Advanced’s annual Performance Management Report has found that 72% of young employees would leave their job for a role that provided better stress and burnout support.
According to Deakin University, Australians aged under 25 typically remain in their jobs for less than two years.
The 2023 State of the Future of Work report recommends that “Workplaces need to prioritise workplace mental health and provide greater support that addresses issues like burnout and mental distress” to avoid losing their prime-aged workers.
Employees facing burnout believe their companies could do more for them, but employers often feel they don’t have the time or resources to invest in continuous performance management.
31% of HR directors surveyed stated that they don’t have the time to spend on continuous performance management, with 36% saying they don’t have the budget to invest in a performance management system.
Despite 91% of HR directors agreeing that burnout is a serious issue, the Report showed that only 27% of directors rated employee productivity and engagement as their top priority in 2023 (down from 48% in 2022).
In contrast, 40% of directors rated performance as their top priority in 2023 (up from 40% in 2022).
Performance is proven to be directly linked to continuous engagement with staff, yet productivity and engagement remain a lower priority for HR directors in 2023.
Advanced People Management Managing Director, Nick Gallimore, states that engaging in meaningful goal setting, providing real-time feedback, and ongoing coaching is the key to improving performance.
“The science on performance is very clear…Improved performance comes from continuous engagement with three behaviours: meaningful goal setting, real-time feedback and coaching…but many of us are still choosing to do something else. We’re choosing forced engagement with annual performance management processes.”
– Nick Gallimore, Managing Director, Advanced People Management
Traditional performance management techniques, such as annual ratings and appraisals, are fast becoming untenable as they do little to address burnout or provide ongoing support to employees.
The Report indicated that poor performance management influences employee engagement and productivity.
Continuous performance management is being hailed as the solution to both staff burnout and improving performance.
Performance management covers multiple processes within an organisation, including regular communication, goal setting, development plans, performance tracking and open feedback.
Frequent one-to-one employee conversations allow for progress tracking and genuine connection, allowing HR managers to understand how staff are coping.
The report found that 2 in 5 employees (39%) say performance management at their organisation is basic or actively bad. Without effective and meaningful conversations around performance and well-being, employees may be more stressed and less motivated at work.
“We as a business have moved away from the annual performance review and support the continuous performance element of regular just in time conversations and objectives.”
Michelle Norgate - Human Resources Advisor - The Wine Society
“A strong performance management culture ensures employees are aligned to a company’s vision and goals thus seeing how important their contribution is to its success. This also drives culture, engagement, reward and recognition.”
Katie Battersby - Head of Learning, Development and Culture – Space NK
Advanced is a dynamic business software and services provider with 25,000+ customers and 2,700 employees offering enterprise and market-focused solutions that allow our customers to reimagine what is possible, innovate in their sectors and improve the lives of millions of people.
The Annual Performance Management Report is in its fourth year, with Advanced actively discussing the role of performance management in organisational success for the past six years, tracking the changing ways in which organisations and individuals have adopted performance management principles.
Name of Company: Advanced ANZ
Phone: +61 (3) 9021 8658
Contact Details: Elysha Stephens - ANZ Head of Marketing
Address: New South Wales, Australia
Source: 38 Digital Market News
Release ID: 698030