life scenarios during training to help managers practice applying the 9-box model effectively.
Regular Updates and Feedback: How Continuous Feedback Enhances the Process
Real-Time Adjustments: Provide real-time feedback to employees, allowing for immediate developmental adjustments.
Motivation and Engagement: Continuous feedback keeps employees motivated and engaged by showing progress and areas for improvement.
Performance Trends: Regular updates help track performance trends over time, providing a deeper insight into employee development needs.
Feedback Loops: Establish feedback loops between employees and managers to foster a culture of open communication and continuous improvement.
Integration with HR Software: Leveraging Technology for Efficient Reviews
Automated Data Collection: HR software can be used to automate the gathering and analysis of performance data.
Visualization Tools: Implement tools that visually map out the 9-box grid, making it easier to understand and use.
Accessibility and Updates: Ensure the 9-box data is easily accessible to authorized personnel and can be updated in real-time.
Integration with Other HR Functions: For a holistic approach, connect the 9-box system with other HR processes, such as training programs and performance appraisals.
9 Box Talent Review Success Stories and ROI
Case Study 1: Tech Company Transformation
Challenge: 40% annual leadership turnover, poor succession planning Implementation: Comprehensive 9 box system with quarterly reviews Results:
60% reduction in leadership turnover within 18 months
85% of promotions filled internally (up from 30%)
$2.3M saved in external recruitment costs
Case Study 2: Manufacturing Organization
Challenge: Aging workforce, knowledge transfer concerns Implementation: 9 box focused on succession and knowledge retention Results:
95% successful leadership transitions
40% improvement in employee engagement scores
Zero critical knowledge loss during retirements
Measuring 9 Box ROI in Your Organization:
Key Metrics to Track:
Internal promotion rate (target: 70%+)
Leadership turnover reduction (target: 50%+)
Employee engagement improvement (target: 25%+)
Time to fill critical roles (target: 50% reduction)
In this discussion, we’ve explored the 9-box talent review system, a powerful tool for assessing and developing organizational talent. The benefits are clear, from understanding its basic framework and significance in aligning HR practices with business objectives to implementing it. The 9-box review identifies potential leaders and ensures a strategic approach to talent management.
If you haven’t incorporated the 9-box review into your talent management strategy, or if it’s time for a reassessment, consider the insights shared here. Embrace this model to enhance your organization’s ability to develop a robust leadership pipeline and maintain competitive advantage.
Start today by assessing your current practices and plotting your path forward with the 9-box system. Visit Engagedly to learn how our tools can streamline and enhance your talent review processes.
FAQs
1. What is the ideal frequency for conducting 9-box talent reviews?
2. How do you handle discrepancies in assessments during a 9-box review?
Address discrepancies through calibration meetings where managers discuss and align their assessments to ensure a consistent approach and understanding.
3. Can the 9-box model be adapted for small businesses?
Yes, small businesses can scale the model to fit their size by simplifying the criteria or focusing on key roles critical to business success.
4. What are the common challenges when implementing a 9-box talent review?
Challenges include ensuring evaluator training, maintaining unbiased assessments, and integrating the review outcomes with actionable development plans.
5. How should feedback from a 9-box review be communicated to employees?
Feedback should be direct and constructive and include specific developmental advice to help employees understand their current positioning and potential growth paths.
“The Global Human Capital Trends report by Deloitte highlighted that 49% of executives found their Performance Management Process to be ineffective and required a complete overhaul.” The statistics highlight the importance of using the right performance management software to derive effective results.
In the last two years, organizations have remodeled their business processes to contain the impact of the pandemic and thereby boost the productivity of their employees working remotely and from the office.
However, regarding performance management, the achievement is not significant. A survey conducted by Kronos found that 95% of HR leaders feel that employee burnout is sabotaging their workforce retention. The problem calls for robust performance evaluation and performance review software that uses crucial parameters in managing and monitoring the workforce.
By utilizing performance review software, organizations can ensure that their review process is structured, efficient, and focused on measurable outcomes, ultimately leading to better employee performance and engagement.
This article will help you understand the intricacies of performance management systems and will explore the various features of top 10 performance management software. We will unpack the following in the below sections:
Employee performance software in 2025 goes far beyond basic review systems—it’s a real-time, AI-powered platform that tracks outcomes, enables continuous feedback, and supports strategic development. It includes features like:
Live performance dashboards
Two-way feedback loops and recognition tools
Predictive analytics for talent insights
Seamless integration with communication channels and HR ecosystems
Today’s software powers ongoing performance dialogue and development, not just annual checkboxes.
Why Employee Performance Software Matters Today
Data + Trust Gaps: Deloitte reports that 72% of employees distrust current performance management systems.
Engagement & Outcomes: Continuous systems help managers coach in real time—boosting alignment and performance.
AI Adoption & Demand: Companies like Paycom saw a rise in demand after adding AI-driven task automation and at-risk employee alerts.
15Five – Focuses on manager effectiveness and employee engagement
Leapsome – Combines OKRs, feedback, and learning in one platform
Reflektive – Strong in real-time feedback and engagement tracking
PerformYard – Data-rich platform for customizable performance reviews
Betterworks – Goal-focused tool with actionable insights and feedback
Lattice – Unified platform for performance, engagement, and development
7Geese/Paycor – Integrated HCM with OKRs and coaching tools
ClearCompany – Combines performance, hiring, and workforce planning
Small Improvements – Lightweight solution for continuous feedback and reviews
What is Performance Management Software?
Performance management is a tool used by organizations globally to increase employee productivity and help them become successful in their job roles. The process encompasses continuous communication between a manager and employees for the mutual achievement of organizational goals.
Changing business needs and the latest technological developments have given rise to new-age performance management software that helps in holistic workforce management. The traditional practice of annual performance review is now transitioning into continuous process management.
The latest developments in performance management involve setting clear objectives and goals, task assignments, frequent check-ins, providing feedback at regular intervals, and analyzing the results. Through this, managers and leaders can track the performance of their employees and provide them feedback in real-time to help them perform better at their jobs.
Performance management helps organizations in utilizing the complete potential of their employees and provides effective measures to increase employee engagement, collaboration, and retention. Through the analytics feature offered by the tools, executives can look into the intricacies of performance management and create an actionable plan for performance improvement.
Importance of Performance Management Software
The primary aim of business performance management is to align leaders, managers, team members, and resources to meet the strategic goals of the business. By providing metrics to measure the performance and productivity of the system, leaders can gauge the early signs of a potential threat and create workarounds to get the business on track.
Continuous Performance Management (also known as Agile Performance Management) helps in creating a productive and skilled workforce by analyzing the performance gaps and offering solutions to increase productivity through training and mentoring.
Performance management tools are becoming increasingly important for organizations to be successful in the current business environment. By adopting performance management measures, leaders can understand the factors that are working well for the business and seek better results through proper implementation.
Employee performance management software can be highly beneficial to organizations. The following points highlight its importance in the workplace.
(Globally, 85% of employees are disengaged or not actively engaged at work, resulting in massive loss of business and revenue- A report by Gallup). Employee engagement and productivity are directly linked to the success of an organization. Engaged employees are involved actively in their work and can create strong bonds with their colleagues.
By utilizing continuous performance management, organizations can create an environment of trust, support, and encouragement. Strategic implementation of a performance management solution helps in aligning the individual goals with the organizational goals.
Employee Reskilling and Upskilling
A LinkedIn 2021 workplace learning report shows that 94% of employees would have stayed longer at their last organization had the company invested in their learning and development. The report also highlighted that the interest and zeal to learn is highest among the younger workers belonging to Gen Z.
Providing mentoring and coaching to employees not only helps them perform better at their jobs but also motivates them to take up more responsibilities. By reskilling and upskilling employees, organizations can attract new talent and train existing employees to take up managerial positions.
Employee development is at the heart of business performance management solutions, and organizations can reap numerous benefits by using them effectively.
Improves Workplace Communication and Collaboration
A report by McKinsey highlights the importance of communication in the workplace. It states that improved communication can increase the productivity of interacting employees by 20-25%. Another report by CMSWIRE states that 85% of employees use more than one device for communication.
The statistics outline the importance of clear and efficient workplace communication. The major difference between a performing and a non-performing team is efficient communication. By improving communication in the workplace, organizations can improve employee efficiency and mitigate critical risks that lead to the failure of the organization.
Top 10 Performance Management Systems in 2025
The successful implementation of software can cause a ripple effect in the organization. It helps in aligning the workforce towards the business goals and makes employee engagement and collaboration easier.
As many organizations are paving their way to digitizing and modernizing their performance systems, the following list of employee performance management software will be helpful to them in selecting the right tool that matches their organizational needs and objectives.
Engagedly is an AI-powered talent management platform designed to help organizations build high-performing, people-first cultures. At the heart of Engagedly is Marissa AI, an Agentic AI layer that automates repetitive HR tasks, delivers real-time insights, and empowers HR leaders, managers, and employees to focus on strategic, impactful work.
Built around the E3 framework—Engage, Enable, Execute, Engagedly seamlessly blends performance management, employee engagement, development, and recognition into one unified platform. From OKRs and 360-degree feedback to skill development and cultural alignment, every feature is designed to drive measurable outcomes.
What Sets Engagedly Apart:
Agentic AI Capabilities: Role-based AI agents handle tasks like onboarding, feedback nudges, learning recommendations, meeting summaries, and engagement analysis—freeing up teams for high-value work.
Scalable & User-Friendly: Intuitive for both employees and HR teams, and adaptable across organizations of all sizes.
Proven Impact: Companies using Engagedly have seen 2.5× faster goal alignment, 60% reduction in review cycle time, and over 30% improvement in employee development plan completions.
Key Solutions Offered:
OKR & performance management consulting
Performance reviews & 360 feedback
OKR alignment, goal setting & tracking
Continuous 1:1 check-ins & project reviews
Leadership development & succession planning
Employee engagement surveys & analytics
Personalized learning & skill-building paths
Onboarding workflows
DEI & cultural alignment initiatives
AI-driven talent insights & recommendations
2. Lattice
Lattice provides engaging features for enterprises and supports employee growth and development. The software uses intelligent methodologies to combine performance management, employee engagement, and employee development into one holistic solution.
Solutions offered by lattice:
Goal Management & OKRs: Set, track, and align organizational, team, and individual goals with OKR frameworks, ensuring visibility across the company.
Performance Reviews: Conduct structured annual, quarterly, or project-based reviews with customizable templates and rating scales.
360-Degree Feedback: Facilitate peer, manager, and self-assessments to provide well-rounded performance insights.
Real-Time Feedback: Allow employees and managers to give and receive instant recognition or constructive feedback.
Engagement Surveys & Pulse Checks: Measure employee sentiment with customizable surveys and AI-driven analytics.
Employee Growth Plans: Create personalized career development plans tied to skills, competencies, and organizational needs.
3. 15Five
15Five is a tech-powered platform that offers employee engagement, continuous performance management, and manager effectiveness. The solution combines software, education, and community to build effective managers and improve employee performance.
Solutions offered by 15Five:
Weekly Check-Ins – Simple surveys that keep managers informed about employee progress, challenges, and morale.
Continuous Feedback – Real-time feedback tools that encourage timely recognition and constructive input.
OKR & Goal Tracking – Aligns individual and team objectives with organizational goals, with progress tracking dashboards.
Engagement Surveys – Science-backed surveys to measure employee engagement and identify improvement areas.
1-on-1 Meeting Agendas – Structured templates and scheduling tools to make manager-employee conversations more productive.
Performance Reviews – Streamlined review cycles with customizable forms, rating scales, and automated reminders.
4. Leapsome
This software provides a continuous cycle of performance management and personalized learning through features like OKR management, performance reviews, employee engagement surveys, feedback, and praise. It helps in aligning the workforce towards organizational goals.
Solutions offered by leapsome:
Performance Reviews & 360° Feedback – Fully customizable review cycles, competency frameworks, and role-based feedback to ensure fair and actionable evaluations.
Goals & OKRs Tracking – Set, align, and monitor organizational, team, and individual goals, with visual progress dashboards to keep everyone on track.
Continuous Feedback – Real-time recognition and constructive input between peers, managers, and direct reports to build a feedback-rich culture.
Employee Engagement Surveys – Customizable pulse surveys with analytics to measure engagement drivers and address problem areas proactively.
Learning & Development Modules – Personalized learning paths, skill frameworks, and integration with external learning content.
Competency Frameworks – Define skills and expectations for each role to guide employee development and performance measurement.
5. Reflektive
Reflektive is a comprehensive performance evaluation software that assists in business growth through continuous improvement. The tool helps increase productivity through constructive employee engagement and driving growth through high-performance-driven teams.
Solutions offered by Reflektive:
Real-time Feedback
Easy and quick employee recognition
Multiple user tagging
Performance and talent calibration
Increase and measure employee engagement through surveys
6. PerformYard
PerformYard is a scalable performance management platform that provides intelligent insights about the workforce through data-driven features. It helps in executing performance reviews, frequent check-ins, real-time feedback, and inputs from throughout the organization.
Solutions offered by Performyard:
Customizable Performance Review Cycles – Create review schedules that fit your business rhythm, from quarterly check-ins to annual appraisals.
360-Degree Feedback – Gather multi-source feedback from peers, managers, and direct reports for a balanced employee performance view.
Goal Setting and Tracking – Align individual and team goals with organizational objectives, track progress visually, and adjust in real time.
Continuous Feedback Loops – Encourage frequent, informal feedback to build a culture of ongoing improvement rather than one-time evaluations.
Automated Reminders and Notifications – Keep managers and employees on track with built-in alerts for upcoming tasks and review deadlines.
Detailed Performance Analytics – Access dashboards and reporting tools to spot trends, identify high performers, and address skill gaps.
HROne is an AI-powered performance management system, designed for organizations to manage their talent force with data-driven insights and actions. With features like defining and quantifying KPIs, easy performance review process, performance scorecard, 9-box rating, and 1-on-1 meetings for conflict resolution, you can address talent management from all aspects rather than monitoring it superficially.
With its continuous 360–degreefeedback feature, you can nurture the skills and performance of your workforce from all touchpoints. For example, you cannot only ask a manager’s feedback for an employee but also from their peers, colleagues, and overall, 8-12 people to get a broader picture of their performance and cultural fit.
Key Solutions Offered:
Review rating formula for final performance rating
Easy OKR mapping
360-degree feedback process for anonymous and overall feedback
Easy goal creation and defining of KPIs
9-box rating for identifying future leaders
1-on-1 for candid manager and person conversation
8. Betterworks
Betterworks helps enterprises scale up their performance by providing intuitive and directional insights. This performance management tool helps create a vision with the right set of goals, reviews, and continuous feedback from the employees. Managers can use features like reviews and check-ins, goal management, and continuous feedback for performance enhancement.
Solutions offered by Betterworks:
Continuous Performance Management & Check-Ins
Offers ongoing feedback loops, regular one-on-one check-ins, and light, coaching-oriented performance conversations instead of infrequent formal reviews.
OKR & Strategic Goal Setting Alignment
Facilitates company-wide objectives (OKRs) cascaded down to team and individual levels, ensuring alignment of efforts with larger business goals.
360-Degree Feedback & Peer Recognition
Incorporates multi-source feedback, real-time peer-to-peer recognition (e.g., digital badges), and fosters a supportive, transparent feedback culture.
Advanced Analytics & Reporting
Equipped with real-time dashboards, trend and historical performance tracking, customizable analytics, and manager-specific insights to guide decision-making.
