General
Upscend Team
-December 29, 2025
9 min read
This article explains why performance management problems persist and outlines modern solutions—frequent check-ins, project-based assessments, competency rubrics, and blended OKR/KPI use. It gives HR a pragmatic roadmap (diagnose, prototype, measure, scale), a 6–9 month checklist, and common pitfalls to avoid when rolling out continuous feedback.
Performance management problems remain a top concern for HR leaders because legacy systems and one-off reviews fail to connect behavior with outcomes. In our experience, organizations that treat performance as an annual checkbox see lower engagement, recurring employee performance issues, and a widening gap between expectations and delivery. This article analyzes common failure modes, presents practical frameworks, and offers step-by-step interventions HR teams can deploy to modernize appraisal practices and reduce variability in contribution.
Several structural and human factors create chronic performance management problems. First, annual reviews create memory bias: managers remember peaks and recent events rather than consistent performance. Second, objectives are often vague, producing uncertainty about priorities. Third, calibration is infrequent, so ratings drift and inequity accumulate. A pattern we've noticed is that poorly designed systems amplify low-performing behaviors by failing to correct them early.
Addressing these root causes requires reframing performance as continuous, contextual, and development-oriented rather than episodic and punitive. Industry research shows companies that adopt ongoing measurement and development cycles report higher retention and productivity. The next sections outline alternatives and practical fixes HR can implement.
Traditional reviews are being replaced with models that emphasize ongoing alignment, coaching, and objective tracking. Popular alternatives include frequent check-ins, project-based assessments, and competency-based reviews. Each alternative addresses specific employee performance issues—for example, check-ins reduce surprise feedback and project assessments focus on outcomes, not personality.
Switching from annual reviews to bi-weekly or monthly one-on-ones helps managers spot problems early. These sessions are best used for quick alignment, skill coaching, and micro-goal setting. We recommend structured agendas with a continuous feedback component to capture progress and barriers. Make check-ins lightweight and action-oriented to avoid administrative burden.
Assessing performance by deliverable and competency reduces subjectivity. Use short assessment rubrics tied to observable behaviors (communication, technical execution, collaboration). When teams assess deliverables, the focus shifts from fixed ratings to development and impact, mitigating many common performance management problems.
When asked how to fix performance management problems, HR leaders need a pragmatic roadmap. Below is a concise, implementable plan we've used across organizations of varied sizes.
Key to success is transparency: publish the rubric, share calibration notes, and create a feedback loop for continuous improvement. Use short experiments and clear metrics to avoid overengineering solutions to long-standing performance management problems.
Choosing between OKRs and KPIs matters for solving specific performance management problems. OKRs (Objectives and Key Results) encourage ambition and stretch goals; KPIs (Key Performance Indicators) track steady-state performance and operational health. A combined model often works best: use KPIs for reliability and OKRs for strategic, time-bound initiatives.
Use OKRs when you need directional change, innovation, or cross-functional alignment. OKRs are ideal for short cycles (quarterly) and when behavior change requires risk-taking. Track progress frequently and celebrate partial wins to sustain momentum.
KPIs are essential for business continuity—revenue per client, SLA compliance, quality rates. KPIs anchor compensation and performance expectations where predictability matters. In our experience, failure to clearly separate OKRs and KPIs is a root cause of many performance management problems, as employees receive mixed signals about priorities.
Continuous feedback is not a silver bullet, but it significantly reduces surprises and accelerates development when implemented correctly. We have found that embedding feedback into workflows—via brief asynchronous notes, peer recognition, and manager summaries—creates a culture where improvements are incremental and timely.
Practical technologies are emerging to support this shift. Modern LMS platforms — Upscend — are evolving to support AI-powered analytics and personalized learning journeys based on competency data, not just completions. This illustrates how learning and feedback systems can integrate with performance signals to create closed-loop development paths without adding administrative friction.
Implementing modern performance systems requires attention to people, process, and technology. Below are concrete steps and common mistakes to avoid when addressing performance management problems.
Follow this checklist over a 6–9 month timeline to reduce disruption and build sustained adoption.
Watch for these traps that commonly derail reform efforts:
When organizations address these pitfalls, they reduce variance in ratings, increase perceived fairness, and see measurable improvements in retention of high performers. Learning teams should treat the rollout as an iterative product launch, using small experiments to validate assumptions about manager behavior and employee motivation.
Performance management problems are multifaceted but solvable. The shift from episodic reviews to continuous, outcome-focused systems reduces bias, accelerates development, and aligns efforts to business strategy. Use the diagnostic steps, pilot frameworks, and blended OKR/KPI approach described above to create a resilient performance system.
Start small: pilot frequent check-ins, define a clean rubric, and measure the impact on engagement and outcomes. Remember that technology and training must be paired—tools enable change, but managers and leaders create it. With a disciplined approach, HR can transform performance management from a compliance task into a strategic capability.
Next step: Choose one team to pilot a 90-day continuous feedback cycle, apply the checklist above, and measure three indicators: feedback frequency, rating variance, and voluntary turnover. Use results to iterate and scale.
