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Posts Tagged ‘Talent management’

Stop Calling Them “Natural Performers”: The Biggest Myth in Employee Performance Management

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There’s one at every workplace. That employee everyone describes as a “natural.” 

“They just have it,” “They’re born for this,” “They’ve always been a high performer.”

The John XBox or Jane Hollywood of a company. Somehow, they never falter nor waver. When someone is landing everything perfectly, it’s natural to focus on an inherent quality like talent, intelligence, discipline, a strong work ethic, or an ineffable X factor the rest of us apparently weren’t born with. Just as it’s natural to attribute struggle to a lack of those qualities, such as “They’re just not cut out for the job” or “They don’t have what it takes.” 

It sounds like it makes sense. Oftentimes, too much sense, and in this case, that is right on the money, for this is one of the most prevalent myths of performance management.

Talent exists, undeniably, but performance alone seldom comes close to telling the full story. Consider this – have you ever seen an incredibly strong performer jump teams and inexplicably become mediocre? Or someone who struggled under a manager excel under a different one? To go even further, maybe an entire department magically improved after the head of the department changed, yet all of the people in that department were the same? 

Those kinds of scenarios simply shouldn’t happen if performance were just an inherent personality trait. Yet they do, and they happen in almost every single company there is.

Why?

Well, because performance doesn’t travel with employees inside their briefcases. It’s a consequence of continuous interplay between an individual and the ecosystem in which they work, and in this, too, too many companies get it wrong.

The Dangerous Habit of Labeling People as “High Performers”

We love our labels. We stick them on people as if they’re goods on a shelf: 

  • High performer.
  • Low performer.
  • Top talent.
  • Underachiever.

They’re very handy mental shortcuts which allow us to compartmentalize humans into well-defined categories. The difficulty is that humans aren’t quite as easy to define as rows on a spreadsheet. To say someone is a high performer is to implicitly attribute performance to their stable characteristics, akin to eye color. However, performance isn’t a static characteristic but a dynamic and conditional one.

  • A software engineer who is performing wonderfully in a dynamic startup may be flailing in a large, monolithic organization where there are six layers of approval for any change.
  • A world-class salesperson may be a dismal failure when asked to sell a product they don’t believe in.
  • A competent project manager can completely underperform in an environment where they are constantly being micromanaged.
  • A highly creative designer may seem average in an organization that values strict adherence to templates over original thinking.
  • An experienced leader can look surprisingly ineffective when placed in a team that lacks trust and psychological safety, making honest communication impossible.

Did all of these people suddenly lose their abilities just like that? Were their skills Thanos-snapped?

Absolutely not, but their environments definitely were, and herein lies an extremely expensive error on the part of organizations: they consistently seek to fix underperformance by replacing people rather than fixing the environment people work in.

Now, this is not to say that any person can be made to perform well in any job. Certain jobs will require certain interests or native abilities; therefore, hiring the right person still matters. With that said, once a person has been hired well, we are still very much left with the task of setting up the right environment to let them succeed. Now, these aspects are two very different issues.

Talent Matters, But Not in the Way We Usually Think


Perhaps one of the more thought-provoking differences comes from Gallup’s work in talent. According to them, talent is “any relatively natural pattern of thinking, feeling, or behaving.” Skills and knowledge can be developed or trained.

Often, we bundle it all together into one word: “talent” 

  • Someone is great at giving speeches? “They’re talented.” 
  • Someone is a shrewd negotiator? “Natural talent.” 
  • Someone consistently solves tough problems? “Gifted.”
  • Someone effortlessly builds strong relationships wherever they go? “People person.” 

Yet that doesn’t seem to answer the actual questions that arise regarding talented people: 

  • What % of that is actually talent?

  • What % is built through years of experience?

  • What % is deliberate practice?

  • What % is confidence through success and repetition?

  • What % is working in the right kind of environment to allow those things to flourish? 

When you begin to ask those questions, the cause of high performance is far less simplistic and turns out to be a multi-faceted phenomenon. Talent clearly affects potential, can make some tasks seem easier, speeds learning, allows faster progress compared to peers, etc, but potential isn’t performance. Potential still requires a certain amount of opportunity, environment, instruction, and practice to consistently lead to excellent performance.

Words Shape the Way We Manage People

Here’s an interesting tidbit: a 2023 study published in the Journal of Organizational Behavior and Human Decision Processes found that just labeling an attribute as “talent” rather than “skill” caused people to frame that attribute differently. Namely, when managers and HR personnel referred to a trait as talent, it seemed more fixed and less malleable. This made them more skeptical about whether an employee would improve over time and more prone to hire someone else than develop their existing employee.

Let us ponder these findings for a moment: if we believe top performance is largely something that you either have or you don’t, coaching feels futile, does it not? Training feels like an expense rather than an investment. Development feels like a nice-to-have, an optional extra. After all, why work with someone who “just doesn’t have it”?

This is little more than a small tweak to language, but a large tweak with significant effects on the management systems we build, and maybe that’s the problem with the “natural” performer story: not that it recognizes great performance, but that it silently suggests it cannot be built.

Employee Performance Is an Outcome, Not a Personality Trait

Here’s a thought experiment that feels relevant for our subject.