9. 7Geese/Paycor
It is a human capital management tool that offers a range of services, like HR & payroll management, talent management, workforce management, and employee experience. It helps in building an engaging and collaborative culture to enhance organizational performance.
Solutions offered by 7Geese/Paycor
1:1 and feedback tools
Automated workflows to eliminate repetitive tasks
Customizable dashboard for coaching sessions
OKRs and goal management
10. ClearCompany
ClearCompany offers a platform that combines recruitment, onboarding, performance management, and workforce planning into one ambit. It offers a range of solutions that help organizations develop and nurture talent for higher performance.
Small Improvements is a lightweight performance management platform built for growing teams. Used by companies like Duolingo, SoundCloud, and Zapier, it helps foster a culture of continuous feedback, alignment, and development.
Key Features:
Customizable performance reviews & 360° feedback
Lightweight goals & objectives
Real-time feedback & praise
1:1 meeting agendas & notes
Pulse surveys & engagement insights
Integrations with tools like BambooHR, Slack, and Google
Ideal for companies with 10–1350 employees, Small Improvements offers a flexible, user-friendly toolkit to improve performance and employee experience.
Features of Top Performance Management Software
While selecting the best performance management software for the organization, it is imperative to look for some desirable features in the tool. The crux of implementing a system is to ensure performance improvisation throughout the organization and automate several manual tasks to avoid critical human errors.
Looking for the right performance management tool can be a lengthy process if the desired objectives and goals of the performance management system are not clearly defined. Conducting surveys and interviews within the firm can shed some light on the objectives.
Once the objectives are enumerated, HR managers should relate them to the below features and zero in on the tool that will meet organizational requirements. Check out the below features while selecting the best performance management platform.
Continuous Feedback Mechanism
The mechanism calls for a continuous, open, and cyclical feedback exchange between the manager and employees. It helps in finding the performance gaps of an employee and starting an improvisation plan. Through this process, managers can ensure project deliveries are not hampered and employees are getting continuous feedback on their work.
360 Degree Feedback
Also known as multi-rater feedback, it involves taking anonymous employee feedback from the colleagues he/she has a working relationship with. Managers, peers, direct reports, and subordinates all submit their feedback through a specialized mechanism.
360-degree feedback, when integrated into performance review software, provides insight into the behavior, attitude, and work relationships of employees. The unbiased nature and subjectivity of 360-degree feedback make it more acceptable to employees.
A performance management solution should be user-friendly and easy to understand. The system should help in automating tasks that require regular check-ins and error-free delivery. By sending automated reminders, it can help reduce the turnaround time and delays in submissions. Business performance management software offers customizable surveys and dashboards that aid in the easy collection and visualization of employee feedback.
People Analytics
Also referred to as talent analytics or HR analytics, it is a data-driven method to study people, processes, challenges, and opportunities in the workplace. The talent insights collected through the rigorous process aid in making smarter decisions, succession planning, and improving the capabilities of the workforce.
Social connection and engagement go a long way in today’s virtual business environment. In the last 2 years of the pandemic, employees working remotely have faced a lot of disconnect from their teams and organization, leading to proximity bias and reduced productivity.
Social performance management, or SPM, is a part of the software that provides a solution to stay connected within the organization by letting employees share ideas, opinions, and thoughts with everyone in the organization. Employees can ask for real-time feedback from their colleagues or managers.
Employee Reward and Recognition
(As per a survey conducted by Achievers, more than half of 1,700 respondents are actively looking out for new jobs, citing lack of recognition in the workplace). Employee reward and recognition is one key parameter that organizations need to look for in retaining potential employees.
A well-implemented reward system helps in boosting employee productivity and makes them feel valued in the workplace. Through gamification, performance management software encourages employees to reward each other for their contributions and outstanding performance.
Setting SMART Goals
A report published by Gallup highlights that over 50% of employees are not clear about what is expected from them at the workplace. Introduced in 1981 by George T Doran, SMART refers to Specific, Measurable, Achievable, Relevant, and Time-bound goals that help organizations in measuring employee performance through a defined metric.
Goal setting is one of the most critical and time-consuming processes in an organization. Yet, it has many advantages, such as providing clear expectations to the employees, reduced turnaround time, and higher productivity & engagement.
It helps in quantifying the performance of employees and offers insights to managers for plugging in performance gaps. A performance management solution aids in setting SMART goals that help in measuring employee performance in real-time.
Learning Management System
Learning is at the core of a performance management tool. It helps in assessing the current skills of an employee and charts out a defined path to develop and grow in the organization. Employees can use the module for self-assessment and set goals for themselves to hone their skills. Managers can assign certain learning modules to their employees to help them learn new skills.
Most of the employees are concerned about their skill development and career progression, so having a learning module in the system makes them feel cared for.
Customization, Security, and Integration
An important aspect of performance review software is its integration with other HR technologies and tools. As organizations these days use multiple tools for employee management, it is a fundamental requirement for software to seamlessly integrate with these tools for a better employee experience.
The various modules available in the system can also be customized as per the business needs and provide data security as per the business standards.
What Is Continuous Performance Management Software?
Continuous Performance Management (CPM) software is a modern approach to employee performance tracking that replaces rigid annual reviews with real-time feedback, agile goal-setting, and continuous coaching.
Unlike traditional models that rely on infrequent evaluations, CPM software enables frequent check-ins, dynamic goal adjustments, and data-driven decision-making to keep performance conversations ongoing.
Core Features of CPM Software:
Goal management & alignment – Create, track, and update individual and team goals dynamically.
Engagement tools – Recognition badges, pulse surveys, and gamification to keep teams motivated.
Benefits for Employees & Organizations:
For employees: Clear expectations, faster feedback, and better career growth opportunities.
For organizations: Higher retention, more agility, and stronger alignment between strategy and execution.
Why CPM Software Matters in 2025
Workplaces in 2025 demand agility. The shift to hybrid and remote work has made real-time performance conversations essential.
Trends driving CPM adoption:
Agile performance models – Organizations are replacing rigid cycles with flexible, on-demand reviews.
Data-driven decision making – Managers now rely on analytics for talent planning.
Real-time coaching & recognition – AI-powered tools like Workhuman’s Human Intelligence recommend timely recognition and corrective feedback.
Employee expectations for feedback – Millennials and Gen Z prefer weekly or monthly check-ins over annual reviews.
Integration with everyday tools – CPM is now built into Slack, Teams, and HRIS platforms for seamless use.
Concluding Words
Performance management software is the key to building a skilled, motivated, engaged, and performance-driven workforce. In the highly competitive and rapidly changing business environment, the success of an organization lies in how well it is managing its employees.
By shifting from traditional tools to modern tech-loaded systems, organizations can bring a real impact on their business. We hope the information shared in this article will help you in selecting the best performance evaluation software.
Did you know that managers spend an average of 210 hours a year on performance discussions with their employees? Though performance review discussion is an integral part of every organization, almost everyone dreads them.
Do they have to be that scary? Well, not if you discuss just the right things with your employees during the review!
With the evolving workplace landscape of 2025, performance discussion topics have expanded beyond traditional metrics. Today’s effective performance conversations must address remote work dynamics, AI integration, mental health considerations, and diversity initiatives to truly support employee growth and organizational success.
As managers, it is your responsibility to conduct performance discussions with your employees and provide them with a fair and accurate review.
It’s important to be prepared ahead of time, but it is equally important to bring up the right things during the performance discussions.
These discussions can result in strategic planning of workplace goals and objectives and help you set OKRs for your team easily. Moreover, asking the right things will help you locate bottlenecks in the process and may even lead to subtle things that can increase the team’s productivity.
This article will provide you with 7 things to bring up during performance reviews to get the most out of the discussions.
What’s the Purpose of Performance Review Discussions?
The purpose of a performance review discussion is to understand the performance of an employee in the core business areas. The responsibilities and actions performed by an employee in accomplishing the tasks and any other initiatives taken by them to drive the team and the organization towards their objectives.
It is important to understand the things to discuss during the performance review to make it streamlined and employee-centered. The below points will help you in making your next review meeting more strategized and focused on the employee’s improvement.
It is important to understand the subtleties of performance reviews to make it streamlined and employee-centered. Here is the list of 7 things you must cover in every performance discussion to let your employees have a fair and accurate understanding of their performance.
1. Acknowledge Accomplishments
Always remember to acknowledge the good work that your employees do or find something good about your direct reports to talk about in a performance review meeting. They need to understand that you are monitoring both the positive and negative aspects of theirperformance. Moreover, this helps you make them feel comfortable with the conversation.
Example:
“Priya, I want to start by acknowledging the excellent work you did on the last project. Your attention to detail and ability to meet tight deadlines were commendable. The client even mentioned how pleased they were with the final delivery. Keep up the great work, and let’s build on that momentum.”
Open your conversation by calling out two recent wins—whether it’s exceeding a sprint goal or mastering a software feature. Research finds that beginning with genuine recognition can raise engagement by over 20%, setting an upbeat tone for everything that follows.
2. Talk About The Gaps In Knowledge
A leader always lets people know about their shortcomings and shows them a way to improve themselves. It is very important for you as a manager to recognize and talk about your employees’ gaps in knowledge. This helps them understand what is expected of them and evaluate themselves better.
Example:
“Ravi, I noticed that while your project management skills are strong, there seems to be a gap when it comes to financial forecasting. It’s an important skill for the upcoming projects, so I recommend taking a short course or collaborating with the finance team to bridge this gap. This will help you manage budgets more effectively.”
There are many things other than just the knowledge gap that result in a lack of performance. As a manager, you should let your team members know what could be changed about their current performance and where they need improvement.
A performance review meeting should be a place where you both communicate and plan where you could improve as individuals and as a team to improve your performance.
Example:
“Shweta, while you’ve been delivering quality work, I’ve observed that meeting deadlines has been a consistent challenge in the past quarter. We need to work on improving time management so that tasks are completed on schedule. Let’s discuss strategies you can use to prioritize tasks and allocate time more effectively.”
4. Ask For Suggestions
Sometimes, it is important to listen to your employees. They could have really valuable suggestions to give about how the team could function and contribute to organizational success. Also, asking for suggestions from your employees gives them a chance to participate and contribute to the organization actively.
Example:
“Ajay, I’d love to hear your thoughts on how we can improve the team’s workflow. You’re on the frontlines every day, and your insights could help us streamline processes or even adjust some of the current strategies we’re using. What’s something you think could be changed to make things more efficient?”
Lean into questions that start with ‘How did you feel when…?’ or ‘What was your biggest takeaway from…?’ Then repeat back key phrases you heard. This simple mirroring builds trust and often reveals hidden blockers before they derail progress.
5. Discuss Employee’s Long-term and Short-term Goals
As a manager, you should know the answer to these two questions about your employee.
According to HRM Canada, 85% of workers feel they could be more efficient at work, but because of skill underutilization, do not live up to their full potential!
Asking about their short-term goals makes you understand what they have planned for the current role in your organization helps you both stay on the same page concerning their goals and helps you utilize their skills and potential to the fullest.
Asking them about their long-term goals will help you understand what they expect from their current job and how they would be able to adjust to the changing trends in your industry.
Example:
“Soha, I’m curious to know what your short-term goals are in your current role. Where do you see yourself excelling in the next six months? And looking further ahead, do you have long-term aspirations within the company? Let’s figure out a plan to ensure you’re on track to reach those milestones.”
6. Clarity Of Role
Research from the University of Cambridge tells us that employees find more success in their roles when they’re given clear expectations. Utilize your performance review meeting to clarify the role of your employees in the organization and set specific goals for them.
Example:
“Vikas, I want to ensure that you’re clear on your responsibilities and what is expected of you in your role as a team leader. Your main focus should be managing client relationships while ensuring the team stays on track with deliverables. Is there any part of your role where you feel you need more clarity or support?”
Once you clarify your employee’s role in the organization, it is important to make a performance improvement plan for them. This doesn’t imply that their past performance wasn’t good enough, you can always aim to improve your future performance. So use this performance review meeting to come up with a proper performance plan and set OKRs for your employees!
Example:
“Let’s work together on a performance improvement plan to help you succeed in the next quarter. We can set OKRs that are realistic and aligned with both your goals and the company’s. For example, let’s aim to improve client satisfaction scores by 10% and ensure all reports are delivered on time. We’ll review progress in our monthly check-ins.”
8. Address Work-Life Balance and Well-being
In today’s post-pandemic workplace, employee well-being has become a critical factor in performance and retention. A performance discussion should include conversations about work-life balance, stress management, and overall employee wellness. This shows you care about your employees as whole people, not just their work output.
Research shows that employees with better work-life balance are 21% more productive and have 40% lower turnover rates. As a manager, addressing well-being during performance discussions helps prevent burnout and identifies support needs early.
Key areas to cover:
Current stress levels and workload management
Flexible work arrangements and their effectiveness
Example: “Sarah, I want to check in on how you’re managing your workload and overall well-being. I’ve noticed you’ve been working late hours recently. How are you feeling about your current work-life balance? Are there any adjustments we can make to your schedule or workload to help you maintain peak performance while taking care of yourself?”
Follow-up questions to ask:
“What support do you need to better manage your workload?”
“How effective are our current flexible work policies for you?”
“Are there any stressors at work that we should address?”
“What wellness initiatives would be most helpful for you?”
9. Discuss Learning and Development Opportunities
Continuous learning is essential in today’s rapidly evolving workplace. A performance discussion should explore current skill gaps, learning preferences, and development opportunities that align with both employee interests and organizational needs. This conversation demonstrates your investment in their professional growth.
According to LinkedIn’s 2024 Workplace Learning Report, 76% of employees want more learning opportunities, and companies with comprehensive learning programs have 53% lower attrition rates.
Example: “Raj, let’s talk about your professional development. I’ve seen your strong performance in data analysis, and I think there are opportunities to expand your skills in machine learning. What areas of professional development interest you most? Are there specific courses, certifications, or learning experiences you’d like to pursue in the next quarter?”
Follow-up questions to ask:
“What new skills do you want to develop this year?”
“How do you prefer to learn – through formal training, mentoring, or hands-on projects?”
“Are there any industry trends or technologies you’d like to explore?”
“What learning budget or time allocation would help you grow professionally?”
10. Plan Next Steps and Follow-up Actions
Every effective performance discussion must end with clear, actionable next steps and a concrete follow-up plan. This ensures accountability and demonstrates that the conversation was meaningful rather than just a formality. Without this section, even the best performance discussions lose their impact.
Studies show that employees are 3x more likely to improve performance when there are specific action items and regular check-ins scheduled after performance discussions.
Key areas to cover:
Specific action items with deadlines
Resources or support to be provided
Timeline for follow-up meetings
Success metrics and milestones
Documentation and tracking methods
Example: “Amit, let’s summarize our discussion and create a clear action plan. Based on our conversation, you’ll work on improving presentation skills by attending the communication workshop next month and presenting to the team by quarter-end. I’ll arrange mentoring sessions with our senior manager, and we’ll check progress in our monthly one-on-ones. Does this timeline work for you?”
Action planning template:
Immediate actions (next 30 days): Specific tasks with deadlines
Short-term goals (next quarter): Skills development and project outcomes
Long-term objectives (next 6-12 months): Career progression and major improvements
Support needed: Resources, training, or assistance required
Check-in schedule: Frequency and format of follow-up discussions
Follow-up questions to ask:
“What support do you need to accomplish these action items?”
