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November 29, 2005
Employers, Workers Say Performance Programs Need Work

Two recent surveys indicate that there is room for improvement for managers to link pay with performance, offer career development, and provide coaching and feedback to employees.

For the complementary surveys, Watson Wyatt and WorldatWork polled 1,100 workers and 265 large U.S. companies.

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While 92 percent of employer say their performance-managment programs are designed to link pay to performance, only 79 percent of employers say that managers at their organization are moderately or greatly effective at it. Employees see even more room for improvement with only 52 percent indicating that their managers tie pay to performance

The researchers found that 82 percent of employers say their performance-management programs are designed to include career development, but they say they have been less successful in implementing this and other parts of the programs.

Only 31 percent of employees say their companies offer career development, and only 37 percent of employers say that managers at their organizations are at least moderately effective at providing it, according to the surveys.

Fewer than six in 10 employers (57 percent) think that managers at their organization are moderately or greatly effective at providing coaching and feedback to employees throughout the year; 48 percent of employees report that this is the case.

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