44% of the UK workforce now works from home for all or some of their contracted hours. This is a huge increase from just 12% in 2019.*

Additionally, five years ago, the tech-native, work-life-balance-seeking Gen Z had barely entered the workforce – now they make up 27%** of the UK workforce. Their number in the workplace has now overtaken the Baby Boomers who, in contrast to Gen Z, are used to a culture of competition, hierarchy and ‘face-time.’***

These seismic changes, alongside rapid advancements in workplace technology means employees and employers alike have had to adapt to new ways of working. How organisations address Performance Management has had to evolve enormously to reflect this changing work environment.

Performance management software, regular one-to-ones and 360 feedback are all becoming standard aspects of an organisation’s approach, but what more can we expect to see as we look ahead to 2025?  Read on for our performance management trends predictions for the next 12 months and beyond.

Data-driven performance management

According to a study by Gartner, organisations that use data-driven talent management strategies are 21% more likely to outperform their competitors. Data-driven performance management uses quantifiable metrics to measure against staff performance, both actual and desired, to offer measurable performance outcomes.

As more and more organisations turn to performance management software, data-driven performance management is becoming increasingly advanced and is set to become a popular and highly effective approach.

AI

AI can be used to ensure evaluation of performance is more objective than subjective based on data analysis rather than relying on manager and colleague opinion.

AI facilitates real-time feedback mechanisms, allowing employees to receive feedback, take relevant action to address feedback, and re-assess as soon as action is taken. This continuous feedback encourages staff to take responsibility for their own development.

AI algorithms can also help create personalised development plans, set meaningful objectives, write comprehensive review documents, the possibilities are endless…

Individual objectives aligned with organisational objectives

People want to feel they make a difference.  They want to feel part of something.  Communicating a company’s ambitions is only motivational for the individual if they understand how they contribute.  Aligning individual objectives to the business objectives and explaining how they are aligned, makes staff recognise the value of their work in achieving those objectives.

Continuous Feedback

Although formal annual appraisals still have their place, organisations have realised that more regular, informal communication and feedback is a more effective way to improve performance. Regular informal catch-ups between manager and team member offer more approachable performance tracking. Software such as SkillGate’s Check-ins tool, are now available to support team leaders in the formal administration aspect of these informal meetings.

Wellbeing is on the agenda

A holistic approach to performance management is crucial to meet the needs of today’s workforce. With a huge rise in work-related stress, burnout and anxiety over recent years, it is in an organisation’s interest to prioritise staff wellbeing as part of their performance management programme.

Talking of trends for this year, 2025 will see the launch of SkillGate’s new Success Targets performance management system.  Built with continuous feedback and development at its core, this new AI-driven system will revolutionise the way your organisation approaches performance management.

Success Targets will be the solution your organisation needs to meet the changing demands of today’s workplace… watch this space!

*Characteristics of homeworkers, Great Britain – Office for National Statistics

**Unlocking the Potential of Multigenerational · Major Players

***How retiring Baby Boomers are affecting the workplace | Whitepaper