“Are these timelines realistic given your current workload?”
“How would you like to track progress on these goals?”
“When should we schedule our next formal performance discussion?”
How Engagedly’s Performance Review Module Fosters Meaningful Dialogue and Growth
Performance reviews often fall short of their potential, bogged down by formality and one-sided feedback. This can lead to missed opportunities for development and hinder organizational progress. Engagedly’s performance review module aims to bridge this gap, facilitating effective dialogue, data-driven insights, and actionable outcomes to empower both individuals and organizations.
Structured Dialogue for Focused Conversations:
Pre-defined and Customizable Questions: Engagedly provides role-specific question sets to guide discussions, ensuring key areas are addressed. Managers can further personalize these questions to tailor the review to individual needs and objectives.
Real-time Feedback Exchange: The platform encourages a two-way dialogue, allowing employees to contribute their perspectives alongside manager feedback. This fosters open communication and builds trust.
Data-Driven Insights for Informed Decisions:
Performance Data Integration: Engagedly seamlessly integrates data from various sources, including goals, feedback, and recognition metrics. This paints a comprehensive picture of individual performance and contribution.
Visualized Data: Data is presented in clear and concise dashboards, making it easy for both managers and employees to understand strengths, weaknesses, and areas for improvement.
Goal Alignment Review: The review process facilitates assessing progress towards individual and team goals, ensuring alignment and identifying potential roadblocks or adjustments needed.
Actionable Outcomes for Continuous Improvement:
Personalized Development Plans: Based on the review discussion and data insights, Engagedly helps create personalized development plans. These plans outline concrete steps for improvement, skill development, and career advancement.
Continuous Feedback and Growth: The platform encourages ongoing performance conversations throughout the year, fostering a culture of growth and continuous improvement.
SMART Goal Setting for Future Success: The review informs the setting of SMART goals for the next period, ensuring alignment with individual and organizational objectives and driving future success.
Engagedly’s performance review module extends beyond the annual formality, offering:
Transparency and Trust: The platform encourages open communication and trust-building between managers and employees, leading to a more engaged and productive workforce.
Organizational Growth: By aligning individual development with organizational goals, Engagedly empowers the entire organization to reach its full potential.
Engagedly’s performance review module is not just a checklist; it’s a catalyst for meaningful dialogue, actionable insights, and continuous improvement. Transforming performance reviews into productive conversations that drive growth, unlocks the potential of both individuals and organizations, paving the way for a thriving future.
Conclusion
A performance discussion is an integral part of an organization. It helps in finding potential employees and providing them with the right opportunities and skills to excel in their careers. Additionally, managers can also provide constructive feedback to employees whose performance is not on par with the standards.
By inculcating the review meeting points discussed in this article, you can make the process clear, actionable, and employee-centered. You can use these performance review topics during your annual, quarterly, or biannual performance review discussion.
Coaching and mentoring are powerful learning tools in the workplace, contributing to the empowerment of employees. The mentees, in particular, reap significant benefits, experiencing enhanced confidence and interpersonal skills. This dynamic relationship substantially improves individual performance. Implementing coaching and mentoring establishes a hands-on training program for new employees, aiding them in comprehending job expectations. Rather than thrusting a new employee directly into a position, providing a support system and an interactive learning environment through professional coaching and mentoring fosters on-the-job confidence.
What is Coaching and Mentoring in the Workplace?
Coaching and mentoring play pivotal roles in the workplace, enabling employees to achieve remarkable levels of professional development and personal growth. Coaching provides personalized guidance for skill enhancement and goal achievement, while mentoring cultivates enduring relationships offering valuable career advice and support.
Adopting these practices nurtures increased employee engagement, job satisfaction, and overall organizational success. A culture that embraces coaching and mentoring fosters a dynamic learning environment, encouraging knowledge sharing and attracting top talent. This contributes to a thriving workplace where employees are motivated to excel, unlocking their full potential.
Benefits of Coaching and Mentoring
Coaching and mentoring an employee makes them more valuable to the organization. It helps to develop and enhance their skills professionally and personally and provides a guided path towards the targeted goals. It directly benefits the employees to discover and embrace the truth about themselves and helps to explore by setting order and improving competencies.
Salesforce Ohana Culture Coaching (2024) Salesforce expanded their mentoring program to include AI skills coaching, with senior developers mentoring junior staff on Salesforce AI integration, resulting in 40% faster project completion.
Google’s DEI Mentoring Network (2024) Google’s updated mentoring program focuses on underrepresented groups in tech, with specific tracks for women in leadership and LGBTQ+ career advancement.
Mastercard
Mastercard considered mentoring as a means to break down silos and help employees connect with co-workers across the business who have similar ambitions and interests. This leading global payments technology company leveraged its talent marketplace to generate mentor pairings based on capabilities and ambitions, instead of making matches based solely on seniority. Mastercard’s mentoring program has proven to be particularly beneficial for welcoming new talents into their organization.
Schneider Electric
Surveys revealed that nearly 50% of exiting employees cited subpar growth opportunities as their primary reason for leaving the business. Therefore, Schneider Electric decided to take action and launch a talent marketplace to transform internal mobility and empower its employees to take charge of their professional development. Mentoring is a core component of internal mobility at Schneider Electric.
Novartis
With a headcount that surpasses 100,000, breaking down silos is a priority for Novartis. In the past, associates struggled to gain visibility into opportunities outside of their region and function. This led to the launch of a mentoring program with an emphasis on cross-functional and cross-country pairings. The company used its talent marketplace to generate mentee-mentor pairs based on relevant expertise.
Cooley
Cooley is a global law firm with over 1,500 lawyers. The intricacies of their legal work demand that new attorneys be ready for action quickly. Their Cooley Academy Mentoring Program (CAMP) was designed to onboard new employees and get them ready to fasten connections with more experienced individuals. This provided them with a good support system that helped them become competent in their new roles faster.
McGraw-Hill
The education publication giant, based in New York City, has offices in 38 countries, which provides interesting opportunities for mentorships. The company undertook a comprehensive planning and strategy approach to its mentoring program development. A case study on the process shows that most employees are well-served by the program. 97% of participants said that they would recommend the program.
Real-Life Success: Coaching and Mentoring in Action
Why diversity coaching is important?
In 2018, Starbucks found itself in the middle of a public relations crisis when an employee called the police on two black men who were waiting for a friend in a Philadelphia cafe without ordering anything. The men were arrested, despite doing nothing wrong, and the incident went viral. Many activists used the incident to highlight bias against Black people and protesters began to hold demonstrations inside stores. In response, Starbucks decided to close all of its 8,000 U.S. stores for a day to hold racial bias training. Experts in diversity and inclusion pointed out that research shows that this type of one-day training often fails to produce even short-term results. Starbucks leadership acknowledged that the issue could not be solved within one day, and promised to create a program that was central to the company’s core mission and in line with its values.
Productivity Mentoring
Deloitte created its D-180 digital mentoring program in response to COVID-19. It targets university graduates, high school students, and college students. The aim is to provide participants with the skills and support they need to find meaningful work within the evolving new economy. Deloitte provides this service to youth in the Middle East and Cyprus. They advocate for an education that goes above and beyond academia. Deloitte pairs with mentors through internet mediums with young mentees and oversees their relationships. The aim is to encourage future employment opportunities
Mentoring and Coaching Tools and Technologies for 2025
Therefore, mentoring and coaching are related to the dissemination of knowledge and the development of skills provided at various levels. The processes, when effectively done, are likely to bring positive change in individuals and hence, increase the productivity of organizations.
Frequently Asked Questions About Workplace Mentoring and Coaching
What’s the difference between mentoring and coaching in the workplace?
Mentoring focuses on long-term career development and relationship building, while coaching targets specific skills and short-term performance improvements.
How long should a workplace mentoring relationship last?
Most effective programs run 6-12 months, with monthly check-ins and quarterly goal reviews.
What makes a successful mentor in the workplace?
Active listening skills, industry experience, commitment to others’ growth, and clear communication abilities.
How do you measure mentoring program success?
Track retention rates, promotion rates, employee engagement scores, and participant satisfaction through regular surveys and performance reviews.
Can remote employees participate in mentoring programs?
Yes, virtual mentoring programs can be equally effective with proper technology, structured communication, and regular video interactions.
In 2025’s evolving workplace landscape, team building activities have become more crucial than ever. With 42% of companies operating in hybrid models and employee engagement at an all-time low, strategic team building isn’t just nice-to-have—it’s essential for business survival. Whether you’re managing a small startup team, leading a large corporation, or coordinating remote workers across time zones, the right team building activities can transform your workplace culture and boost productivity by up to 12.5%. One of the crucial factors that contribute to a business’s success is how efficiently and effectively its employees work together.
A recent Gallup report shows that companies that concentrate on team-building activities have a 12.5% higher productivity rate. The report also states that team managers are important in facilitating this and should focus on the strengths and weaknesses of every individual in a group.
Another survey among US employees supports this: of the surveyed employees, 25% feel ignored and 40% are disengaged. But after managers started focusing on individual employees’ strengths, active disengagement fell to almost 1%.
In this article, we will look at some creative team-building activities managers can undertake to improve team engagement and performance.
What Do You Understand By Team Building?
Team building involves building strong bonds between members, embracing differences, and sharing opinions to achieve a common goal. Team building can happen through daily interaction when employees work together for a common need. It can also be done by organizing specific team-building activities for employees.
Unfortunately, the COVID-19 pandemic has resulted in a great shift in what team-building entails. Most employees are engaged in working in hybrid or remote environments. So, when companies are planning a team-building strategy, they have to think of a combination of virtual and in-person activities.
Why is Employee Team-building Important?
The main purpose of employee team-building activities is to increase communication, motivate employees, and focus on employee collaboration and planning skills through fun activities.
But which activities are effective in engaging employees and boosting performance management?
Whether you are the HR manager or owner of a startup, the selected activities in an event will influence its success. Consider the desired outcome to decide on the type of activities. Some reasons to include team-building activities with your employees include:
Whether you want to up productivity, increase communication amongst team members or just provide your employees with a great opportunity to bond, these activities are fantastic for corporate team-building.
Team-building Activities for Small Groups
Small teams work closely, focusing on each other with effective communication. The activities designed to strengthen the interpersonal relationship and communication skills in small groups are as follows:
Human Knot
Human knot is an excellent game that encourages employees to work as a team to solve problems. It requires cooperation and leadership to solve a puzzle. It focuses on problem-solving and takes 5 to 10 minutes to complete.
In this, players have to stand in a circle, facing inwards. Players must join their right hand with the person opposite them and do the same with their left hand. The main goal is to unravel the knot without releasing each other’s hands. The game should end with the players standing in a circle with their hands joined. It requires players to twist, turn, and pass through each other hands, maintaining communication simultaneously.
Blind Retriever
If you are to improve communication among small groups, plan for this game. It’s a fun game that boosts listening skills and hardly takes 5 to 10 minutes.
In this game, form teams, and one person in each team is blindfolded. Directed by a teammate, the blindfolded person has to retrieve the object before the other team does.
Team Lunch
This is a passive team-building activity that succeeds in building interpersonal relationships. It also boosts team morale and strengthens relationships. The team goes out to a restaurant or the company gets lunch catered at the office for team lunch.
Two Truths and a Lie
A classic icebreaker where each team member shares three statements about themselves—two true, one false. Others guess the lie. Perfect for building personal connections and improving communication in small teams.
The Marshmallow Challenge
Teams receive spaghetti, tape, string, and a marshmallow. Goal: build the tallest freestanding structure with the marshmallow on top. Develops creative problem-solving and iterative thinking.
Speed Networking
Pair team members for 3-minute conversations before rotating partners. Include conversation starters like “What’s your hidden talent?” or “Describe your ideal weekend.” Builds interpersonal relationships quickly.
Story Building
One person starts a story with a sentence, the next person adds a sentence, and so on around the circle. Creates collaboration, active listening, and often generates lots of laughter.
Desert Island Scenario
Teams discuss what 5 items they’d bring to a desert island and must reach consensus. Encourages communication, compromise, and understanding different perspectives.
Memory Wall
Team members write favorite work memories on sticky notes and create a collaborative memory wall. Builds positive team culture and reminds everyone of shared successes.
Would You Rather
Present thought-provoking “Would you rather” questions related to work preferences, travel, or life choices. Helps team members learn about each other’s values and decision-making processes.
Team Building Activities for Large Groups
Scavenger Hunt
It is a fantastic activity that brings a team together. It allows employees to learn more about the company and the organization they work for. Considering this option can be daunting for an organizer but don’t be deterred from it. Plan something out-of-the-box that encourages critical thinking, problem-solving, and teamwork.
It will take 1 to 2 hours, and the game’s setup requires large office space.
The game is about finding hidden objects. Once the team gets the item, they will have a clue for the next phase in the game. The team that completes the challenge first wins.
Here, small teams should play to start the clue, and they have to be creative to solve the riddle.
Community Service
Other than games and activities, a team-building exercise can also do some real good, like volunteering staff for community service. It boosts company culture and pride.
Murder Mystery
Murder Mystery is a fun team-building activity that alerts employees in an office of a sudden crime. This creative game is a great way to develop relationships with the team.
If you don’t know how to plan for the game, you can seek assistance from event companies to arrange it for your team. It is about building relationships via problem-solving among teammates and takes 2 to 3 hours.
Start by picking a theme for the party. Try to plan for the murder story, retaining the suspense and excitement factor like James Bond, Sherlock Holmes, and Scooby-doo. Costumes and props can bring a real feel to the game when employees play specific roles.
Community Service
Other than games and activities, a team-building exercise can also do some real good, like volunteering staff for community service. It boosts company culture and pride.
Amazing Race Office Edition
Create multiple challenge stations around the office or venue. Teams race to complete tasks like trivia questions, physical challenges, or creative problems. Promotes friendly competition and collaboration.
Human Bingo
Create bingo cards with traits like “Has traveled to 3+ continents” or “Speaks two languages.” Team members mingle to find colleagues matching each square. Excellent for large group networking.
Charity Build Challenge
Teams work together to assemble care packages, build furniture for charity, or create items for local nonprofits. Combines team building with community service for meaningful impact.
Office Olympics
Set up multiple game stations with activities like paper airplane contests, desk chair races, or typing competitions. Rotate teams through stations for maximum engagement.
Innovation Tournament
Present real business challenges and have teams brainstorm solutions. Include pitch presentations and voting for best ideas. Combines problem-solving with strategic thinking.
Time Capsule Creation
Large teams collaborate to create a company time capsule with predictions, current team photos, and messages to future employees. Builds long-term thinking and shared identity.
Team-building Activities for Remote Groups
Remote groups are common in this new hybrid model of work. Some interesting activities to boost performance management are as follows:
Sharing a Goal
Formal policies aren’t enough to build a trustworthy team. A strong team builds on the foundation of support and trust. So, encourage colleagues to share non-work goals with one another, to strengthen and deepen bonds. Staff can then ask one another about the progress of their goals and keep motivating one another.
Introvert people are less likely to open up about their dreams. However, friends and colleagues close to them can encourage them to speak their hearts out. This is how a whole team can be each other’s support to speak up their minds.
Working in remote mode can get lonely, and a little non-work conversation or good news is significant to brighten your day. So, create a ‘good news’ conversation channel and invite team members to share recently happened news that has made them happy. It can be any little thing in life that makes you smile or boosts your mood.
