Improving performance management through fairness

In one of my favourite evidence-based articles, McKinsey set out how organisations can improve the impact of their performance management by focusing on how fair employees perceive it to be.

The research focuses on the benefits of ensuring procedural fairness, i.e., that how performance management is done rather than the outcome is perceived as fair by employees.

According to the research McKinsey have conducted, performance management systems that do the following are most likely to be perceived as fair:

1. Transparently link employees’ goals to business priorities and maintain a strong element of flexibility 

2. Invest in the coaching skills of managers to help them become better arbiters of day-to-day fairness 

3. Reward standout performance for some roles, while also managing converging performance for others

I have worked with several organisations to enhance their performance management in line with well-grounded research.  If you would like to read the full article, here is the link: [can we upload the pdf and link it?? If not, here is a link to the online McKinsey article - https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/the-fairness-factor-in-performance-management

Hancock, B., Hioe, E. & Schaninger, B., 2018. The fairness factor in performance management. McKinsey Quarterly, April, pp. 1-10.