Suppose two companies hire exactly the same employee: same background and education, same amount of experience, same personality profile, same motivation to succeed, and same range of abilities and aptitudes. For all intents and purposes, the employees feel the same.

Six months later, one company believes he has leadership potential and expects a great deal more. The other company has already put him on a performance improvement plan.

So what has changed? What has led us to this particular conclusion?
➡️ The environment around the employee. ⬅️

This is not a hypothetical scenario either, since organizations experience it every day. Employees move to other companies, and suddenly they flounder, or flourish if the environment is right. A team that was failing under one leader suddenly soars under another. Organizations undergo reorganizations, and productivity simultaneously improves, or gets worse, when it’s pretty much the same set of people doing the same set of jobs.
There would be no way to account for such phenomena if performance was wholly inherent in the individual. Once we recognize performance as a resulting variable, however, these phenomena become easily understandable.

We are tempted to look for performance within the individual as though it were a stable attribute or personality characteristic. That’s not really how this works, since performance is more like the solution to an equation, while the individual is one element of the equation. An individual’s skills, knowledge, experience, and desire contribute an element that can be measured and can fluctuate or grow or shrink over time. The individual’s “potential” contributes an element, too, but the conditions within the environment contribute other elements. 

Removing these external obstacles to performance, you can watch even ordinary people exceed all your expectations. Adding them, you can watch even outstanding individuals fail miserably.

This is not to suggest that everyone can perform optimally in any role, nor that organizations are responsible for every failure of an individual’s performance. However, this mindset suggests that looking only at the individual rarely tells the full story. Unfortunately, that’s all many organizations bother with.

The Best Employees Don’t Just Work Hard: They Work in Better Conditions
One of the most enduring myths about high-performing businesses is that they’re just full of talented people. Their hiring departments simply don’t miss. Somehow, they manage to fish the best possible recruits out of the entire hiring pool every single time, without fail.

Obviously, hiring is important; in many ways, it’s the most crucial decision a business can make. That’s where the similarities end, though, between all these companies.

Here’s a practical example: think of a Formula 1 racing team.

Even if they have the best driver in the world behind the wheel, that team isn’t winning races with a faulty engine, slow pit stop crew, worn-out tires, and an uncertain strategy. The fastest car alone won’t make an average driver a winner because performance arises from the interaction between the individual and the environment they work in. 

Work in any company, SMEs or large corporations, is no different. An exceptional employee with uncertain goals, conflicting objectives, out-of-date processes, and frequent interruptions will not perform at their highest potential.

However, an employee who may not be as extraordinarily skilled could nonetheless excel when clarity of expectations, quick decisions, and mutual trust prevail. This also explains some of the misunderstandings surrounding high-performance teams: at first glance, these groups operate effortlessly; projects move quickly, people naturally collaborate, problems get sorted out before they snowball into full-blown crises. It is understandable, thus, to conclude that these teams are simply packed with more talented individuals than other groups. 

In the majority of cases, this is simply not true. Rather, these groups have something else going for them: trust.

Information flows faster, errors are caught earlier, knowledge is shared, conflicts are resolved, and the team progresses quicker not due to rash behaviour, but rather because they spend less time questioning each other’s work.

Talent drives individual contributions, but trust determines the overall performance of those contributions as a team.

The Talent Trap: Why We Love Simple Explanations

  • Humans are great storytellers and even better simplifiers.
  • Does someone succeed? OH, they’re talented. 
  • Does someone falter? Oh, they’re lazy.

Such bare-bones reasoning takes the pressure off of having to tackle more complex motives. 

Yet simple stories don’t often describe how the workplace operates. 

Meet Bill, an individual sales representative whose quarterly sales goals have started to consistently fall short. Now why is that? What is the real reason that Bill went from hero to zero? 

  • Maybe it’s poor performance, but then again, the organization DID implement a new CRM and no one knows how to operate it. 
  • Maybe it’s due to marketing changing their process for qualifying leads. 
  • Maybe it’s a shift in pricing that made their products less competitive. 
  • Maybe their sales territory was reconfigured, and that caused it. 
  • Maybe they have a new manager. 
  • Maybe the demands of their customers have changed. 
  • Maybe it’s everything, everywhere, all at once. 

Performance is often the outcome of numerous causes all working on each other simultaneously. Labeling a person as a good or bad employee can hardly ever capture a realistic, useful picture. 

Research that Morten Hansen has conducted over several years examined the variables of individual employee performance and led to the same conclusions. He found that an individual’s performance has much more to do with how they perform – their habits, practices, and attitude toward the work – than with any other variable, like demographics, job tenure, or merely working more hours. This suggests performance is neither haphazard nor fixed; instead, performance is the result of countless decisions, many of which an organization is making all the time.

What Great Managers Understand That Others Don’t

One of the largest differentiating factors between average and high-performing managers is not necessarily the way they measure performance, but the way they conceptualize it. When an employee is performing poorly, average managers may jump to, “What’s wrong with this employee?” Great managers are likely to ask something else first: “What’s getting in the way of this employee performing well?”

One assumes that the problem lies in the employee, while the second assumes that there might be something to explore before concluding that. This “something else” could be capability, motivation, fit for the role, training, lack of clear expectations, the leader assigned to them, or any of a multitude of factors. It may be that someone is put in a position in which their talents rarely get a chance to make a difference. High-performing managers know that those other factors aren’t excuses; they are variables.