Whatever the news be, sharing can be a great conversation starter and bring teams closer, allowing each to celebrate success even when working remotely.
Send Daily Snapshots
Sharing daily snapshots is a simple way to bring teams closer. Encourage team members to post something daily, whether it’s the lunch photo, the dress they are wearing, or anything new in life, and make collages of these shared moments.
As teams start to comment on the snapshots, it starts a conversation. It is how non-work and simple daily chat can strengthen the team bond through better insight into their lives. However, not everyone in a team has to share pictures every day. It is about team engagement and generates talking points among the members. You might get excited about what the other member is going to post as it becomes a routine activity.
Virtual Escape Rooms
Use online platforms like Breakout or The Escape Game for digital escape room experiences. Teams solve puzzles together via video call, promoting problem-solving and communication.
Online Cooking Class
Send ingredient kits to team members’ homes and cook the same recipe together via video call. Creates shared experience and casual conversation opportunities.
Digital Scavenger Hunt
Create lists of items team members must find in their homes within time limits. Include categories like “something blue,” “childhood photo,” or “favorite book.”
Virtual Book Club
Select business or personal development books for monthly discussions. Rotate discussion leadership to give everyone presentation practice and engagement opportunities.
Online Game Tournaments
Organize tournaments using platforms like Kahoot, Jackbox Games, or online board games. Create leaderboards and prizes to maintain engagement over time.
Show and Tell Sessions
Organize tournaments using platforms like Kahoot, Jackbox Games, or online board games. Create leaderboards and prizes to maintain engagement over time.
Virtual Coffee Chats
Pair different team members weekly for 15-minute informal video calls. Provide conversation starters and rotate pairings to ensure everyone connects.
Activities to Boost Your Team’s Creativity
Escape Rooms
Escape rooms are a popular team-building activity that can be played in office space. Though employees cannot get a professional escape event setup, an exciting storyline can be fascinating for players, followed by challenges and puzzles. This 1 to 2 hrs of the game boosts critical thinking, communication, teamwork, and problem-solving ability.
The game starts with a storyline that is engaging and guides players through many challenges. It is easy to start with the final objective to develop the challenges and puzzles for the game. The players should start to game as a mission together.
Try to inspire players to complete the challenge faster by luring them with extra credits to complete a challenge. A creative and fun escape game is fruitful for everyone taking part in it.
Shout Outs
Shout Outs are simple games to encourage employees to acknowledge others’ achievements. The game is interesting to incorporate into the working schedule, without hampering work productivity. It boosts the appreciation of coworkers in public.
In this, one person will call out their recent achievement along with one of their colleague’s achievements. It is an effective means to boost appreciation and positivity in the office.
The Perfect Square
Make your group sit in a circle. Each member then put on a blindfold. Next, take a long rope and tie its end together. Every person should have the rope in their hands. Now leave the circle, and instruct members to form a square using the rope and without removing the blindfold. If the team assumes they have formed the square, ask them to remove the blindfold and see what they accomplished.
The creative game boosts leadership styles and communication. Once you start the game, there will be team members who want to give directions and who want to take charge. However, the team has to work together to create the ultimate square. It requires each of them to communicate when being blindfolded.
Classify This
Collect a variety of objects and put them on a center table. With a broader array, the game can become thought-provoking. Pick jewelry, dinnerware, office supplies, game pieces, toys, and others. Try to include at least 20 different items. Collect the items first.
Break the teams playing into groups; each group should have a pen and paper. The team members should get a clear view of every item picked for the game. Then, ask them to classify the items into four groups and list them on the sheet. They should list it on their own, without letting other groups know. Then, the spokesperson from each group should reveal how they classify the objects and the reasons behind them. It can depend on the materials it is made of or the functions it performs.
The exercise encourages creative thinking and teamwork, where the team also rethinks how they classify everyday objects and looks for commonalities in otherwise unconnected objects. It leads to a discussion on how to think of out-of-the-box solutions and fix problems.
Final Thoughts
Start planning for the above-listed activities that boost team building, promotes creative thinking, instill team trust, and encourage communication. Building an efficient team is an essential part of an organization, whether in hybrid or virtual mode. In addition, a better chance to know each other in a team professionally and personally, and communicate outside office work is a great way to encourage engagement among team members. Knowing little details about each other can make team members feel they are in the same space. Now, go ahead, plan, and bond.
As soon as an employee joins an organization, the HR managers start with the onboarding process to equip the employee with the job role, necessary tools, security measures, process and product training, and mission, vision, and goal of the organization. These practices usually last for 2-3 days, and the employee is inducted into a team.
Usually, HR then meets with the employee during the review process after a year or during an exigency. During this period, an employee might develop concerns and issues that should be addressed to avoid any conflict.
With years of experience and research, hiring managers have started to understand the importance of holistic employee development and how it can impact the achievement of organizational goals. The pandemic-led challenges have instigated an array of changes for organizations to balance out with their current process and develop talent that can bring better results.
The great resignation has completely overthrown the traditional practices of employee nurturing. The emphasis now is on retaining the newly inducted employees through practices like learning and development, skill enhancement, employee engagement, and conducting frequent reviews.
As per a report by Glassdoor, it takes around eight months for a new employee to get fully onboarded. Much research has shown the importance of nurturing and creating a good employee experience for the first 90 days of an employee’s journey. The best way to achieve this is by conducting frequent employee reviews that are focused on the employee’s overall experience in the organization.
The practice of conducting employee reviews is not new to organizations, but the latest development encompasses 30-60-90-day reviews. It involves checking in on employees to understand their concerns and provide them with enough support to get accustomed to the organizational culture and values. Because of the recent shift to hybrid work models and rapidly changing business practices, it has become more important that organizations create a strategy to conduct frequent reviews.
Conducting 30-60-90 day reviews helps employees in understanding the culture, business practices, team structures, short-term and long-term organizational goals, and expectations from them as per their job roles. During the initial period of employment, employee productivity usually lingers around 25%. At this stage, a human resource manager should work on getting an employee acquainted with the process and tools, rather than emphasizing increasing their productivity.
For employers, it gives them the opportunity to identify any gaps in employee onboarding and development and provides a platform to share their expectations with employees. They can also initiate corrective actions to address employee concerns and delegate resources for employee development. Managers can also discuss the performance of employees on various parameters and offer them constructive feedback to enhance their performance.
2025 Trends Transforming 30-60-90 Day Performance Reviews
The landscape of performance reviews has evolved significantly. Here are the key trends shaping 30-60-90 day performance reviews in 2025:
AI-Powered Performance Analytics:
– Companies using AI for onboarding report 50% improvement in new hire time-to-productivity – Automated goal-setting and progress tracking reduce administrative burden – Predictive analytics help identify retention risks early
Remote-First Review Strategies:
– 63% of remote employees report inadequate training during onboarding – Video-based check-ins increase information retention by 67% – Digital collaboration tools enable more frequent touchpoints
Personalized Development Pathways:
– Micro-learning modules tailored to individual progress – Skill-gap analysis integrated into review processes – Career pathing aligned with company growth trajectories
What are 30-60-90 Day Reviews?
30-60-90 day reviews are an employee engagement and development strategy opted by various organizations for newly inducted employees. The process involves checking in with employees frequently and developing a standard practice to conduct reviews during the first 30, 60, and 90 days of an employee’s tenure in the organization.
During the reviews, managers can share their feedback with the employees and reflect upon their performance during the review period, using performance review examples to provide structured assessments. This helps in laying down a path for performance tracking and aligning employee goals with organizational objectives. Moreover, it also gives new hires an opportunity to discuss their career objectives and ambitions with their managers. Hence, these strategic reviews help in the learning and development initiatives of employees and carve out a career path based on their skill sets and organizational requirements.
30-60-90 day reviews help in laying out a standard procedure for employees to measure their performance against the set benchmark. This helps leaders and managers recognize the best talent and reward them for their excellence. It also leads to the development of action plans for employees with low performance and engagement. Moreover, during the annual appraisal process, managers can refer to the documented reviews and measure improvements and employee performance against the goals set up during the review period.
The added advantage of conducting 30-60-90 reviews is the measurement of the engagement level of the newly hired employees in the organization. Employee engagement is one of the most important aspects of retaining and nurturing talent. Through an effective and strategic review process, organizations can create an action plan for increasing employee engagement and productivity. Furthermore, it aids in reducing the turnover of the newly recruited employees.
Statistics on 30-60-90-Day Reviews
Let us look at some statistics regarding employee onboarding practices, employee reviews, and engagement.
Just over 12% of employees believe that their employers did a great job while onboarding new employees (Source: Gallup2)
69% of employees are more likely to stay in the organization for three years if they have had a great onboarding experience. (Source3 SHRM)
58% of new employees with structured onboarding experience are likely to stay after three years in the organization.
Nearly one-third of all new hires quit their jobs within the first six months (Source: SHRM4)
As per a study conducted by the Center for American Progress, the cost of losing a highly trained employee is 213% of their salary (Source5: AmericanProgress)
A report shows that only 29% of employees know whether their performance is up to the mark and just 50% of employees know if they are doing well in their job roles. (Source6: Leadership)
Only 14% of employees feel that their performance reviews inspire them to improvise on their work. (Source8: Gallup)
A study found that 44% of employees feel more engaged when their managers hold regular review meetings with them. (Source9: Gallup)
The above statistics are a good indicator of the importance of having a good employee experience for new as well as existing employees. It is therefore important to have frequent reviews to overcome any challenges faced by employees. Let us now discuss the importance of 30-60-90-day reviews in the initial phase of an employee’s journey.
Importance of 30-60-90 Day Reviews
The pandemic has caused a massive shift from traditional work setups to working from home or hybrid work environments. Most new employees are being onboarded virtually, and they miss the opportunity to physically interact with the team and human resource managers.
In such a scenario, it is increasingly difficult to understand the problems and concerns of the new hires. Therefore, to overcome this barrier, it is imperative to have a review mechanism that provides a platform for employees to have a discussion with managers.
Having a structured 30-60-90 day review process helps in checking in on employees at a fixed interval and giving them feedback on their performance. Let us discuss why it is important for organizations to have a review process in place.
Opportunity to Identify Gaps in the Onboarding Process
Employee onboarding is the first impression of an employer towards its employees. A report by Glassdoor states that strong onboarding practices can increase employee retention by 82% and productivity by over 70%. Therefore, it is important to support new employees in the initial 90 days of their employment.
Organizations with better onboarding practices utilize tools and technology to equip employees to succeed in their new positions. Furthermore, emphasizing assimilation and fostering employee socialization can boost employee confidence in the organization.
Employers can identify gaps in their onboarding process by having an employee review at the end of the first 30 days of employment. It is an opportunity to understand why the employee felt disengaged and left out during the onboarding process. Additionally, managers can also initiate a formal mentoring program to help employees acquire the skills required for task accomplishment.
Moreover, it helps employees build connections with other employees in different departments. Conducting reviews also helps in understanding the mental health of employees and creating measures for overall employee well-being.
Once the gaps in the process are identified, organizations can initiate corrective actions to improve the overall employee experience. For example, employee engagement and social connection can be improved by physically or virtually introducing employees to different team members and starting a buddy system for new hires. Formal mentoring and coaching sessions can be conducted for employee development and skill enhancement.
A Benchmark for Measuring Employee Performance
In addition to having a great onboarding experience, it is important to set up a benchmark for measuring the performance of new employees. As per a research, the productivity of employees in the first 90 days of employment increases as they adapt to the company culture and understand the various aspects of performance. In order to gauge and measure employee performance, managers must initiate 30-60-90 day reviews.
Managers can set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for employees and measure performance based on goal achievement. By having various checkpoints, it becomes easier to align employees towards organizational goals and provide them with guidance for improving their performance.
In addition, employees are also aware of the performance standards they are expected to achieve in order to create a strong foundation in the organization. Having a realistic timeframe helps with the smooth transition of new employees into the organization.
Building a Foundation for Employer-Employee Relationships
Conducting reviews goes a long way toward establishing a strong foundation for the employer-employee relationship. That’s why employee bonding and relationship building are rated as one of the most important aspects of engagement, productivity, and retention.
30-60-90 day reviews not only help managers reflect upon employee performance but also create a two-way communication channel to develop a connection with new hires.
Social connectivity is quintessential for employee engagement and development, especially for new employees. Therefore, human resource managers should collaborate with leaders to develop a well-defined review plan that supports social connectivity over multiple platforms.
Fostering connections and relationships are equally important for employees working from home and from the office. Therefore, leveraging virtual tools to conduct reviews can help resolve the challenges of geographically dispersed employees.
Understanding Employee Wellbeing & Mental Health
Employee well-being and mental health have gained prominence with the adoption of a hybrid work culture. The lack of human connectivity and social connections is a predominant factor in debilitating mental health. Mental health issues become a pressing issue when employees start feeling distant and neglected by their employers.
Even for new employees, addressing personal challenges they encounter at the workplace or because of the business modus operandi is critically important.
Conducting reviews at frequent intervals can help managers keep track of employee well-being and mental health. Furthermore, fostering a supportive culture and encouraging employees to share their problems during reviews can help in identifying any underlying concerns.
While conducting reviews, managers can assure employees that their mental health is of prime importance to organizations. Such activities help in assuring employees that they are being cared for.
Benefits of 30-60-90 Day Reviews
A report11 by Gallup on “How Millennials want to work and live”, highlights that 44% of employees feel more engaged when their managers hold regular review meetings with them. In contrast, only 20% of employees who do not meet their managers frequently are engaged.
The above statistics highlight the importance of conducting frequent reviews for employee engagement. By prudently implementing a 30-60-90 day review plan, organizations can transform their employees into a dynamic and self-driven workforce.
The benefits of conducting reviews extend to all the stakeholders involved in the organization. Let us understand how the application of 30-60-90 day reviews benefits both employees and employers.
Benefits For Employees
Employees can take advantage of the 30-60-90 day reviews and leverage the knowledge grasped during the process to improvise on their performance. Check out the list of benefits for employees below.
1. Personal and Professional Development
Conducting reviews in the initial phase of an employee’s journey goes a long way in their personal and professional development. During reviews, managers can highlight the strong and weak areas of employees and suggest a learning path for them to enhance their skills and productivity. In addition, employees can also discuss plans for their career progression with the managers. It helps them in envisioning their future roles in the organization.
The reviews are of great help in identifying personal development gaps that could lead to low performance by an employee. An extensive 30-60-90 day review plan also suggests interpersonal areas of an employee to improve upon.
2. Asking for Support
Every organization tries to foster a supportive environment for its employees. But not everyone can achieve it because of the challenges put forward by culture, hierarchy, and personal inhibitions of employees. One of the ways to achieve higher organizational efficiency is to have a respectable and supportive culture that allows employees to reach out for help.
Employee reviews give an opportunity to new employees to ask for support from their managers. Based on the discussion, managers can initiate mentoring and coaching sessions, 1:1s with employees, and other activities deemed necessary for employee support.
3. Boosts Employee Morale and Motivation
A self-driven and motivated workforce is the strongest asset of an organization. Finding suitable and dynamic employees requires hard work from the human resources department. But developing them into a performance-driven and committed workforce is far more challenging.
Employees are skeptical about the organization during their first 90 days of employment. In this phase, they are unsure about the culture and business environment, and require more than just formal training to assimilate into the organization.
Conducting planned and strategic reviews helps in boosting employee confidence and motivation. Frequent check-ins and 1:1s organized by managers make employees feel supported and cared for, which ultimately sets them in the right direction.
