How Poor Leadership is a Lurking Problem in Performance Management


Mark Twain said there are three kinds of lies. Lies, …er… darn lies and statistics. But the statistics below paint a serious picture of issues in performance management. And based on what we know about engagement, performance and productivity in the workforce, we can safely say, these are probably not in any of Mr. Clemens categories of lies. Check out these statistics and see if you can identify the lurking problem in performance management and what (or who) is causing it!


46% of companies say “leadership” is the hardest skill to find in employees.

It’s a fact! And with leadership being so critical to employee performance success, it’s worse that only 36% of employees listed “leadership” as a strength in their organizations. Employees don’t have it, employers can’t find it, we have a lack of leadership.

Tweet This: Can you consider your organizational leadership as a strength?

Most organizations are operating with a 5-10% productivity drag that better leadership practices could eliminate.

Poor leadership practices may be costing organizations as much as 7% of their total annual sales. Not to mention the horrible effect bad leadership has on employee turnover. Organizations can expect a 32% voluntary turnover rate when bad leadership is left unchecked.

Tweet This: Is management the reason for employee turnover?

64% of organizations say developing leaders to be effective coaches is the single greatest opportunity for improving and sustaining employees’ performance excellence.

Leadership development programs are a critical component for turning managers into leaders. Of the 39% of companies in a study offering leadership development programs, only 15% of the participants feel the training they receive is preparing them for the next position. Unfortunately, a whopping 81% of organizations indicated that their leaders are not at all, or only somewhat, effective at developing their employees.

Tweet This: How do you prepare future leaders for success?

86% of business and HR leaders believe they do not have an adequate leadership pipeline.

2 out of 3 leaders stated in a study that they wanted more coaching and feedback than they currently get. In order for employee performance to thrive, managers need to be trained to offer more feedback and do it in a positive, constructive way.

Employees who say their managers help them set performance goals have higher rates of engagement.

When leaders establish performance management practices to help individuals identify work priorities and goals, a culture of engagement and increased employee performance is encouraged.


So now that you know what (and who) is the issue that affects poor performance, what is your plan? Reviewsnap offers a learning management system, a compensation module, a performance management solution and a 360-review platform, all in one transparent and intuitive dashboard. Try it free for 10 days and start building leaders in your organization!

Download: Automated Performance Reviews Work Better

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