Ignoring them will never solve them.

In fact, if the purpose of performance management is indeed better performance (rather than simply better documentation), a manager would be wise to learn the impact of all the variables.

Stop Looking for Perfect Employees. Start Building Better Performance.

Organizations grow performance; they don’t just hire it. Talent, experience, and skill are all equally important for different facets of a job or task.

However, they all matter within a larger ecosystem. Brilliant hires can lose motivation just as easily as unexceptional people can rise to exceed all expectations. A great team working cohesively will often eclipse a collection of equally brilliant individual players. This situation has been witnessed time and time again, and proven through decades of research into organizational behaviour, yet somehow, organizations almost always resort to the same diagnosis when perceiving any shortfall in performance: “We need to hire better people.”

On the one hand, sometimes, this is true. There is no denying that on more than one occasion, you simply need a better person for that job. On the other hand, every now and then, the truly right person has been put in the wrong job, and no amount of mentoring or coaching can compensate for fundamental misalignment. 

If hiring the “right people” becomes the standard operating procedure for addressing performance gaps, organizations risk skipping over a much more complex (and, truthfully, a much less convenient) question: 

“Have we actually created an environment in which talented individuals have the chance to flourish?”

Performance Management Starts Long Before the Performance Review

One of the supreme ironies in the business world is that we approach performance management as a process that starts when an employee receives their annual performance appraisal. By then, the decision has already been made. 

Performance management starts when you hire the employee, then continues through onboarding, expectations, communications, coaching, trust, leadership, learning, rewards, and all the microinteractions that never make it to the appraisal form. Simply put, the review doesn’t create performance; it just reports it, and that’s a crucial difference because it transforms performance management from a judgmental process into a growth one, and these are two almost completely different things. 

One process asks, “How did you perform?” and the other asks, “What do we need to do to help you perform better?” The second question is almost always the more helpful one, because the primary purpose of any organization is to improve performance. Accountability is an essential part of a healthy ecosystem, but simply performing measurements in relation to it is not enough. 

The companies that consistently outperform all others recognize this intuitively. They aren’t focused on identifying that mythical, perfect, Herculean employee; rather, they are focused on systems that can help average employees excel, and excellent employees stay excited.

The Biggest Myth Was Never About Talent

We began our foray into this article’s main topic with a counterintuitive notion:

“High performers are born, not made.“

As a collective, humanity has had the Maybelline “Maybe she’s born with it” mentality since we could pick ourselves up from the ground. There are, of course, natural strengths people bring that help them succeed in certain roles, and it would be a disservice to ignore those as much as it would be to discount the importance of talent altogether.

Yet, in the grand scheme of things, talent is but a sliver of a larger system. Performance is an intersection of people and the context in which they perform. It depends on leadership, trust, learning opportunities, quality feedback, role clarity, and systems that clear a path versus those that silently raise obstacles. 

It’s no surprise, then, that the term “high performer” is somewhat of a red herring. The label invites us to view performance as an identity instead of an output. As soon as we typecast somebody, we ask questions less about what led to that result and more about whether that person is indeed a high performer. 

  • Was it a great insight? 
  • Great leadership? 
  • Decades of training? 
  • An inspiring colleague? 
  • A set of clear objectives? 
  • All of these combined?

Organizations that continue to pose the question invariably get better; organizations that have stopped get better at chasing talent.

Final Thoughts

If performance isn’t simply a matter of talent, then the obvious question follows: what determines employee performance?

The leaders in our organizations? The company culture? Trust? Motivation? Training? Workload? Autonomy?

In reality, as we’ll discuss in the next installment of this series, many “unknown forces, often self-inflicted by the organizations that employees inhabit,” play an enormous role.

Identifying and understanding those forces is the initial stage for creating the conditions for superior performance, rather than something that occasionally appears for high performers. Once organizations stop asking “who are our highest performers,” they can then turn their attention to a more pressing and important question: “What kind of organization helps average people do excellent work?”

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Move beyond labeling employees as high or low performers and learn how to build the conditions for better performance. Explore the systems and practices behind effective employee performance management with Certified Employee Performance Management.

What Is Employee Performance Management? Definition, Framework, and Examples

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Employee Performance Management (EPM) is the structured, ongoing process of setting expectations, tracking results, and developing people so that individual effort connects to organizational goals. It is not the annual review form. The review is one meeting inside a much longer cycle that runs from goal-setting through coaching, measurement, evaluation, and reward.

This guide covers:

  • What Employee Performance Management is, and how it differs from a performance appraisal
  • How EPM operates across organizational, departmental, individual, and personal levels
  • Why organizations invest in EPM, and what happens when they don’t
  • The EPM architecture: the building blocks that connect strategy to a single employee’s daily work
  • The Employee Performance Management cycle — planning, monitoring, developing, rating, rewarding
  • How to run an effective appraisal meeting, including feedback techniques
  • How EPM connects to talent management, career planning, and succession
  • Common mistakes organizations make when implementing EPM

What Is Employee Performance Management?

Employee Performance Management is a structured process of planning, measuring, and improving how an individual employee contributes to organizational results. It typically involves setting objectives and KPIs, tracking progress, evaluating results against standards, giving feedback, and using what’s learned to guide development, pay, and career decisions.