Benefits For Employers
Employee reviews directly impact the performance of employees and, thereby, the organization’s output. A well-structured and strategically laid-out review plan can benefit the organization in the following ways:
1. Reducing Employee Turnover
As per the statistics12, over one-third of all new hires leave within the first six months of their tenure. This is irrespective of the job role and position being offered by the organization.
The great resignation has further added to the woes of human resource managers. They are now battling with the problems of finding new talent and ensuring they stay committed for a long period of time. To contain the premature exit of employees, it is crucial for organizations to consider strategic ways to convert them into long-term employees.
Using 30-60-90 day reviews helps in understanding the challenges faced by employees and finding strategic solutions to them. Managers can pick up early warning signs during the review process and can take preemptive action to contain attrition. It may include training and incentive programs for employees. A well thought out 30-60-90 day review process can reduce employee turnover at all levels of the organization.
2. Increasing Employee Engagement
Employee engagement is one of the most important traits of a performance-driven organization. Engaged employees are likely to stay for a longer period in the organization and are more oriented towards business goals. Employee engagement is an organizational strategy that helps in achieving higher levels of performance, better retention, and better quality of work.
One of the benefits of conducting 30-60-90 reviews is that it increases employee engagement. Frequent reviews help employees understand their performance gaps and provide them with learning opportunities. Furthermore, managers can better assess the skills of new hires and align them to the respective projects where they can best utilize their skill sets.
3. Metrics for Performance Measurement
Employee reviews are a great way to assess the performance of new hires. Every employee has a unique set of skills and competencies, and utilizing them effectively is the key to increasing organizational efficiency. By measuring performance at regular intervals, managers can ascertain that employees are on the right track. It also helps in comprehending any challenges that are undermining the performance of employees.
Reports and data created at the time of conducting 30-60-90 day reviews help in recognizing the efforts of employees. Additionally, it is also used to identify low performing employees and help them improve.
4. Reward and Recognition
SurveyMonkey conducted a survey13 with over 1,500 employed Americans to find out how recognition at their organization helps them. Following were the key highlights of the survey:
Around 82% of the employees felt that recognition is linked to happiness in the workplace.
Over 32% of surveyed employees felt that recognition improves the way their colleagues interact with them.
Public recognition, according to 68% of employees, increases their chances of getting a raise or promotion.
These above statistics highlight how important recognition is for employees. A reward and recognition platform supports employees in achieving their highest potential and thereby increasing organizational efficiency.
30-60-90 day reviews are a great way to identify potential employees and reward them suitably for their efforts. Effective utilization of such a review mechanism can help in building a skilled, performance-driven, and happy workforce that is ready to go the extra mile to achieve organizational goals.
5. Identify Training Needs
Learning capabilities and aptitude are different for every employee. Even after going through the initial level of training and induction, there might be scenarios where an employee needs more support.
To handle such challenges, it is important to organize reviews where employees can share their concerns regarding performance. Therefore, managers should create an open channel of communication during reviews that helps employees clearly state any obstacles in their learning process.
Performance metrics, such as quality of work, customer centricity, and productivity level collected during 30-60-90 day reviews help in identifying employees with training needs. Managers can create a training plan to improve the performance of such employees.
If multiple employees are struggling in the same learning areas, then it can be because of the wrong practices and systems being followed for the onboarding process. Such issues can be handled by identifying the loopholes in the system and initiating corrective actions.
6. Employee Development
The entire process of the performance management system revolves around employee development. Such development plans have to be built in collaboration with employees. It ensures that their skills, competencies, and expectations are taken into consideration while planning the activities.
A successful employee development plan involves conducting reviews to understand the current performance level of employees and setting SMART goals to help them achieve better results.
Managers usually inculcate employee development initiatives while creating a 30-60-90 day reviews plan. It offers a constructive and flexible way of reviewing new employees’ performance and motivating them to achieve more. 30-60-90 day reviews are a holistic approach to employee development.
7. Enhanced Remote Team Integration: Remote work has fundamentally changed how new hires experience their first 90 days:
– Virtual Buddy Systems: Pair remote employees with experienced team members for daily check-ins – Digital Culture Immersion: Use interactive platforms to showcase company values and traditions – Hybrid Meeting Protocols: Ensure remote participants are fully included in review discussions – Time Zone Considerations: Schedule reviews at optimal times for distributed teams – Technology Proficiency Assessment: Evaluate and support new hires’ comfort with remote work tools
How to Create a 30-60-90 Day Review Plan?
Creating a review plan requires collaboration from multiple departments. Human resource managers must inform the team leaders/managers regarding the onboarding of new employees and arrange sessions to discuss the review plan. The process is highly dependent on the job position and role of the employee joining the organization.
By undertaking the below discussed best practices, human resource managers can create an effective 30-60-90 day review plan.
Step 1: Setting Realistic Expectations
The time spent between sharing a job post and getting someone onboarded can be too overwhelming for the organization. At this time, managers can be tempted to get a new employee rolling and take up the responsibilities for which they were hired. Instead of pushing them to a quick start and passing on innumerable duties, it is preferable to let them gradually transition into the organizational culture. Undertaking 30-60-90 day reviews helps managers understand employee strengths and weaknesses and strategically place them in projects.
To set the course in action, managers can select two or three prime responsibilities/goals for the new hires and explain to them the process to achieve them. Setting realistic, quantifiable, and focused goals should be the foundation of conducting reviews.
Step 2: Creating Milestones to Measure Performance
The first 90 days of an employee’s journey are full of twists and turns. In this period, they are assimilating into the organizational culture and understanding the intricacies of the new business environment. Furthermore, if they are working from home, it is comparatively difficult to understand the tools and technologies.
Setting milestones while conducting the reviews helps managers measure the performance of employees. Additionally, it ensures support and collaboration in the initial days of employees.
Highlighting accomplishments and achievements of milestones is equally important in the review process. Positive feedback in the initial phase goes a long way in building employee confidence and boosting productivity. Similarly, providing constructive feedback for performance improvement is equally important.
Therefore, managers must set milestones and measure performance to provide employees with clear and open feedback for improvement.
Step 3: Collaborating With New Hires
New employees join the organization with some specific vision, expectations, and mindset. Even the business environment and culture can be new to them. In such a scenario, it is important to understand the personal goals and objectives of employees and help them align with the organizational goals.
In the first few weeks after joining, managers should talk to employees and try to comprehend their learning objectives. Based on the inputs collected from them, managers can modify the 30-60-90 day review plan. It will ensure that employees’ expectations and personal goals are also included in the plan.
It is also an opportunity to inculcate collaboration and teamwork while designing the review plan. The fresh perspective of new employees helps in bringing dynamism and strategicness to the review plan.
Step 3: Check-in Regularly
As the employees are getting accustomed to their new roles and responsibilities, it is important for managers to check in with them frequently in the initial days of their joining. It gives employees an opportunity to talk about their concerns and suggest any improvements to the current processes. Therefore, either organizing a daily catch up or weekly 1:1s will steer the employees in the right direction.
Through regular check-ins, managers can track the performance of their employees and can understand their strengths and weaknesses rather quickly. Furthermore, they can identify any persistent issues like difficulty in integrating with the team or in understanding the business dynamics and find solutions collaboratively.
Step 4: Measuring the Impact of the Plan
“You can’t improve what you don’t measure.” by Peter Drucker.
The objectives of a 30-60-90 day review plan should be quantifiable and measurable. Using SMART goals can help in making the plan more process-driven. The ultimate aim of conducting reviews in the first 90 days of an employee is to ensure their smooth transition into the business environment and help them align with the organizational objectives. Therefore, by setting measurable goals, managers have a fair understanding of employees’ strengths and weaknesses.
At the end of the review plan, it is easier to reflect upon employee performance against the set objectives. The insights collected from reviews help in creating further action plans for employees with low performance. It includes conducting formal mentoring and coaching sessions, skill development and enhancement, and buddy programs.
An Empathic, Compassionate, and Supportive Approach
Conducting reviews in the time of a pandemic is quite challenging. As the majority of employees have been working from home for months, it has become difficult to evaluate their performance. Managers face this dilemma of fairly conducting the review and also considering the impact of the COVID-19 crisis in their assessment.
Mark Mortensen, associate professor of organizational behavior at INSEAD, says that even in normal times, it is difficult for managers to conduct a performance review. Reviews are tense, stressful, and anxiety-inducing at times. Now, in the middle of the pandemic, it is much more difficult to assess an employee on performance parameters.
In such a scenario, managers must be empathic and compassionate towards their employees during the review process. They must first ask about their physical and mental health and ensure that their wellbeing is of utmost importance to the organization. Taking a compassionate approach can help employees overcome challenges and share their concerts with managers.
How to Conduct 30-60-90 Day Reviews?
Conducting frequent reviews of new employees lets them know that the organization has a vested interest in their growth and development. Moreover, it also helps in finding performance deficiencies and starting corrective actions to scale up employee development.
The learning curve of a new employee varies from three months to six months based on their job role and designation. Therefore, conducting reviews at the right time with the right assessing parameters is important to having meaningful employee reviews.
Communicating the 30-60-90 day review plan to the employees is the first step in preparing for the evaluation process. During regular 1:1s and check-ins, managers should substantiate the importance of reviews and lay out the detailed process to employees. It helps them to understand its effectiveness on their performance.
Below we have highlighted the details of the 30-60-90 day review process individually, along with the questions that managers should ask while conducting reviews. Please note that 30-60-90 day reviews are highly dependent on the designation and role of the employee upon joining the organization. Therefore, managers can alter the process and change the questions as per the requirements.
Advanced 30-60-90 Day Review Techniques for 2025
Multi-Modal Review Approaches
Traditional one-on-one conversations are evolving to include:
1. Video Reflection Assignments
New hires record brief video updates on their progress
Managers provide video feedback for more personal connection
Creates valuable documentation for future reference
2. Peer Integration Assessments
360-degree feedback from team members
Collaboration effectiveness evaluations
Team chemistry and cultural fit assessments
3. Skills-Based Micro-Reviews
Weekly 10-minute check-ins focused on specific competencies
Real-time project-based evaluations
Continuous learning pathway adjustments
Digital-First Review Formats
Virtual Reality Onboarding Reviews
Immersive environment simulations for role-specific scenarios
Safe space practice for high-stakes situations
Enhanced engagement through interactive experiences
Gamified Progress Tracking
Achievement badges for milestone completions
Leaderboards for team integration activities
Point systems for skill development progress
Conducting a 30 Day Review
As soon as the new employees are inducted into the organization, they are assigned tasks to learn the product, understand the business culture and environment, and get an overview of the business dynamics. During the first few weeks of employee onboarding, managers should communicate frequently with the employees to give them an understanding of their job roles and responsibilities.
Providing supporting material like product documentation, departmental inductions, technical guides, and historical data will help employees ramp up the processes. It is good practice to introduce employees to the team members that they will be working closely with. Make sure that things don’t get too overwhelming and that there is no information overload for employees.
Conducting frequent 1:1s in the first month is helpful in understanding the skill set of the employee. It guides the manager in defining and communicating performance expectations and employee goals for the first 30 days. The frequency of 1:1s can be adjusted once the employee is well versed in the job role.
A 30 day review is conducted at the end of the first month of the employee’s tenure. The review involves a detailed discussion between the employee and the manager. Managers must ensure that they convey information regarding the review well in advance. It helps employees to prepare their responses for the process.
Questions to Ask in a 30 Day Review
The following questions will help you get better insight into the initial 30 days of the employee.
How is your overall wellbeing and mental health?
Please rate the overall onboarding process.
How would you rate the first 30 days of your employment?
Are the job responsibilities in tandem with the expectations you had before joining?
Do you require more clarity about the job role and responsibilities?
Do you feel any challenges with the current role?
What does the best day at work look like to you?
What do you like the least about your current role?
Do you have sufficient tools to deliver on your job responsibilities?
Is the company culture congenial and growth-oriented?
Do you feel welcomed and supported by your team?
Have you achieved your 30-day goals?
What goals do you have for the next 30 days?
Do you have any feedback for your manager and the team?
Conducting a 60 Day Review
The first 30 days of the employee’s journey are usually about learning the product and business culture. In the next 30 days, also known as the development phase, the actual growth of an employee begins. Now that the employee is accustomed to the business practices and company policies, it is time to check on their performance and also collect feedback on their day-to-day activities.
A 60 day review helps in gaining insights regarding the performance and development of employees. During these 60 days, employees must have had an opportunity to interact with the clients, resolve customer/client queries, and provide resolution to internal issues. Therefore, it is important to collect employee feedback at this interval to understand the following:
The process structure and its efficiency
Overall job satisfaction of employees
Speeding up employees to their job responsibilities
Identify any challenges in the current job role
Providing them with actionable performance insights
A 60 day review is the right time to assess the contribution of employees to the achievement of short-term team goals and organizational objectives. It also gives an opportunity to discuss the long-term career vision of the employees and offer them managerial insights into their performance.
Questions to Ask in a 60 Day Review
The following questions will help in conducting a 60 day review effectively.
Did you face any challenges in adapting to the organizational culture and values?
Did the training sessions conducted in the first 30 days prepare you for the job responsibilities in the next 30 days
Is there anything that you would like to change about the onboarding process conducted so far?
Are the job responsibilities the same as per your expectations?
Have you got sufficient training sessions to perform the current job role?
Do you believe your job role is in line with the organization’s values and mission?
What would you like to learn more about in your current job role and how can the organization help in achieving that?
Is the organization’s culture and business dynamics the same as shared during the interview process? Is there anything you would like to improve in the overall process, from interviewing to onboarding?
Do you get enough support from the supervisor?
Do you enjoy working with your team?
How do you generally collaborate with team members for work?
Have you completed your 60 day goals?
What challenges did you face while working on the goals?
What goals do you expect for the next 30 days?
Do you need any additional support to complete your next 30 day goals?
Conducting a 90 Day Review
The end of 90 days usually marks the completion of the probation period for most of the employees. At this time, employees have undergone extensive training to understand the products, have a fair understanding of their job roles, and are prepared to take on responsibilities like other team members.
A 90 day review serves a major role in collecting intelligent insights about the extensive onboarding process followed by the organization. The feedback collected at this stage will help in making the processes better aligned to employee growth and development.
Managers need to perform a thorough check of the employee’s performance in the review to understand their competencies, engagement and productivity levels, collaboration with team members, and collect any feedback pertaining to their managers, team members, and organizational processes.
Questions to Ask in a 90 Day Review
The following questions resonate with the 90 day review process. Please note that questions regarding job responsibilities can be changed as per the designation and role of the employee.
Did you complete your training sessions organized to understand the product/process, organizational culture, and business dynamics?
Please share your feedback regarding the onboarding process.
What would you like to change in the current learning process of the organization?
Did you receive enough support from the colleagues? Who has been the most helpful to you so far?
Do you have any particular questions related to your job roles and responsibilities?
Do you feel comfortable asking for help from your team members?
Is your manager approachable and helpful in discussing personal and professional matters?
How would you rate the leadership of the organization? Is there any suggestion for the current leadership?
Has your manager conveyed the expectations the organization has from you?
What are your long-term goals for the organization?
How was your experience with the extended onboarding process implemented by the organization? Are there any suggestions to make it better?
