Traditional vs. Progressive Performance Management [Infographic]

by Jacqueline Martinez May 22,2019

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Ideally, performance reviews are supposed to be helpful, not only for the employee but the manager also. But with the way most organizations tend to run them, they breed disengagement more than anything else.

It seems impossible to condense a year’s worth of work into a meeting which does not last for more than 30 minutes, but it does happen frequently. And more often than not, the meeting in question feels like a one-way communication street where most employees can’t respond adequately to the feedback they receive.

CEB Gartner took the initiative of calculating how much annual performance reviews cost an organization. An organization that is 10,000 employees strong, spends around $35 million a year on performance reviews. When you use the above figure as a benchmark, even an organization that is 500 employees strong may spend close to $25,000 annually on performance management. Mind you, this is a rough estimate. And, it might seem like it’s not a lot of money. But when you factor in money and the time spent by both managers and employees on an activity they don’t believe in, this is where the cost hurts organizations.

Even if one were to keep aside the cost of performance reviews and write it off as a necessary organization experience, it does not change the fact that managers have to spend an average of two working days per employees, preparing for their performance review. Two working days might still seem acceptable in an organization that is small. But what about enterprise-class organizations like Deloitte, who found out that annually, they spent 1.8 million hours talking about performance reviews alone. Yes, you read right, 1.8 million hours were just spent talking about performance review processes, not the performance review process in itself. For context, Deloitte is an organization that is 65000+ employees strong.

This is the case with traditional performance review practices.  They cost time and money and leave most employees feeling unsatisfied with the process itself.

When old or traditional practices don’t work, it makes sense to let go of old practices and adopt new ones. But this begs the question, what’s the difference between traditional and progressive performance management and how does it change anything?


Read Next: 4 Performance Review Mistakes To Avoid

Looking to switch up performance management practices at your organization? Why don’t you request a live demo from our experts to see how Engagedly can help you!


Jacqueline Martinez
Director of Marketing

Jacqueline Martinez is the Director of Marketing at Engagedly, where she leads initiatives to fuel the marketing-to-sales pipeline through strategic content management, revenue operations, and thoughtful mentoring. She is a growth-focused marketing executive with extensive experience driving multi-million-dollar revenues across SaaS, technology, real estate, oil & gas, and financial services industries.

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