More than nine out of 10 employers believe performance management is a major organisational issue, but less than half have a clear strategy to tackle it.
According to research published by IRS Employment Review, performance management is recognised as a fundamental part of the way organisations function, but only a quarter involve HR in the goal-setting process, with the majority relying instead on the board and management.
The most common method of communicating performance goals is a meeting between manager and subordinate.
IRS Employment Review managing editor, Mark Crail, said the biggest surprise in the survey was the low standing of HR professionals in this area.
"If HR professionals are going to help deliver their organisations’ strategic goals, it makes no sense to exclude them from setting those goals in the first place.
"Performance management is all about people - the organisation’s most valuable asset - so it makes sense to ensure the human capital experts are able to contribute to this process," he said.