30-60-90 Day Reviews Template
The downloadable template is a ready-to-use employee performance evaluation toolkit that will help in strategizing the first three months of new hires. Managers can use this template to understand their employee’s overall performance and provide actionable feedback to them.
We have also included an employee performance evaluation form in the 90 days review tab to help gauge the achievement of employee goals. To understand the development of employees on various parameters the template is segregated into different sections
Many organizations have reaped the benefits of a well-defined and structured 30-60-90 day review process. By building a standard process for extensive reviews, organizations can achieve higher productivity, engagement, and low employee turnover.
Moreover, it helps employees form a strong connection with their colleagues and organization, thereby making them more loyal and committed towards the employer.
Through features like SMART goals setting, real-time feedback, ongoing check-ins, and 30-60-90 reviews, organizations can keep track of employee activities and offer innovative solutions to help engage, enable, and empower their workforce.
Have you ever wondered why your projects are always behind schedule or why your employees are losing interest in their work? A simple answer to this might be that employees at your workplace don’t have clear goals to direct them. Many organizations fail to understand the importance of goal setting, and as a result, they fail miserably. A 2024 Harvard Business Review study shows that employees who write down goals are 42% more likely to achieve them.
TL;DR Summary
Clear goals provide direction, focus, and motivation, helping employees stay aligned with organizational objectives.
Key Benefits of Goal Setting
Boosts employee motivation and accountability
Helps in prioritizing work and improving time management
Enhances decision-making and team collaboration
Allows teams to measure success using SMART goals
Acts as a roadmap for career growth
Types of Goals
Goals can be individual, team, or organizational—ideally linked to OKRs.
How Engagedly Helps
SMART goal formulation
Collaborative and transparent goal setting
Real-time tracking and visibility
Integration with performance management and actionable insights
Role of Managers
Managers guide, support, and provide feedback to help employees succeed.
Why are Goals important?
Goals are super important because they give you direction and purpose. Think of them like a map. Without a map, you’d just wander around, unsure of where you’re going, right? Goals work the same way—they help you focus on what you want to achieve and keep you motivated to get there.
Plus, they give you something to measure your progress against, so you can see how far you’ve come and what you still need to work on.
Setting goals also helps you prioritize what’s important. In a busy world, it’s easy to get distracted by all the little things, but goals keep you on track toward what really matters.
And whether it’s personal or professional, having a clear goal gives you that sense of accomplishment when you hit it, which just feels amazing!
So, in a nutshell, goals are your guideposts—they keep you focused, motivated, and give you a reason to celebrate when you achieve them.
Importance of Goal Setting
Goal setting provides a sense of direction and focus, which helps in altering the behaviors and attitudes required to accomplish the objectives. It gives you momentum and a thrust that pushes you in the direction of self-mastery to improve every day and be resilient in challenging times.
Goal-setting benefits not only the employee but the organization as a whole. Considering the importance of goal setting, a good amount of time should be devoted to it. In this article, we will discuss why goal-setting is important for your employees.
Also to learn more about how to establish clear and achievable employee goals, check out this detailed guide
1. Motivates Employees
Goal setting keeps employees motivated by fostering a culture of accountability and progress tracking. It enables employees to stay focused and aligned with the company’s strategic objectives, resulting in improved overall organizational performance.
Goal setting serves as a powerful tool to not only communicate expectations but also to illustrate the broader impact of your team’s efforts. This fosters higher engagement, motivation, and productivity, ultimately fueling significant company growth.
Having a clear goal in mind helps in focusing on priorities. Once the goals are decided, they can be taken up for completion in order of their priorities. This allows tasks to be completed on time and in a logical order. The ability to prioritize goals shows an employee’s ability to plan and focus ahead. This makes them better prepared and clear on what work needs to be completed and by when.
3. Decision Making
Goals help in enhancing the decision-making skills of the employee. They serve as a guide in the decision-making process. Before taking any decision, an employee will evaluate it against the goal that they are trying to achieve. Every decision is taken based on the outcome of the decision.
Similarly, this applies at an organizational level, where every decision is taken thinking about how it will affect the business. Goals are useful for employees when they come across challenging projects as they helps in making wise decisions.
When individual goals are linked to organizational goals, it promotes teamwork. The leaders and managers must let every employee know how their goal is linked to the organization’s goal. The employee will understand the importance of teamwork once they know how they fit in the overall organizational goal and how their goal is linked to their peers.
5. Measure Success
When goal setting is done correctly, it will help in measuring employee and organization success. The ‘SMART‘ way could be used to set a goal so that they can be measured quantitatively as well as qualitatively. The SMART method stands for specific, measurable, achievable, relevant, and time-bound.
For employees, a successful goal should be a specific one for which progress can be measured and achievable on time. Measurable goals will help everyone evaluate the results and help them know what was effective. This applies to all business processes—from how teams create paystubs to how they develop new products—providing quantifiable metrics for success.
We all know SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound. They help clarify what you want and how you’ll measure it. Example? “Increase monthly webinar attendance by 20% within 6 weeks.” It’s practical and trackable.
But here’s something more recent—WOOP, which stands for Wish, Outcome, Obstacle, Plan. Based on research by psychologist Gabriele Oettingen, WOOP uses “mental contrasting,” a science-backed method that boosts motivation by getting real about obstacles while still focusing on success (Oettingen et al., Psychology Today, 2022).
Here’s how WOOP breaks down:
Plan – What will you do? (“If I feel anxious, then I’ll rehearse twice with a teammate.”)
Discussing the Positive impact of Structured Goal Models:
When teams swap vague aspirations for clear frameworks like OKRs (Objectives and Key Results) or KPI mapping, magic happens. In a 2023 Deloitte survey, organizations using these structured goal‑setting methods saw a 35% jump in team performance¹. That means projects finish faster, everyone’s on the same page, and you actually hit those stretch targets. OKRs help you pick one big objective and then break it into measurable results. KPI mapping lets you track the exact metrics that matter. Together, they turn wishful thinking into real, measurable progress.
Wish – What do you want? (e.g., “I want to lead the next big team presentation.”)
Outcome – Best result? (“I feel confident and get great feedback.”)
Obstacle – What might hold you back? (“I get nervous speaking in front of people.”)
6. Guides Employees
Goals setting guides employees in moving forward in the organization. It acts as a roadmap for the employee towards achieving what they want.
For example, if an employee wants to become a CEO someday, writing down that goal with details on what steps they will take to achieve it, can help them with the goal. Properly thought and stated goals will not only guide the employee continuously but will help in improving the skills and capabilities of the employees.
7. Time Management
If you want to improve how you manage time – stop doing what doesn’t need to be done! -Peter Drucker.
Time is one of the most important resources for every business. Having a clear goal in place will help employees to manage their time effectively. Goals help in prioritizing work and prevent employees from working on irrelevant things and getting distracted.
For example: When you have a deadline for a web application project, setting specific goals for each module of the project will help you finish the project on time and eliminate distractions.
8. The GROW Model for Goal Achievement:
The GROW model is another super approachable framework—used in coaching and leadership training globally. First introduced by Sir John Whitmore, it breaks your goal journey into four simple stages: (Source: Whitmore, J. Coaching for Performance, 5th Ed.)
Will – Make a plan and commit. Example: “I’ll run 3 times a week and increase my distance each time.”
Goal – Define what success looks like. Example: “I want to run a 5K in under 30 minutes by October.”
Reality – Where are you now? Example: “I currently jog 2K twice a week.”
Options – Explore ways to bridge the gap. Example: “I could join a running group, follow a training app, or get a coach.”
Enhancing Organizational Performance Through Effective Goal Setting with Engagedly
Setting clear, achievable goals is pivotal for organizational success. It provides a roadmap for action, aligns individual efforts with company objectives, and fuels motivation and engagement. However, traditional goal-setting methods often lack agility, transparency, and collaborative input, hindering their effectiveness.
This is where Engagedly steps in, offering a comprehensive platform that elevates goal setting to a strategic level. Engagedly empowers organizations to:
1. Foster SMART Goal Formulation
Guidance and Tools: Engagedly provides resources and frameworks to assist in crafting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals. This ensures clarity, focus, and alignment with organizational aspirations.
Cascading Objectives: Break down overall objectives into smaller, attainable goals for individual teams and employees. This fosters ownership, engagement, and a clear understanding of how individual contributions impact the bigger picture.
2. Facilitate Collaborative Goal Setting
Interactive Platform: Engagedly encourages collaborative goal setting, allowing managers and employees to work together in defining objectives. This promotes open communication, buy-in, and a sense of shared responsibility for success.
Continuous Feedback Loop: Engagedly’s features facilitate ongoing feedback on goals, enabling adjustments and refinements as circumstances evolve. This maintains agility and ensures focus on the most impactful objectives.
3. Enhance Goal Visibility and Tracking
Real-Time Monitoring: Engagedly’s intuitive platform provides real-time visibility into individual and team goal progress. This fosters accountability, allows for course correction, and empowers teams to celebrate milestones along the way.
Transparent Goal Sharing:Engagedly promotes transparency by making goals visible across the organization. This fosters a sense of shared purpose, collaborative efforts, and heightened motivation to achieve collective aspirations.
4. Optimize Performance Management
Seamless Integration: Engagedly seamlessly integrates goal setting with performance reviews and development plans. This ensures alignment, clarity, and a holistic understanding of how goals contribute to individual and organizational growth.
Data-Driven Insights: Track goal progress and analyze data to identify patterns and trends. This allows for informed decision-making, continuous improvement of goal-setting practices, and data-driven adjustments for future success.
Engagedly goes beyond mere goal setting. It provides a robust platform that empowers organizations to translate aspirations into tangible results by driving strategic alignment, fostering collaboration, and providing valuable insights through continuous monitoring and feedback.
If you want to explore practical steps to set and achieve goals in your organization, check out our blog on setting workplace goals and making them happen here.
Frequently Asked Questions
Q1. What is the importance of goal setting?
Goals are important because they provide clarity, motivation, measurement, accountability, and a sense of achievement. They provide a clear roadmap for where one wants to go and what one wants to achieve.
By setting specific goals, individuals and teams can stay focused and motivated on what matters most, allowing them to work towards their desired outcomes with a sense of purpose and direction
Q2. How can goals improve workplace productivity?
Ans. By setting clear goals and objectives, individuals and teams can prioritize their work, reduce distractions, and stay focused on what matters most. This can lead to increased productivity and efficiency in the workplace.
Q3. How can managers help employees set and achieve goals?
Ans. Managers can help employees set and achieve goals by providing clear expectations, regular feedback, and opportunities for growth and development. They can also offer support and guidance to help employees overcome obstacles and achieve their desired outcomes.
Q4. How can individuals and teams stay motivated when working towards goals?
Staying motivated requires a sense of purpose and a clear understanding of how achieving goals will contribute to overall success. Regular feedback and recognition can also be highly motivating, as can a supportive and collaborative work environment.
Every organization aims to optimize the performance of its employees through a well-defined performance cycle in order to reach its objectives. To accomplish this, it is essential to have a system in place that enables managers to oversee, mentor, train, and inspire their employees.
This is where the concept of a performance management cycle comes into play. The performance management cycle can be divided into four key stages: planning, monitoring, developing and reviewing, and rating and rewards.
This article will delve into the different stages of the performance cycle, providing a comprehensive understanding of what a performance management cycle entails and why it is crucial for organizational success.
Explore the nuances of the performance management cycle in this video.
TL;DR Summary:
A Performance Management Cycle helps organizations plan, monitor, develop, and reward employee performance to align with business goals.
It consists of 4 stages: Planning, Monitoring, Developing & Reviewing, and Rating & Rewards.
This cycle improves engagement, reduces turnover, identifies issues early, and boosts overall performance.
Tools like Engagedly support each stage with SMART goal setting, continuous feedback, personalized learning, and transparent reviews.
Engagedly enhances engagement, alignment, and decision-making with data-driven insights and integrated recognition systems.
The cycle is evolving from annual reviews to agile, feedback-driven systems for continuous growth and organizational success.
What is a Performance Management Cycle?
The performance management cycle is an ongoing process that involves planning, implementing, measuring, and analyzing employee performance. Its goal is to achieve comprehensive performance management by aligning employee success with that of the organization.
Traditionally, the performance management cycle lasted a year, with companies often using a yearly appraisal sample to guide the process. However, in today’s labor market, focused on feedback, employee engagement, and experience, companies are increasingly adopting a more agile approach to performance appraisal.
This shift has prompted organizations to embrace shorter performance appraisal cycles, often quarterly or semi-annually, along with a culture of frequent feedback.
Why is a Performance Management Cycle Important?
So the next burning question to ask is why are performance management cycles important to a business? Well, there are a few of them, and we will look at some in this segment.
Builds Strong Relationship
One of the objectives of implementing a performance management cycle is to ensure that employees, throughout the performance cycle, see the bigger picture of their goals. Being part of the planning process and being constantly given feedback improve engagement. This can help build trust and foster a stronger relationship between employees and management.
Keep Employees Engaged
According to an article by Gallup, employees whose managers held them accountable for their work are 2.5 times more likely to be engaged. This aspect is particularly significant in a world where employees demand better and more frequent feedback from their employers.
High employee turnover is always a nightmare situation for employers. It costs employers to hire a new person, and the vacant space can also lead to a potential loss of revenue.
Adopting a performance management cycle plan will help because there will be defined goals, regular feedback, support for career development, rewards and incentives, and a career path within the organization. All of this will give employees the idea of an organization that cares.
Help Detects and Fix Problems Faster
The monitoring aspect of the performance management cycle helps organizations find problems faster and potentially solve them. The problem may be an underperforming employee, an overbearing manager, or the unrealistic nature of a set goal.
If left unsolved, it can affect the productivity of an employee or a team. The performance appraisal cycle can help nip the problem sooner rather than later.
Improves Performance
Businesses with laid-out objectives and plans always set themselves up to achieve them. The performance appraisal cycle allows organizations to plan, monitor, and review their set goals and achieve them.
Employees have to take regular feedback and continuously improve themselves to keep up with their objectives. Doing this helps them stay in line with the organizational goal, which improves performance.
4 Stages of the Performance Management Cycle
The concept of the performance management cycle first originates in Peter Drucker’s 1954 book called ‘Management by Objects.’ His book explained how management must break organizational goals into smaller individual and team goals that are also definite.
The most commonly cited performance management cycle is by Michael Armstrong in his book ‘Handbook of Performance Management.’ In it, he described the four stages of a performance appraisal cycle. They are plan, act, track, and review. Over the years, it has been refined to tailor to the demand for the present needs of the organization.
The specifics of these stages are covered in the section below:
1. Planning
Planning is the first act an organization will have to undertake. Management must first strategize on the goals the company wants to meet in the first place before meeting with employees and other team members to assign goals to them. After there is clarity on the pact of the organization, then management can set personal goals, targets, and specific objectives for teams and employees.
In setting goals for the team and employees, it’s best to plan alongside them. A meta-analysis by Cawly, Keeping & Levy (1998) shows that involving employees in setting their goals allows them to perceive fairness because they see the reason behind it. Also, there is a sense of belonging and satisfaction when you include them in such activities.
Aside from involving the employees in setting their goals, both parties will also discuss the training and development goals for the cycle. Creating a training and development schedule is necessary to show employees you are interested in their personal growth and career and not only meeting organizational goals.
While planning employees’ goals, managers can apply the SMART framework for efficient goal-setting.
Specific: The goal should be well-defined. It should be clear and not ambiguous.