Ask a room of employees what “performance” means to them and the answers tend to split down the middle. Some see it as a way to earn a bonus or a promotion. Others describe it as a bureaucratic, time-consuming exercise. In between sit people who say it clarifies their objectives, motivates better work, or builds their competencies. All of these reactions are valid, and they usually reflect how well — or how badly — an organization has built its EPM system. A well-designed system produces the motivating, clarifying version. A poorly designed one produces the bureaucratic, box-ticking version.

That gap is the entire reason EPM exists as a discipline: the same underlying idea — measuring and improving people’s work — can land as either a genuine driver of performance or a resented compliance exercise, depending entirely on how it’s structured.

Performance Management Operates at Multiple Levels

Performance management isn’t a single activity; it operates at different altitudes, each with its own focus and its own tools.

  1. Strategic (organizational) level. Deals with the achievement of overall organizational objectives. This is where mission, vision, values, and 3-to-5-year goals get set, and it’s sometimes called corporate, business, or enterprise performance management.
  2. Operational (departmental) level. Puts the accent on achieving departmental objectives inside the organization, translating strategy into functional plans. Dashboards are the tool of choice here.
  3. Individual level. An integrated system meant to improve the performance of each employee, with responsibilities aligned toward the achievement of shared goals. This is the level most people mean when they say “performance management.”
  4. Personal level. Full self-management across life areas — a structured approach an individual applies to their own balance and development, separate from any organizational system.

A useful test: an executive board meeting to review strategy is strategic; monitoring overtime or deploying work activities toward individual objectives is individual; department restructuring based on established goals is operational; tracking your own steps per day is personal. Confusing these levels — running individual-level conversations with strategic-level tools, for example — is one of the fastest ways to make an EPM system feel disconnected from real work.

Why Employee Performance Management Matters

EPM earns its place in an organization when it changes behavior, not just when it produces a score. Done well, it:

  • Improves quality of work by defining clear expectations for each role
  • Brings better understanding of work processes, so employees know not just what to do but why
  • Aligns the efforts of each employee to corporate strategy, closing the gap between the boardroom and the desk
  • Reduces subjectivity in decision-making around pay, promotion, and development
  • Assures continuous learning and improvement of individual performance over time
  • Builds a performance culture, where measurement is used for improvement rather than for control or sanction

That last point matters more than it looks. The same measurement activity can serve very different purposes: measurement for improvement and measurement for understanding your role build trust; measurement mania, measurement for control, and measurement for sanctioning erode it. Two organizations can run an identical KPI dashboard and get opposite results, depending on which of these purposes the dashboard actually serves.

The shift in communication style tracks the same divide. Annual evaluations built on one-way, unilateral, manager-to-employee communication tend to feel punitive. On-going performance discussions built on two-way, bilateral dialogue and feedback tend to feel developmental — even when they’re measuring the exact same KPIs.

The EPM Architecture

Employee Performance Management doesn’t function as one form or one meeting; it’s a set of connected building blocks that carry strategy down to an individual’s daily work and back up again as evidence.

At the top, the Strategic Plan at organizational level and the Operational Plan at functional level feed a Competencies Framework and a Behaviors Framework, both anchored in a formal Performance Management Policy.

Those frameworks, together with the job description, are used for establishing performance criteria — the objectives, KPIs, competencies, and behaviors an individual will be measured against — which in turn shape that person’s career plan.

Through the year, performance is tracked via an individual performance (IP) scorecard, a daily log, competencies and behaviors observations, and informal feedback — the raw material for the formal IP evaluation.

That evaluation feeds a development plan (linked to a training policy and training plan) and a set of reward-and-recognition decisions: a rewards policy, a pay-for-performance plan, succession management, and employee engagement.

Four levels sit underneath this architecture:

When this architecture is built correctly, a single employee’s daily task log can be traced all the way up to a strategic objective — and a strategic objective can be traced back down to the specific behaviors expected of the person doing the work.

The Employee Performance Management Cycle

At its core, the EPM cycle runs through five stages: planning, monitoring, developing, rating, and rewarding.

  1. Performance setting meeting. The manager and employee set performance objectives, set development goals, and agree on the resources the employee will need. This is where standards get communicated and both assessor and assessed are prepared for what’s coming.
  2. On-going performance evaluation. Through the year, actual performance is measured against the standards set. This isn’t a single event — it’s continuous monitoring, informal feedback, and course-correction.
  3. Mid-year review. Results to date are discussed, formal feedback is given, and improvement opportunities are planned. Both manager and employee prepare for this meeting in advance. Its results do not influence the year-end evaluation — it exists purely to course-correct.
  4. End-of-year appraisal. Past performance is discussed, potential is identified, and career path and development aspects are addressed.
  5. Reward. When standards are reached, the cycle closes with recognition — tied to a rewards policy and, often, a pay-for-performance plan. When standards aren’t reached, the cycle instead produces improvement measures and feeds back into planning for the next cycle.

