Performance Management in 2025: Setting Goals for the Future of Work
The workplace of 2025 is probably one of the most innovative and challenging yet. A mix of in-office, hybrid, and remote is only the beginning of a long list of myriad elements that shape this new workplace, bringing with it as many roadblocks as opportunities.
In this dynamic setting, where the traditional meets the new like never before, how do HR and management teams approach performance management? We all know an agile and holistic approach is just what’s required, but what are the performance goals to set for 2025 that will truly empower employees and drive organizational success?
We reached out to our HR and leadership community seeking answers, and received in return a range of performance management strategies to unlock the full potential of a workforce.
Read on!
Mindy Honcoop
Fractional HR Leader & Advisor, Agile in HR
Shift to Continuous Feedback and Development
For 2025, my goal in performance management is a shift to how organizations approach feedback-from a governance activity focused on documenting past performance to the daily practice of continuous feedback and forward-focused development. This cultural shift entails making the whole process one of building an environment for real, trusted conversations that develop people and impact business outcomes-less about compliance.
The traditional model of performance management can be reduced to a set of checkboxes: managers gather feedback, document it, and then deliver it in some formalized, transactional review. This approach misses the full potential of feedback as a tool for growth. I want to see performance management integrated into daily work rhythms where feedback is timely, relevant, and connected with the achievement of business goals.
It will work only where trust lives within the workplace. Employees and managers need an ecosystem in which they can say their words without judgment. The Five Behaviors of a Cohesive Team can be helpful, supported by DISC in working with teams to establish their method of communication and defining common terms when talking about these things.
A continuous feedback culture requires a change of heart in the way we perceive failure. Instead of treating a mistake as an occasion for blame, we have to view it as a valuable source of data that informs us in trying to work better with one another. When failure is embraced-not stigmatized-people will take risks and therefore be able to innovate.
Feedback needs to be viewed not as a formality but actionable data to help teams get better and align their efforts toward shared business goals. Feedback should be less about what went wrong in the past and more about how we can grow and succeed in the future. Treating feedback as a constant and desired source of information lets teams course-correct in real time and continuously improve collaboration and results.
Focusing on future outcomes, building trust, and making daily feedback normal as a positive driver of change-these are ways workplace ecosystems can be created where both the employees and the businesses prosper together.
Simplify the Performance Management Process
To ruthlessly simplify the performance management process.
Some managers will make a 100k plus hiring decision after a 45-minute interview but agonize endlessly over a performance rating that, in some organizations, spells the difference between a 2% and 4% merit increase. It’s madness.
I’m on a mission to define high performance, negotiate meaningful rewards for reaching that level, and then demonstrate how to get there. I realize performance management is both art and science, but we’re not talking Picasso and particle physics. Clear communication, process rigor, and consistent action drive simplification.
Jenni Stone
HR Director, InfoMC, Inc.
Focus on Igniting Employee Potential
For 2025, my top performance management goal is to shift the focus from “managing performance” to “igniting potential.” I want to create a culture where employees feel empowered to experiment, fail forward, and stretch beyond their comfort zones without the fear of punitive evaluations. Instead of static metrics, I’m championing real-time feedback loops, personalized growth pathways, and team-driven success narratives. The goal is to make performance management a living, breathing process-one that sparks innovation, amplifies purpose, and turns every team member into a co-architect of the organization’s success. It’s not about hitting a target; it’s about creating a workplace where ambition thrives and results follow.
Meghan Calhoun
Co-Founder & Director of Partner Success, Give River
Cultivate Gratitude and Recognition
In 2025, my top performance management goal is to cultivate a culture of gratitude and recognition that drives employee engagement and well-being. At Give River, we’ve leveraged the power of appreciation through our Gratitude feature to boost productivity by up to 22% and reduce absenteeism by 37% among clients who actively engage with the platform.
For instance, by integrating gratitude and recognition seamlessly into daily workflows via platforms like Slack and MS Teams, teams witness a significant boost in morale and retention rates. When employees feel valued and recognized, turnover costs, which can range up to 200% of an annual salary, are drastically minimized.
From my diverse background, including hosting television shows and tackling high-pressure sales, I understand the emotional pulse of varied workplaces. My podcast, “Don’t Just Manifest, Megafest,” further reinforces the centrality of leveraging positive psychological frameworks, ensuring working moms and others strike a joyous balance between personal and professional demands.
Patty Miller
President & Sr. HR/Business Advisor, MillerNet HR & Business Solutions Inc.
Implement Real Employee Growth Metrics
Employee Growth Metrics – Real Ways to Measure:
- Skill Acquisition: Implement a competency-based performance framework where employees self-assess their skills against role-specific benchmarks, supplemented by manager evaluations. Track progress in tools like LinkedIn Learning, Coursera, or internal training platforms.
- Training Completion Rates: Monitor participation in professional development programs and correlate these with improved job performance or internal mobility. For example, if an employee completes a leadership development course, track their subsequent performance reviews or leadership opportunities.
- Career Progression: Use HRIS systems to track role changes, promotions, or project lead assignments. Pair this with data on tenure and performance to identify patterns of growth and success.
Engagement and Alignment Surveys – Real Ways to Measure:
- Pulse Surveys: Deploy brief, monthly or quarterly surveys focusing on specific aspects of engagement, such as the value of feedback or recognition. Tools like Gallup’s Q12 or Qualtrics provide customizable templates for engagement tracking.
- Goal-Tracking Platforms: Use software like Lattice, Workday, or 15Five to align individual goals with organizational objectives. These platforms often provide dashboards to visualize how personal achievements contribute to team or company-wide priorities.
- Recognition Analytics: Track the frequency and impact of recognition using tools like Bonusly or Slack integrations. Measure whether employees who receive regular recognition have higher engagement scores or performance metrics.
Dr. Pramod Solanki
Leadership Coach and Founder, Performance Enablers
Connect Everyone with Organizational Goals
I aspire to make two major changes in the way we manage performance.
1. Connect everyone – directly or indirectly, with the goals that the organization is trying to achieve.
Once we in the top team have agreed on what we plan to accomplish during 2025, we shall ensure the following:
A) Break it down to strategic actions required to achieve them.
B) Ensure clear ownership of those actions.
C) Since there are interdependencies across functions, monthly / quarterly reviews against the set goals will involve all the divisional heads.
D) It’ll be a dynamic plan and corrections in the goals / strategic actions will be made based on the experience / actual achievement for the month or quarter.
In a nutshell, the OKR approach will be followed.
2. The same process will be cascaded across the teams by the respective divisional heads. And more importantly, the managers will be trained and encouraged to keep reinforcing the linkage of the tasks being carried out by grassroot employees with the larger goals of the division and the organization.
Sangeetha Gururaj
Senior VP – People & Talent, Qualitest
Building a Constructive and Tough Feedback Culture
We need to look at leveraging performance management through a sharper lens now. It’s not only about achieving ratings or completion metrics. It’s now a priority to curate a performance-driven culture that a multi-generational workforce is able to connect with and be motivated by. We need to be inclusive and agile enough to suit hybrid work cultures. Managers need to be able to effectively assess and support remote employees.
It is now necessary to build a constructive and tough feedback culture to get the best potential and productivity from team members while ensuring that the right rewards and timely recognition are the foundation. Companies should also be very keen on leveraging the performance management process to assess skill gaps, identify potential future leaders, and create learning and development programs. After all, internal fulfillment through upskilling and grooming future leaders is the most cost-effective; retention of talent is the most efficient hiring!
The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing their insights.
Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?
Write to us at connect@HRSpotlight.com, and our team will help you share your insights.
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