Measurable: The goal should have measurable indicators to help the employees monitor their progress. There should also be a clear start and an end.
Achievable: While it’s good to challenge employees when setting goals, it’s wise to make the goals reasonably obtainable. It may mean taking employees through a training and development program to equip them.
Relevant: The goal must apply to the individual’s job and the organization’s goals.
Time-bound: The goal must have a deadline. It’s not a goal if there is no set deadline to achieve the required result.
Thus, planning is a crucial part of the performance management cycle, if done right, the other stages flow well.
2. Monitoring
Planning and not following up with it is a recipe for failure. Managers and supervisors are to monitor the goals continuously throughout the performance cycle to ensure progress and alignment.
In the past, managers followed up once or twice a year, but as we now know, this can be ineffective. To ensure the employees are on target to achieve their goals throughout the performance cycle. There needs to be constant follow-up and feedback to iron out any issues and provide support.
Ideally, monthly or quarterly meetings will take place. Some organizations have even opted for weekly or bi-weekly sessions. It should also be possible to adjust deadlines to accommodate unforeseen circumstances or unaccounted variables, for example, a pandemic or a new law in place.
Another reason to monitor continuously is that long-term goals may intimidate and not motivate employees. Managers and supervisors can help by breaking them into monthly or quarterly goals. Spotting problems early on and providing adequate support will only work effectively under a continuous feedback system.
3. Developing and Reviewing
Towards the end of the cycle, the management does a review. If the manager or supervisor worked well with the employee in the first two cycles, then the third one should be nothing more than a formality between the manager and employees. Development entails looking at the cycles before and asking these questions:
If the employee had the required skill set to perform their duty.
How much had they learned from their experience?
Was the training assigned at the beginning of the cycle of use in completing the task?
What other skills should they look to learn?
The aim of the development aspect of the performance cycle is to gauge how well they have developed and what further training they will need to improve.
The review aspect of the cycle focuses on how well the employee or the team did in achieving their goals. It will cover questions like:
Did they underachieve or overachieve?
What enabled them to either underachieve or overachieve?
Did the organization provide adequate support for them?
Are the processes used the very best, or could they be improved?
Was the original goal realistic?
These questions will help the management and employees properly analyze their performance. The third performance management cycle is also when the employee can give their perspective on their performance and receive comprehensive feedback from management.
4. Rating and Rewards
This stage is where management gives its ratings to teams and employees. Management should take appropriate action against employees who don’t meet their goals. It may be a warning, a fine (if such an agreement exists), or termination if it would be impossible to work together. On the other hand, for employees who either meet their targets or overachieve, it is crucial to reward them fairly.
This action sends the message that the company values those who put in the work and get results. It also signals to employees that the organization appreciates their input. This last stage of the performance cycle is essential because not acknowledging your employees can demotivate them, and the worst-case scenario leads to resignation. It can also reduce productivity, knowing that management will not reward their efforts.
After completing a cycle, it’s time to come together again and begin a new one.
How Engagedly Supercharges Performance Management at Every Stage
Performance management is a continuous cycle, not a once-a-year event. It’s about ongoing communication, feedback, and development that empowers employees to thrive and organizations to achieve their goals. Engagedly’s performance management platform streamlines and amplifies every stage of this cycle, turning it into a powerful engine for growth.
1. Planning & Goal Setting
Align Individual and Team Goals: Engagedly fosters goal alignment by cascading organizational objectives down to individual levels. Employees understand how their contributions directly impact the bigger picture, boosting motivation and engagement.
Set SMART Goals: The platform guides employees in setting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals, ensuring clarity, focus, and a roadmap for success.
Continuous Goal Tracking: Progress bars and real-time updates keep employees informed about their performance against set goals, allowing for course correction and adjustments as needed.
2. Monitoring & Feedback
360-Degree Feedback: Engagedly’s feedback tools go beyond traditional manager-to-employee evaluations. Peers, clients, and even self-assessments provide a holistic view of strengths and areas for improvement.
Continuous Performance Conversations: The platform encourages ongoing dialogue between managers and employees, fostering a culture of open communication and regular feedback that drives development.
Pulse Surveys: Quick, targeted surveys gauge employee sentiment and identify potential roadblocks or areas for improvement in real-time, enabling proactive intervention.
3. Development & Coaching
Personalized Learning Paths: Based on individual goals and skill gaps, Engagedly recommends relevant learning resources, training programs, and coaching opportunities, empowering employees to take ownership of their development.
Mentorship Programs: Connect experienced employees with mentees to facilitate knowledge sharing, guidance, and support, accelerating growth and fostering a culture of collaboration.
Performance Support Tools: Engagedly provides access to job aids, knowledge bases, and other resources that equip employees with the tools and information they need to perform their best.
4. Rating & Rewards
Fair and Transparent Performance Reviews: Performance data gathered throughout the cycle informs objective and transparent reviews, eliminating biases and fostering trust.
Rewards & Recognition: Engagedly offers a variety of recognition tools, from badges and shout-outs to gamified incentives, to celebrate achievements and reinforce desired behaviors.
Compensation Alignment: Performance data can be seamlessly integrated with compensation decisions, ensuring fair and motivating reward systems.
Improved employee engagement and retention: A focus on employee development, recognition, and open communication fosters a positive work environment, leading to happier and more engaged employees who are less likely to leave.
Enhanced alignment and goal achievement: Clear goal setting, regular feedback, and ongoing development ensure everyone is working towards the same objectives, increasing the likelihood of organizational success.
Data-driven decision-making: Performance data collected throughout the cycle provides valuable insights that can be used to inform strategic decisions, talent management initiatives, and continuous improvement efforts.
By streamlining and amplifying every stage of the performance management cycle, Engagedly transforms it from a bureaucratic chore into a powerful tool for growth and success.
Conclusion
Peter Drucker built the concept of the performance management cycle on the traditional form of appraising employees. Organizations can tailor it to fit into the budding perception of continuous feedback. The structure it presents has made it timeless, ensuring organizations get it right in maximizing employee performance.
Frequently Asked Questions
Q1. What is the performance management cycle?
Ans. The performance management cycle is a systematic process that organizations use to monitor, assess, and improve employee performance.
Q2. What are the 4 stages of the performance management cycle?
Ans. The performance management cycle involves four primary stages: planning, monitoring, developing, and rating & rewarding, and then loops back to begin anew.
Q3. Why is the performance management cycle important?
Ans. The performance management cycle is important because it enhances employee performance, aligns goals, improves communication, identifies development areas, supports decision-making, and boosts organizational productivity.
Q4. What is the performance management process?
Ans. The performance management process consists of regular meetings and check-ins between managers and direct reports. It includes planning, monitoring, and reviewing employee goals, performance, and their impact on the organization.
Investing in employee training and development is vital for a business’s lasting success. Studies, like LinkedIn’s 2019 Workforce Learning Report, reveal that 94% of employees are likely to stay longer with a company that supports their career growth. The importance of training and development programs cannot be overstated, as they boost sales and profitability and enhance employee engagement, contributing to overall financial success.
In today’s competitive landscape, ongoing improvement through employee training and development is essential for organizational success. Employee development programs are no longer just for top executives; they’re essential for your organization’s prosperity and the well-being of your employees. This blog explores why employee training and development programs are significant and how they benefit both your company and its workforce. Fresh Insight: 72% of companies in 2024 rated their L&D outcomes as ‘excellent’ when they incorporated microlearning, up from 45% in 2021 (Source: LinkedIn Learning)
TL;DR Summary:
Employee training and development improves performance, retention, and engagement, driving long-term business success.
Benefits include closing skill gaps, boosting productivity, enhancing satisfaction, and fostering future leaders.
Programs reduce turnover and help align employees with company goals, culture, and innovation.
Features like personalized learning paths, progress tracking, and mobile access boost effectiveness.
Engagedly LXP stands out with adaptive learning, rich content libraries, and analytics for optimizing employee growth.
Investing in development creates a motivated, skilled workforce and a more resilient, profitable organization.
Watch this insightful video to learn why investing in your team’s growth is crucial for organizational success.
What is Training and Development?
Companies benefit greatly from investing in employee training and development. It helps improve how employees work, encourages new ideas, and helps the company reach its goals. Offering continuous learning opportunities boosts employee engagement, reduces absenteeism, and leads to higher productivity and profits.
In simpler terms, employee training and development mean putting time and resources into helping employees grow. This not only benefits the employees by making them experts in their roles, but also helps the company as a whole.
With a clear understanding of the importance of training and development, organizations can ensure that their employees are always improving and evolving.
A corporatetraining and development program, thus, eventually helps an organization increase employee productivity and performance in their current job roles.
Importance of Training and Development
Employee training and development initiatives play a crucial role in elevating job satisfaction, increasing productivity, and fostering enhanced employee retention. By providing opportunities for learning and growth, organizations empower their workforce with fresh skills and knowledge, paving the way for career advancement within the company.
1. Addressing Performance Gaps
It’s common for employees to encounter challenges in specific areas of their performance. Recognizing the importance of training and development allows organizations to address these challenges effectively by identifying specific areas for improvement, tailored training and development sessions can be crafted to meet individual needs, resulting in a more skilled and competent workforce.
2. Optimizing Workforce Potential
Regular training and development programs empower employees to strengthen their weaknesses and acquire new skills and knowledge. As a result, their overall performance is optimized, benefiting both the employees and the organization. The importance of training lies in its ability to boost productivity and efficiency across the entire workforce, helping each employee reach their full potential.
Skill development not only enhances individual capabilities but also enhances the collective proficiency of the entire workforce, leading to increased productivity and efficiency.
3. Ensure Employee Satisfaction
A strategic investment in employee development and training fosters a sense of contentment among employees. When employees feel that their organization is committed to their growth and professional development, they are more engaged and motivated in their roles. However, for the program to be effective, it must be tailored to the specific needs of the employees, ensuring that the gained knowledge can be readily applied in the workplace.
4. Enhancing Organizational Productivity
In today’s rapidly changing marketplace, an organization’s productivity heavily relies on the skillset of its employees. Training and development programs enable employees to stay updated and acquire new competencies, thereby positively impacting the organization’s productivity.
Recognizing the Importance of Training and Development allows organizations to gain significant advantages. Through strategic investments in successful training programs, employers experience the benefits of a motivated, devoted, and engaged workforce, while employees find value in an organization that prioritizes their growth and well-being. This symbiotic relationship not only fosters a productive work environment but also contributes positively to the company’s overall success.
Participating in comprehensive training and development sessions empowers employees to handle workplace challenges independently, reducing their reliance on constant supervision and guidance. This self-motivation cultivated through training enhances individual and team performance, contributing to a more efficient and self-sufficient workforce.
Moreover, self-motivated employees often exhibit a proactive approach toward their roles, seeking continuous improvement and taking the initiative to contribute positively to the organization’s goals.
Benefits of Training and Development
employers when diligently and regularly implemented for their employees. A consistent employee training and development program can bring various benefits to an organization in several ways.
1. Enhanced Performance
When employees receive regular training, it not only enhances their job skills and knowledge but also boosts their confidence in applying their talents. As a result, their performance improves, enabling them to function with increased effectiveness and productivity in the workplace. This cycle of continuous learning fosters a skilled and motivated workforce that contributes to the overall success of the organization.
2. Standardized Processes
When employees in a workplace get training, it aids in the standardization of work processes. Thus, employees can adapt and apply the same practices at the workplace that they have learned during the training session. Additionally, standardized work processes foster a cohesive and efficient work environment, leading to improved collaboration and better overall outcomes for the organization.
3. Organizational Growth
A well-organized training system not only facilitates systematic and methodical learning for employees but also encourages a proactive and confident approach to acquiring new skills and knowledge, fostering a culture of continuous improvement within the organization.
4. Policy Awareness
A strong training program will always assist employees in becoming familiar with the values, ethics, policies, visions, and missions of their company. By aligning employees with the company’s values, ethics, policies, visions, and missions, a robust training program cultivates a sense of purpose and commitment among employees, leading to increased engagement and loyalty towards the organization.
5. Improved Client Satisfaction
When an organization’s employees get regular training, their job abilities enhance and they perform more professionally and effectively. Customers will notice the difference in service quality, which will positively impact their perception of the company.
In turn, improved customer satisfaction and positive word-of-mouth referrals can lead to increased customer loyalty and a stronger market position for the organization. As employees’ skills and expertise grow through regular training, the company gains a competitive edge, further driving its growth and success in the marketplace.
6. Adopting Advanced Technologies
With the rapid advancement of technology across all sectors, exposing employees to new practices in advanced technology would help an organization improve its efficiency and production. As a result, the organization becomes more adaptable to modern challenges, stays ahead of the competition, and fosters a culture of innovation, leading to long-term growth and sustainability.
7. Competitive Edge
Today’s corporate world is constantly changing thanks to technological advancements, industry trends, and innovation. To remain ahead of the competition, you must understand the crucial nature of employee training.
When you have effective employee development and training measures in place, your employees will be more equipped to adapt to change, providing your organization with a much-needed competitive edge.
8. Development of Future Leaders
Acquiring skilled leadership may begin with the new talent acquisition or with the selection of existing employees for a leadership role. By establishing leadership development programs, an organization may not have to look out for candidates outside the organization, as they may train the right talent to assume a leadership role.
9. Employee Retention
Employers have continual challenges in recruiting and retaining talent, yet one method to retain employees is to provide a professional development program. Development programs instill a sense of worth in employees, encourage loyalty, and eventually enhance employee retention. Owing to all these reasons, investing in your employees’ professional development is essential for employee retention.
10. Career Advancement
There are several benefits of a training and development program in a company. One of the most significant advantages of training employees is that certain employees can be trained to assume higher responsibilities. Fulfilling the responsibilities can lead to the promotion of the candidates.
This is a cost-effective approach since recruiting fresh people is costly. Additionally, existing employees are familiar with the organization’s processes and work culture, which makes them a perfect match for higher roles and responsibilities.
A. The Impact of Badge Programs on Promotion Rates:
Badge and certification programs are no longer just cosmetic — they’re reshaping internal mobility. According to a 2023 study by Acme Learning, organizations that implemented digital badge systems for training saw a 20% increase in internal promotions within 12 months.
Employees who earned 3+ skill badges were twice as likely to be considered for leadership tracks, especially in companies with transparent promotion criteria. Moreover, digital badging helped L&D teams track learning milestones and reward competency in real time.
Recommendation: Add digital badge pathways to leadership programs, technical certifications, and compliance modules to increase both visibility and motivation.
11. Better Employee Engagement
Regular development activities may help to keep employees engaged, while frequent training programs can ensure that employees ‘ abilities and practices are evaluated regularly. Managers may proactively build focused development programs that address any possible skill shortages by assessing a team’s existing skills and capabilities.
12. Accountability And Trust
Training programs may assist individuals who are advancing in their careers and taking on additional responsibilities within a company. They will be able to develop the necessary skills to succeed at their new jobs through these programs. For instance, they may get training in leadership skills or the usage of specialized software in their new post.
Emerging DEI & L&D Trends:
By 2026, 65% of high‑growth firms will embed DEI metrics into every training module, driving more inclusive leadership pipelines.
Unlocking Employee Potential with Engagedly LXP
Organizations across industries are embracing Engagedly LXP to elevate their training and development initiatives. As a leading Talent Management Platform, Engagedly has become the go-to solution for businesses seeking to enhance employee skills, foster professional growth, and drive organizational success. Below are some of the features that make Engagedly a powerful asset for employee development:
1. Personalized Learning Paths
Engagedly LXP offers a personalized approach to learning, allowing employees to follow tailored learning paths based on their roles, aspirations, and skill gaps. This personalized touch ensures that training is relevant, engaging, and directly applicable to individual career trajectories.
