Unveiling the Impact of Poor Leadership on Performance Management
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Mark Twain said there are three kinds of lies. Lies, ...uh... damned lies and statistics. But the statistics below paint a serious picture of the problems with performance management. And based on what we know about workforce engagement, performance and productivity, we can safely say that this probably doesn't fall into any of Clemens' categories of lies. Take a look at these statistics and see if you can identify the lurking problem with performance management and what (or who) is causing it!
46% of companies say that "leadership" is the most difficult quality to find in employees.
It is a fact! And since leadership is so important for employees to perform well, it's even worse that only 36% of employees cite "leadership" as a strength of their organization. The employees don't have it, the employers don't find it, we lack leadership.
Most organizations have a productivity loss of 5-10% that can be eliminated with the help of better leadership.
Poor leadership can cost organizations as much as 7% of total annual revenue. Not to mention the terrible effect bad leadership has on turnover. Organizations can expect a voluntary turnover rate of 32% when poor leadership is not controlled.
64% of organizations say that developing leaders to become effective coaches is the biggest opportunity to improve and sustain employee performance.
Leadership development programs are an important component of turning managers into leaders. Of the 39% of companies in a study that offer leadership development programs, only 15% of participants believe that the training they receive prepares them for their next position. Unfortunately, a whopping 81% of organizations responded that their managers are not at all, or only somewhat, effective when it comes to developing their employees.
86% of company and HR managers believe that they do not have sufficient management development.
2 out of 3 managers state in a survey that they want more coaching and feedback than they get today. In order for employees to perform better, managers must be trained to give more feedback and to do so in a positive and constructive way.
Employees who say their managers help them set performance goals are more engaged.
When managers establish a performance review software that helps employees identify work priorities and goals, a culture is created that promotes engagement and better performance.
In the realm of performance management, poor leadership emerges as a formidable adversary, impacting engagement, productivity, and organizational success. Recognizing and addressing this challenge is pivotal for sustained improvement. So now that you know what (and who) influences poor performance, what's your plan? IceHrm offers a system for performance management software that will make strong leaders inside your company.