Underneath every step, four roles carry distinct responsibilities:

  • The manager discusses objectives, KPIs, and standards with the employee; aligns responsibilities; provides resources; evaluates performance and gives feedback; conducts appraisal meetings; and fills in scorecards.
  • The employee contributes to setting their own objectives and the methods to reach them, prepares self-evaluations, and contributes to setting their own development measures.
  • Senior management establishes business strategy, validates appraisal results, manages disagreements between employee and manager, and validates the decisions that come out of appraisals.
  • HR coordinates the administrative process and provides support and counsel to both sides.

Measuring and Rating Performance

Most EPM systems combine three inputs into a single performance score: results (KPIs), competencies, and behaviors. Two common ways to combine them:

  • Simple average: (KPI score + Competencies score + Behaviors score) ÷ 3
  • Weighted average: KPI score × x% + Competencies score × y% + Behaviors score × z%, where x + y + z = 100% — for example, weighting results at 70%, competencies at 20%, and behaviors at 10%

Results themselves are usually scored against a target band — results meeting target (typically above roughly 95% of target), results in a tolerance interval (roughly 90–95%), and results far from target (below roughly 90%). Overall performance is then translated into a rating scale, commonly a five-point scale running from Unsatisfactory through Needs Improvement, Meets Expectations, and Exceeds Expectations, up to Exceptional. Competencies and behaviors are frequently rated on a similar five-point frequency scale (Never through Always).

These scores are also the raw material for talent-review tools like the 9-box grid, which plots current performance against future potential to guide succession and development conversations.

Running the Appraisal Meeting

The appraisal meeting is the most visible part of EPM, and also the part most likely to go wrong if it isn’t structured. A well-run meeting typically follows this shape:

  • Opening: create a positive climate, review the meeting’s objectives, and agree on its structure
  • Performance analysis: go topic by topic through results and appreciation, discuss causes and consequences, and only move to the next topic once agreement is reached — without negotiating the facts
  • Improvement initiatives: set concrete steps by mutual agreement, support the employee in achieving future performance, and put the agreement in writing

Useful questions to structure that discussion include how the employee reached their targets, what factors helped or hurt the results, how they assess their own performance, which competencies they used most (and least), and what they’d suggest to remove obstacles going forward.

Feedback quality inside that meeting matters as much as the structure. The research is blunt about the stakes: companies with regular employee feedback see meaningfully lower turnover, and highly engaged employees report getting feedback far more often than disengaged ones — while employees who are ignored by their manager are roughly twice as likely to disengage. Most employees say they want more feedback than they’re getting; most managers believe they’re already giving enough.

Good feedback, whether reinforcing or redirecting a behavior, tends to follow the same shape: describe the specific behavior, explain its impact, listen to the recipient’s reaction, and land on a concrete plan for what happens next. Vague praise (“you’re doing a great job, keep it up”) and personal criticism (“don’t you know anything about this?”) both fail for the same reason — neither one tells the employee which specific behavior to repeat or change.

EPM and Talent Management

Performance data doesn’t stop at the appraisal. It feeds directly into talent management: career planning, coaching and mentoring, internal talent mobility, succession management, and leadership development. An employee’s demonstrated competencies and results are the evidence base for their career plan and for whether they’re a candidate for succession into a more senior role. Succession management, in turn, protects the organization against the risk of losing critical knowledge and capability when someone leaves — building a pipeline rather than scrambling to fill a vacancy after the fact.

Common EPM Mistakes

A handful of failure patterns show up repeatedly:

  • Treating it as an annual event. A system built around a once-a-year form, with no on-going monitoring or mid-year check-in, turns into a post-mortem rather than a tool for real-time course correction.
  • One-way communication. Performance management delivered top-down, without dialogue, feels imposed rather than owned — and employees disengage from targets they had no hand in setting.
  • Measurement without purpose. When KPIs are tracked for control or sanction rather than improvement, the system breeds defensiveness instead of better performance.
  • Vague feedback. Praise or criticism that doesn’t name a specific behavior gives the employee nothing to repeat or change.
  • Disconnected levels. When individual objectives aren’t visibly linked to departmental and strategic goals, employees can’t see why their work matters — and the architecture that’s supposed to connect strategy to daily work breaks down.
  • No follow-through. An evaluation that doesn’t feed a development plan, a reward decision, or a career conversation is data collected for no purpose.

Most of these trace back to the same root problem: a system designed around administering a form, rather than around the ongoing manager–employee dialogue the form is supposed to support.

Frequently Asked Questions

What is the difference between performance management and a performance appraisal? The appraisal is a single meeting — usually the end-of-year evaluation. Performance management is the full cycle around it: planning, monitoring, developing, rating, and rewarding.

How often should performance be reviewed? Most modern EPM systems combine a formal planning meeting and a formal year-end appraisal with an interim mid-year review and continuous informal feedback in between — rather than relying on one annual conversation.

What’s the difference between a competency and a behavior in this context? Competencies are the skills and capabilities an employee brings to a role. Behaviors are how they’re expected to act day to day in pursuit of their targets, usually defined in an organization-wide behaviors framework that applies to all personnel.

Who owns the performance management process? Senior management sets strategy and validates outcomes, HR coordinates the administrative process and offers support, and the manager and employee jointly own the day-to-day objective-setting, tracking, and feedback.

How does EPM connect to pay? Through a pay-for-performance plan that’s explicitly linked to the individual performance evaluation — one of several outputs, alongside development plans, training plans, and succession decisions, that come out of a properly closed EPM cycle.