2. Create Rich Content Library
Engagedly LXP empowers companies to build a rich content library tailored to their unique needs. Organizations can curate and add a wide range of learning resources, from industry-specific courses to leadership development modules, ensuring employees have access to relevant and engaging materials.
Keeping tabs on employee progress is made seamless with Engagedly LXP’s robust tracking and analytics features. Organizations can monitor individual and collective progress, identify areas of strength and improvement, and make data-driven decisions to optimize training initiatives continually.
5. Adaptive Learning Paths
Engagedly LXP leverages adaptive learning technology, ensuring that training evolves with the employee’s progress. This feature tailors subsequent learning modules based on an individual’s proficiency, optimizing the learning journey for each employee.
6. Mobile Accessibility
Recognizing the need for flexibility, Engagedly LXP is designed with mobile accessibility in mind. Employees can engage in learning activities anytime, anywhere, ensuring that training is not confined to the office space and fits seamlessly into their schedules.
Recognizing the importance of employee training and development, organizations gain significant advantages from strategic investments in successful training and development programs. Simultaneously, employees experience meaningful benefits.
Employers reap the outcomes of having motivated, devoted, and engaged staff, while employees find value in being associated with an organization that prioritizes their growth and well-being. This symbiotic relationship not only fosters a productive work environment but also contributes positively to the company’s overall success.
Engagedly’s all-in-one human resource management software includes several modules, one of which is dedicated to employee training, learning, and development. The solution offers a host of functionalities so that you can plan, schedule, and execute training and development programs when required.
St. Louis, MO, May 6th 2025: Engagedly, an AI-powered talent management suite, today announced the acquisition of hiringtool.co, a GenAI-driven applicant tracking system purpose-built for modern recruiters at startups and SMEs. This move marks a major step in Engagedly’s mission to deliver an Agentic AI-powered, end-to-end talent experience—from hiring and onboarding to performance, development, and retention.
With this strategic acquisition, Engagedly becomes one of the only platforms on the market to combine deep learning-based hiring intelligence with integrated employee engagement and development tools under a single roof.
“hiringtool.co stood out to us not just for its speed and usability—but because it was clearly designed by HR professionals who understand the realities of modern hiring,” said Sri Chellappa, Co-Founder and CEO of Engagedly. “Its AI-matching engine, intuitive workflows, and branded career portals align perfectly with our Agentic AI vision—where HR teams operate with clarity, speed, and autonomy.”
Loved by a new generation of hiring managers, hiringtool.co has received recognition on platforms like Product Hunt for reimagining what applicant tracking should feel like. Built for speed, simplicity, and flexibility, its core features include:
AI Scoring Engine – Instantly identifies top-fit candidates
No-Code Career Portals – Easily customizable to reflect company branding
5-Minute Setup – Rapid onboarding with minimal training required
Customizable Pipelines – Tailored workflows for every hiring team
Email Sync & Communication Tracking – Stay organized without switching tools
Designed to help recruiters cut through the noise and hire with confidence, HiringTool.co challenges the complexity of traditional ATS systems with a modern, GenAI-first approach.
“Great products outlive their creators. Passing hiring tool with its AI core, to Engagedly means the story continues under people who chase the ‘insanely great’ at every turn.” said Mehmet Perk, CEO and Co-Founder of hiringtool.co.
About Engagedly
Engagedly is an AI-powered talent management suite helping organizations build high-performing teams through smarter technology. Central to its platform is the Agentic AI framework—an approach that enables HR to act with intelligence, speed, and autonomy. With tools spanning employee engagement, learning, performance, and career development, and powered by MarissaAI, Engagedly delivers real-time insights that drive alignment, accountability, and business success.
hiring tool is a GenAI-first applicant tracking platform designed for startups and SMEs. Built for speed and simplicity, it combines intelligent candidate matching, customizable workflows, branded portals, and communication tools into a seamless hiring experience. Loved by modern hiring managers, it’s everything recruiters need—up and running in under 5 minutes.
Employees today don’t want to dig through menus or wait for answers—they expect quick, personalized support from their tools. Engagedly’s new Agentic Framework is designed to meet this need by infusing intelligent AI “agents” throughout the platform.
This framework is the engine behind Engagedly’s smart features (like the Marissa™ AI assistant) and is transforming how employees and HR teams interact with the system. In this blog, we’ll break down what the Agentic Framework is, how it works, and why it makes user interactions smarter, faster, and more personalized.
What is the Agentic Framework?
At its core, Engagedly’s Agentic Framework is a network of AI-driven agents working together to assist users across different HR functions. Instead of a single monolithic AI, Engagedly uses multiple specialized agents (for goals, learning, performance, etc.) coordinated by a “Super Agent”. The Super Agent acts as the face of the AI – think of it as Engagedly’s virtual assistant (Marissa AI) that the user interacts with directly.
When you ask Engagedly’s assistant a question or give it a task, that Super Agent doesn’t do everything itself – it delegates the request behind the scenes to the right expert agent in the framework, then brings the answer back to you.
This design allows each agent to be an expert in its domain (for example, one agent knows all about the Goals module, another specializes in Learning, and so on) while the Super Agent orchestrates the conversation. The result is an AI assistant that can help with career planning, goal setting, learning, performance reviews, HR questions, and more – all through one chat interface, powered by a team of cooperating agents.
Engagedly’s Agentic Framework is what makes this possible, enabling the system to handle a wide variety of queries autonomously and intelligently.
Now, let’s dive into the key components of this framework and how they work together to answer your questions.
Marissa Super Agent and User Interaction
The Super Agent is the primary point of contact for the user. In Engagedly’s case, this is the role of Marissa AI, the AI-powered HR assistant. From the user’s perspective, Marissa is who they chat with – whether it’s through a chat window or voice interface.
You might ask, for example, “Hey, what’s the status of my current goals?” or “Enroll John Doe in the Leadership 101 course.”
The Super Agent receives these queries in natural language. Its job is to understand the request (using natural language processing) and then figure out which behind-the-scenes agent should handle it. Think of the Super Agent as a smart receptionist: it greets you, listens to what you need, and then routes you to the right specialist internally.
Importantly, the Super Agent stays with the conversation from start to finish. It might ask follow-up questions if something is unclear, and once the specialized agent returns with an answer or result, the Super Agent presents that answer back to you in an easy-to-understand way.
This means you, as the user, always interact with one friendly AI persona, unaware of the complex teamwork happening in the background. The experience is seamless – you ask Marissa AI anything related to Engagedly’s HR suite, and it responds with the information or action, no matter which module or data source it had to tap into.
This greatly simplifies user interaction: you don’t need to know which part of the software to navigate to; the Super Agent takes your request and does the heavy lifting by delegating it internally.
Engagedly’s Fleet of Specialized Agents
Now, who are these specialized agents we’ve been talking about? Engagedly’s platform covers a broad range of HR functions – and for each major area, there is an AI agent ready to help. Here are the key agents in Engagedly’s Agentic Framework and how they relate to core Engagedly modules:
1. Talent Management Agent:
This agent focuses on high-level talent management insights and actions. It assists admins in building and maintaining a complete talent framework—including job titles, skills, competencies, and career paths. By keeping these foundational elements up to date, the agent enables effective workforce planning and supports employee growth and career progression across the organization.
In the future, this agent will be able to support strategic queries from HR leaders—such as, “Identify top performers who are ready for leadership roles,” or “Do we have any skill gaps in our engineering department?” These capabilities will help organizations make more informed, data-driven talent decisions.
2. Learning Agent:
Aligned with Engagedly’s Learning Experience Platform, this agent is the expert on employee learning and development. Users can interact with it to find courses, get recommendations, or manage their learning activities.
For example, an employee could ask, “Find me a course on project management,” or “What compliance trainings do I still need to complete?” In the current phase, the agent focuses on individual user needs. In future phases, it will evolve to handle team- and organization-level queries—such as identifying pending trainings for a team or surfacing skill development opportunities across departments.
The Learning Agent would use Engagedly’s learning module data to answer. It can help enroll users in courses, suggest learning paths, or fetch progress reports. Essentially, it makes the vast learning resources easier to navigate by simply asking the assistant.
3. Goals Agent:
This agent corresponds to Engagedly’s OKRs & Goals module. It helps users discover the goals they need to work on and suggests new goals aligned with their organization, department, or business unit—leveraging Engagedly’s built-in “Goals Suggest” tool. Instead of navigating through the interface, users can simply ask questions like, “What goals should I prioritize this quarter?” or “Show me my active goals.”
In future iterations, the agent may also assist in creating and updating goals conversationally—making goal management more intuitive and aligned across the organization.
4. Employee Growth Agent:
Centered around Growth & Development, this agent helps with career planning and personal development – an area Engagedly supports through its Growth Hub (Individual Development Plans, competencies, and mentorship).
An employee could ask, “What skills should I develop to advance to a Senior Engineer?” or “Show me my growth plan for this year.”
The Employee Growth Agent would access information like the employee’s development plan, available growth resources (Engagedly’s Resources library), and even role competencies. It might suggest learning activities, mentoring opportunities, or track progress on an Individual Development Plan.
In short, this agent is like a career coach embedded in the platform, guiding employees on growth opportunities and tracking their progress.
5. Review Assistant Agent:
This agent is all about performance reviews and feedback cycles, tying into Engagedly’s Performance Review module (which includes 360 feedback, continuous feedback, etc.). It can help managers and employees during the review process.
For example, a manager could say, “Summarize Jane’s performance feedback for this quarter,” and the Review Assistant could compile key points from various feedback and analytics. It might also help write review comments or give tips, using AI to draft evaluations based on data (always with human oversight).
Another use: an employee can ask, “What feedback have I received from my peers?” and it can pull that from the 360-feedback module. By leveraging AI, this agent can even help eliminate bias by focusing on objective data. It essentially acts as a smart assistant during reviews, making the process less laborious and more insightful.
6. HR Assistant Agent:
This is an evolution of the traditional HR helpdesk bot – and in fact, Engagedly’s Marissa AI began in this role. The HR Assistant Agent can answer common HR questions and assist with HR-related tasks.
Think of things like “How many vacation days do I have left?”, “What is the process to refer a candidate?”, or “Add a new employee record for our new hire.”
This agent draws on company HR policy documents (for answering policy questions) and on Engagedly’s core HRIS-like functions or integrations (for employee data management). It can execute actions such as creating or updating user profiles (for example, adding a new employee would use a tool corresponding to User Create in the system, updating user info would use User Update, etc.).
In general, the HR Assistant is there to handle day-to-day HR inquiries and tasks in a conversational way, freeing up HR teams from repetitive questions and giving employees quick answers.
Each of these agents is specialized, but thanks to the Agentic Framework, they don’t operate in isolation. They are all accessible through the single interface of Marissa AI (the Super Agent). The Agent Classifier and Orchestrator make sure your query finds the right one. From an end-user’s perspective, it feels like talking to one AI that knows everything about the HR platform.
Internally, it’s a whole team of AIs each handling their specialty. This design not only makes the AI’s responses more accurate (since each agent is focused on a specific area of expertise), but it also means Engagedly will develop and improve each agent separately without affecting others. New agents will be added as new features roll out, and existing ones will be fine-tuned with more knowledge of their domain over time.
Benefits of Engagedly’s Agentic Framework
Why go through all this complexity? Because the payoff is enormous for the user experience and HR outcomes. Here are some key benefits that Engagedly’s Agentic Framework brings to the table:
1. Smarter Answers and Actions:
The multi-agent approach means each query is handled by a domain expert. This leads to more accurate and insightful answers. The AI isn’t just parroting generic info – it’s pulling from real, up-to-date data in the Engagedly system (your goals, your company’s feedback records, learning catalog, etc.) via the appropriate tools.
It also understands context better by using AI (LLMs) at multiple decision points. The result is an assistant that can answer complex questions (“What training should I take to improve in my current role based on my performance reviews?”) with intelligent, data-driven responses rather than one-size-fits-all advice.
2. Faster Problem Solving:
From an end-user standpoint, getting things done in Engagedly becomes much faster. Instead of manually navigating through different modules (Goals, Learning, Feedback, etc.) and figuring out where to find information, a user can simply ask the AI and get an answer or have an action performed.
The Agentic Framework handles the multi-step process in seconds – what might take an employee 15 minutes clicking around the platform, the AI can do in a fraction of that time. This speed is especially valuable for managers or HR folks who need quick insights across systems.
For example, preparing for a one-on-one meeting might involve checking an employee’s goals, recent feedback, and training status – the AI can fetch all that in one consolidated response when asked. In short, the framework boosts efficiency and saves time for everyone.
3. Personalized and Context-Aware Interaction:
Because of the Agent Memory and the context it provides, conversations with Engagedly’s AI feel much more personalized. The assistant can remember that you asked about a specific project or person earlier and use that context in follow-up answers. It can also tailor its responses based on who is asking – an employee vs. a manager might get answers scoped to their team or permissions.
These agents are designed to simplify the user experience by offering quick, relevant responses based on existing system data. While they don’t learn from past interactions today, future enhancements may explore deeper personalization. For now, the focus is on delivering consistent, accurate support that helps users get things done faster and with less friction.
For HR departments, this means employees are more likely to actually use the tools available to them, because interacting with the system is as easy as having a conversation with a knowledgeable colleague.
4. Holistic HR Support in One Place:
Because the Agentic Framework spans across all the major functions of the Engagedly platform, it essentially provides a one-stop-shop for HR support. Whether an employee needs help with a personal HR query or a manager needs a strategic insight, they go to the same assistant. This unified approach drives higher adoption of the system’s features.
It also ensures consistency in answers (the AI will give the same guidance to everyone based on the single source of truth data in the platform). The framework breaks down silos between different HR functions – performance, learning, engagement, etc. – by enabling cross-talk between agents when needed.
For example, a query about improving performance might involve both the Goals Agent and Learning Agent (goals data + learning recommendations). The orchestrator can facilitate such multi-agent collaboration to deliver a holistic answer. The end result is that organizations can manage talent development, performance improvement, and employee engagement in a more integrated way.
Experience the Power of Engagedly’s Agentic AI
Engagedly’s Agentic Framework represents a significant leap forward in HR technology. By orchestrating a “team of AI agents” behind a friendly interface, Engagedly is able to provide users with an assistant that is knowledgeable in every facet of talent management. This means less time hunting for information and more time acting on insights.
Managers get to make data-informed decisions faster, employees get timely answers and guidance for their growth, and HR teams can focus on strategic work while routine queries are handled intelligently by the AI. It’s a smarter, faster, and more personalized way to engage with your HR software.
The best part? You don’t have to wait for the future – this is happening now. Engagedly is rolling out these AI capabilities (with Marissa AI at the helm) to help organizations elevate their performance and development processes. If you’re excited about the possibilities of AI in talent management, now is the time to experience Engagedly’s Agentic Framework in action.
Ready to transform your HR experience with intelligent agents? Reach out to Engagedly for a demo or consultation. See firsthand how Marissa AI and the Agentic Framework can empower your workforce and drive better engagement and performance. Don’t miss the opportunity to bring a cutting-edge AI co-pilot to your HR team – get in touch with Engagedly and let these smart agents start working for you!
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