In the spotlight: Performance management that puts people first

McKinsey (May 15, 2024) "In the spotlight: Performance management that puts people first" finds companies that focus on their people's performance are 4.2 times more likely to outperform peers, realising an average 30% higher revenue growth and attrition five percentage points lower. It recommends a fit-for-purpose PM design built around four areas: goal setting, performance reviews, ongoing development and rewards. The article positions generative AI as a tool to support specific PM elements — aggregating input across sources, drafting performance reviews and communications — to free managers for coaching and personal feedback. Direct read-out for SEA mid-market boards approving HR transformations under cost pressure.