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Editor’s Note: This guide draws on the Certified Employee Performance Management Professional course curriculum (The KPI Institute, 2022) and the HR Performance Management System Toolkit (The KPI Institute, 2021).

Expert Interview Series: Balancing People, Performance, and Growth with Mariham Magdy

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In high-stakes industries like oil and gas, human resources (HR) is more than an administrative function; it’s the engine of operational stability.  With over 18 years of corporate experience, Mariham Magdy has built a career navigating the high-pressure demands of this field. As a facilitator for The KPI Institute, she leads the Certified Employee Performance Management Professional, empowering practitioners to bridge the gap between individual output and departmental goals.

A versatile expert, Magdy also delivers the other certifications: Certified KPI Professional, Certified Strategy and Business Planning Professional, Certified Balanced Scorecard Management System Professional, Certified Agile Strategy and Execution Professional, and Certified Strategy and Performance Maturity Assessment Professional. Moreover, she is an award-winning researcher, receiving the Best ROI Article 2018 award from the ROI Institute for her contributions to the field. 

In this feature, Magdy shares her approaches to professional development. She explores how leaders thrive in fast-paced environments by treating individual strengths as milestones in a larger narrative. By moving beyond one-size-fits-all briefings, Magdy provides a roadmap for integrating employee well-being into performance discussions to ensure that measurable results never come at the cost of the individual.

Can you describe your current role and how your daily responsibilities relate to HR strategy and performance management?

I’m deeply involved in a wide range of HR functions. I’m a strategic HR leader in end-to-end recruitment, ROI-driven talent initiatives, and organization design. By integrating sophisticated selection tools like Competency Based Interview (CBI) and the Myers-Briggs Type Indicator (MBTI), I align human capital with business objectives. My expertise spans HR governance, total rewards, and leadership development (GLA 360), ensuring operational compliance and a sustainable competitive advantage for global clients.

Have you worked in fast-paced or high-pressure environments? If so, can you describe your experience? If not, how do you think employee growth should be included in performance discussions without losing focus on operational results?

Yes, I do have extensive experience thriving in demanding settings, particularly within the oil and gas industry, which is known for its dynamic and high-pressure nature. I have over 18 years of corporate experience, starting from building HR departments from scratch to managing all HR functions. 

My experience spans from handling HR operations in the oil and gas sector, including offshore personnel coordination. This has required me to respond swiftly and effectively to unexpected challenges, ensuring both operational continuity and support for the team. Furthermore, leading strategic management and planning initiatives has allowed me to align HR practices with business needs in rapidly changing environments, while implementing performance systems and KPIs that have ensured organizational goals are met even under pressure. 

Moreover, delivering training to various management levels in fast-paced sectors has allowed me to maintain quality and engagement, even when timelines are tight.

With your experience in HR, consulting, and training, how do you see the connection between individual development and organizational goals?

In today’s dynamic business environment, organizations are constantly seeking ways to align their strategic objectives with the evolving needs and aspirations of their workforce. 

I see the connection between individual development and organizational goals as a catalyst for sustainable growth and innovation for both the organization and the individual. When people see clear pathways for advancement and understand how their growth aligns with broader company goals, they are more likely to innovate and go the extra mile. 

Our role then as organizations and learning and development (L&D) professionals is to integrate personal development plans with organizational KPIs. Thus, leaders can transform their teams into engines of achievement and resilience.

When setting performance expectations, what approaches help clarify goals while reflecting each employee’s strengths?

Imagine a team meeting at the start of a new quarter. Instead of delivering a one-size-fits-all briefing, the manager gathers everyone and begins with a question: “What does success look like for each of you, and how can your unique talents help us get there?” 

As each team member shares their perspective, the manager listens intently, making note of individual strengths and weaving them directly into the team’s targets. By breaking down overarching objectives into personalized, strength-based tasks, everyone feels seen and valued. Over time, these goals become more than mere metrics; they transform into milestones in an ongoing story where each person’s specific abilities move the team forward. 

I always love to apply Steve Jobs’ philosophy with my team: “We don’t hire smart people to tell them what to do, we hire smart people to tell us what to do.”

How do you identify the competencies that matter most for employees in different functions, such as training, consulting, or corporate HR?

Identifying the right competencies for employees in diverse functions like training, consulting, and corporate HR starts with understanding both the unique demands of each role and the broader goals of the organization. 

The key is to combine data-driven methods—such as analyzing top performers and collecting feedback from stakeholders—with an appreciation for the evolving landscape of each function. We also have to review job requirements, stay attuned to industry trends, and invite input from employees themselves to ensure that competency frameworks remain relevant and empowering across all areas.

How do you align employee behaviors with performance criteria while keeping assessments flexible and practical?

Leaders should start by clearly articulating what successful behaviors look like in the context of specific roles and team objectives. These criteria should be transparent and directly linked to the company’s values and goals, ensuring that everyone understands how their work and behaviors contribute to the big picture.

To keep assessments practical, organizations can incorporate regular check-ins, peer feedback, and self-reflection opportunities. This creates a dynamic feedback loop where employees are empowered to adjust their approach and see how their behaviors drive results. Flexibility then comes from recognizing that excellence may manifest differently across individuals and situations. As such, performance criteria should allow room for creativity and personal strength.

