Formal performance evaluations are insufficient in numerous sectors across Australia.

New data reveals that fewer than two in five Australian employees report their organisation employs a formal and consistent performance management process, with significant disparities across various industry sectors. Research conducted by ELMO Software, based on responses from over 1,000 Australian employees surveyed by YouGov, indicates that only 38% of respondents confirmed the presence of a structured review process featuring clear criteria and regular feedback. The findings highlight notable differences between industries, with 46% of employees in the healthcare and education sectors acknowledging formal processes, in stark contrast to just 11% in retail and 17% in hospitality.

The disparity in performance management practices suggests that certain Australian industries are lagging behind others in implementing structured review systems. Among retail employees, only 11% reported having a formal, consistent process, while the figure stands at 17% for hospitality workers. The research, conducted from April to June 2025 and tracked in the ELMO Employee Sentiment Index, presents an uneven landscape nationwide. Approximately 29% of employees described their workplace performance management as only partly structured, with inconsistent guidelines. Additionally, 15% indicated that their organisations rely on informal methods, while 9% stated there is no formal performance process at all. Despite these inconsistencies, 72% of respondents believe their performance is assessed using transparent and fair criteria, although only 27% strongly agree, highlighting a gap between perceived fairness and the reliability of the structures in place. 

Categories: Performance Management Processes, Industry Disparities, Feedback Effectiveness 

Tags: Performance Management, Australian Employees, Formal Process, Industry Sectors, Feedback, Healthcare, Education, Retail, Hospitality, Transparency