C. Allen Gorman, Ph.D., industrial-organizational psychologist and associate professor of management at UAB Collat School of BusinessFeedback and trust are the foundation of high-performing teams. Traditional performance management systems often fail because they rely on infrequent, hurried evaluations, rigid and poorly defined rating criteria, and a top-down approach. Lacking employee input and buy-in, these systems can feel punitive rather than developmental, leading to employee disengagement and feedback resistance.

To fix performance management systems, C. Allen Gorman, Ph.D., industrial-organizational psychologist at the University of Alabama at Birmingham Collat School of Business, suggests implementing a continuous two-way feedback model.

“Organizations should prioritize transparent and honest communication and adopt a more dynamic, continuous two-way feedback model that emphasizes frequent check-ins, coaching and goal-setting,” Gorman said.

According to Gorman, when employees feel valued and empowered, they exhibit boosted engagement, stronger relationships and improved performance. 

“Constructive, honest and open, continuous two-way feedback supercharges employee growth and team alignment, while trust enables a high degree of psychological safety and stronger collaboration,” Gorman said.

Gorman emphasizes the importance of the role of leaders at all levels in keeping employees engaged and motivated by transforming performance management into a growth-focused tool.

“Shifting infrequent, year-end evaluations to a system of continuous feedback and development, we encourage regular coaching conversations, setting mutually developed, clear and adaptable goals and recognizing employee achievements,” Gorman said.

Gorman says it is important for leaders to model well-being and prioritize “both” people and results in their actions. He suggests the following actionable strategies to create an environment where employees can thrive:

• Including well-being as a key part of leadership development programs
• Prioritizing and incentivizing a culture of well-being and psychological safety
• Linking performance criteria to sustainable work practices
• Checking in with employees regularly
• Flexible work policies
• Personalizing development plans

“These practices can help skeptical employee perceptions of performance management systems,” Gorman said. “When employees have been in the loop about their progress yearlong, they can be more amenable to accepting feedback constructively during their annual evaluations.”