Based on your experience, what role do informal feedback and day-to-day interactions play in helping employees reach their performance goals?

Let’s imagine a typical scenario that we witness: a busy office where, between project deadlines and team meetings, small conversations happen in the hallway or over coffee. These everyday moments of feedback, often spontaneous and genuine, create a culture where improvement feels natural and supportive rather than intimidating. When employees know their efforts are recognized in real time, they’re more likely to adjust behaviors, reinforce positive habits, and stay motivated.

Informal feedback acts as a compass, keeping everyone on course toward their performance goals, one conversation at a time. 

How do you balance structured evaluation processes with opportunities for personal growth for employees?

Structured evaluations, such as annual reviews, goal setting, and competency frameworks, provide clarity and consistency in measuring performance. However, these formal processes must be complemented by avenues for personal growth that acknowledge each employee’s unique talents and aspirations. This could be by encouraging employees to pursue stretch assignments or by allowing space for mentorship, skill-building workshops, and self-directed projects that foster creativity and initiative. 

I believe that managers can use performance check-ins to discuss both progress on specific targets and areas where the employee wishes to grow. This dual focus helps employees feel valued for their achievements and empowered to shape their own professional journeys.

When planning development initiatives, what factors guide your choices about which skills or behaviors to focus on?

I prioritize skills and behaviors that not only address current performance gaps but also anticipate future challenges, such as technological changes or shifting client expectations. Gathering input from employees and managers helps ensure that our focus areas are relevant and impactful. This creates opportunities for growth that are meaningful and aligned with our business objectives.

How do you measure progress in employee development beyond standard metrics?

I look for signs such as increased initiative, adaptability to new challenges, and a willingness to take on stretch assignments. Qualitative feedback from peers and managers, examples of creative problem-solving, and evidence of willingness to mentor others are strong indicators of development. 

Additionally, I consider how employees pursue self-directed learning, seek feedback, and contribute to a positive team culture. These factors help paint a fuller picture of professional growth that metrics alone cannot capture. 

From your perspective, what trends in performance management are influencing HR practices in Egypt and the wider region today?

In Egypt and the wider region, performance management is increasingly shifting toward continuous feedback and development-focused conversations rather than relying solely on annual reviews. There is also a growing emphasis on leveraging technology platforms to streamline performance tracking and data-driven decision-making, which makes the process more transparent and accessible for both employees and managers.

Additionally, there is a trend toward integrating employee well-being and engagement metrics into performance discussions, reflecting a more holistic approach to talent management. As companies are increasingly recognizing the importance of aligning individual and team objectives with organizational strategy, they are focusing on building a culture of continuous learning and adaptability to remain competitive in a rapidly evolving market.

How do you manage the balance between meeting immediate targets and developing longer-term skills in your teams?

I encourage team members to identify learning opportunities within their current projects, so that skill-building becomes part of daily work rather than a separate activity. I also support both the achievement of business objectives and the cultivation of future capabilities within the team

When employees have high autonomy, what practical steps help maintain accountability and alignment with performance expectations?

When employees have high autonomy, it’s important to establish clear goals and regularly communicate expectations to ensure accountability and alignment. Setting measurable criteria, along with frequent check-ins or progress reviews, helps maintain focus and provides opportunities for feedback. 

Additionally, fostering a culture of transparency—where team members openly share updates and challenges—encourages mutual responsibility and ensures everyone remains aligned with performance standards.

From your experience, how should feedback be structured to support learning and measurable performance outcomes?

By including well-being and engagement measures, organizations can promote continuous learning, adaptability, and a culture of shared responsibility. Effective feedback in high-autonomy teams should be clear, timely, and actionable, focusing on specific behaviors and measurable outcomes while fostering open dialogue and a growth-oriented mindset.

What strategies work best for keeping motivation and engagement when teams face heavy workloads or tight deadlines?

When teams encounter heavy workloads or tight deadlines, maintaining motivation and engagement hinges on several key strategies. It begins with the clear communication of priorities, which helps individuals focus on the most critical tasks and reduces overwhelm. To sustain this focus over time, breaking large projects into manageable milestones and celebrating small wins can sustain momentum and reinforce progress. 

Additionally, regular check-ins support sustaining the efforts in order to acknowledge effort, offer support, address challenges, and create a supportive environment that values both results and well-being.

Throughout your career, which leadership practices have had the greatest impact on employee performance in demanding work settings?

We can summarize leadership practices that have the greatest impact on employee performance in three simple steps: setting clear expectations, communicating priorities effectively, and fostering an environment of open dialogue. 

Additionally, recognizing and celebrating incremental achievements sustains engagement and reinforces progress even during high-pressure periods. Promoting transparency around workload and inviting team input also empowers employees to co-create solutions, building trust and a sense of shared responsibility.


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Inspired by Mariham Magdy’s perspective on aligning employee growth with organizational performance?

Take the next step with The KPI Institute’s Certified Employee Performance Management Professional course—where you might have the opportunity to learn directly from her as a facilitator.

Meta, Amazon Push Stricter Employee Performance Standards

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Meta To Roll Out Changes to Performance Review System in 2026

Tech giant Meta is redesigning the way it reviews employee performance in 2026, according to a report by Business Insider.

