Performance reviews from skilled managers crucial for employee motivation

However, nearly a quarter said that managers lacked the necessary skills for effective feedback.

A survey by McKinsey & Company revealed that employees are more motivated by performance reviews from skilled managers. However, nearly a quarter (25%) reported that managers or feedback providers lacked the necessary skills for effective reviews.

This issue is more pronounced in large companies with 10,000 to 50,000 employees, where 34% cited insufficient skills amongst managers.

“Large companies in particular could designate more power and resources to middle managers—traditionally the most passionate and capable coaches within an organisation,” the report said.

Meanwhile, only 21% of respondents who did not have regular development conversations felt motivated by their companies’ performance management, compared to 77% of those who received continuous feedback.

To address these gaps, companies are urged to equip managers with tools such as generative AI (GenAI) to facilitate better feedback delivery.

“For example, by synthesising insights from the colleagues who work closely with an employee,” the report added.

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