How leaders can use AI to improve performance management

"Employers dread performance management, with 71% of CHROs acknowledging that managers fail in this area, impacting employee performance and organizational success."

"Only 52% of employees believe performance management is aiding in achieving business goals. Bias perceptions hinder effective performance management."

"87% of employees think algorithms could provide fairer feedback than their managers, indicating a shift in expectations toward AI in performance evaluation."

"Only 34% of employees believe that algorithm-provided feedback would be fairer, showing skepticism towards the adoption of AI in performance management."

A significant challenge in performance management is that 71% of CHROs believe managers are inadequate in this area, resulting in insufficient employee feedback. Consequently, only 52% of employees feel that performance management supports organizational goals. Perceived bias and unfairness contribute to these inefficiencies, leading 87% of employees to view algorithms as potentially offering less biased feedback than human managers. Despite enthusiasm for generative AI in enhancing fairness, skepticism remains, with only 34% trusting algorithmic feedback to be fairer than manager feedback. CHROs must assess GenAI benefits against existing pain points to improve performance management effectiveness.

Read at Fast Company