The revamp will incorporate a review platform dubbed Checkpoint, which will be used to re-examine employee performance biannually to determine if there are any changes. Checkpoint will hone in on identifying both top and bottom performers, rewarding the former with bonuses that could amount to up to 300% of their pay. 

“While our employees have always been held to a high-performance, impact-based culture, this new direction allows for more frequent feedback and recognition in a more efficient way,” a Meta spokesperson said.

Meta is set to implement the changes in the middle of 2026.

Amazon Now Requiring Proof of Productivity for Performance Evaluations

Amazon’s annual review process, known internally as Forte, now reportedly requires employees to list three to five primary accomplishments for the year as proof of their performance. This information was gleaned from internal guidelines acquired by Business Insider. 

The guidelines define accomplishments as “specific projects, goals, initiatives, or process improvements that show the impact of your work.” 

Amazon’s mandate for employees to provide proof of productivity during performance reviews appears to be part of a larger cultural shift in the corporate sector. In September 2025, xAI employees were also asked to list their responsibilities and accomplishments to determine their future in the company. 

AI Layoffs Continue to Impact Tech Sector

The technology sector has been hit with another round of layoffs. Quarterly reports indicate that one of India’s prominent IT services firms, TCS, has laid off around 30,000 employees over the span of six months. This massive downsizing was reportedly driven by widespread artificial intelligence (AI) adoption within the tech industry. 

These layoffs are not localized phenomena. On the other side of the world, Silicon Valley has faced similar circumstances, as 2025 also saw several AI-driven layoffs. 

The layoffs appear indicative of a trend, something many experts expected. In 2025, Goldman Sachs published a report predicting AI-driven layoffs to continue. .

Study Shows Employees Find Narrative-Based Performance Reviews Most Fair

A study conducted by researchers at Cornell University found that narrative-only feedback is considered by employees as the most fair form of feedback in the context of performance reviews. Published in December 2025, the study compared responses from 1,600 employees to performance feedback organized in three formats—numerical-only, narrative-only, or mixed. 

The researchers attribute the study’s findings to the employees’ perception and interpretation of data. “We guess that the presence of a numeric component in the combined feedback may have been interpreted as evaluative or accountability focused [sic], rather than developmental. Employees may view feedback with numerical ratings as highlighting their weaknesses,” they wrote in the report.

Despite the findings, the researchers are hesitant to recommend exclusively using narrative-only performance assessments, stating, “…if you don’t have numbers, there can be some other disadvantages when you are trying to do things like administer bonuses or promotions.”

Employee Turnover and Retention: The Impact of Various Talent Management Practices

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The Great Resignation was among the top headlines in 2021. It highlighted the significance of employee retention. Even though most businesses are aware that the expense of replacing employees is substantial, management is still not putting enough emphasis on retaining their personnel. The possibility is that the failure occurred due to a lack of serious effort or an inability to implement retention effectively. In any case, knowing the interrelationship between turnover, talent management, and retention is critical for HR decision-makers. 

The Global Business and Organizational Excellence journal published their research done in 2021 to investigate talent management practices as a strategic technique for employee retention, to control employee turnover intentions, and to analyze how talent management practices affect employee retention and turnover intentions. This article will go over each of the sub-objectives, hypotheses, and associated outcomes, and then draw conclusions.

Before diving into the study, it may be worth taking into account the employed research method. The proposed hypotheses are tested using a quantitative method-multiple linear regression. The samples used are 236 responses from Indian IT companies. 

The following  are the four sub-objectives that influenced the research on retention intentions:

  1. Recruitment and selection

    The first hypothesis is framed in terms of the impact of recruitment and selection on employee retention: “The higher the degree of satisfaction with the recruitment and selection process, the higher the rate of employee retention.” The result shows that it has a positive effect on employee retention intentions, but was not statistically significant. This means that the recruitment and selection process can affect employee retention intentions, but is not as significant as other practices discussed later.

  2. Performance and career management

    The second hypothesis states that “Employee performance and career management positively affect turnover and retention intentions.” This means that employees who have opportunities for development and career progression are more likely to stay in the company for a longer period of time and feel happier and more loyal to their employers.

  3. Teamwork and management support

    The research’s third hypothesis is that “Teamwork and management support positively affect employee retention intentions.” This proposition is also statistically supported by the result, meaning that teamwork and management support increases employee retention intentions. The result showed that teamwork and management support increases an employee’s retention intentions. Employees that work as a team form bonds and trust with one another, which can help in employee retention.

  4. Salary and compensation

    Last but not least, the fourth hypothesis of the research is that “There is a significant positive association between salary and compensation and employee turnover and retention intentions.” The test revealed that the positive relationship between compensation and retention intentions was approved and statistically significant. Moreover, salary and compensation emerged as the most important factors for employee retention, which is also in line with other research.

In summary, the result of the research highlights the importance of talent management practices on talent retention. The talent retention process starts from recruitment, then the company’s performance management system and team support would provide a comfortable environment for employees to grow and progress their careers. Salary and other forms of compensation are important to attract and retain talent, as salary is one of the primary motives for employment.

These talent management practices each contribute in their own way, but when executed collectively, you may not need to find new talents as frequently as you usually do.

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