New research by software provider ELMO reveals that only 2 in 5 Australian workers believe their workplaces maintain consistent and formal performance review processes. The Employee Sentiment Index (ESI) conducted between April and June 2025 surveyed over 1,000 employees on aspects like job security and wellbeing practices, highlighting significant disparities in performance management practices across various industries.
ELMO’s findings indicate that less than 40% of employees feel their workplaces have structured review processes with clear criteria and regular feedback. Interestingly, the study shows discrepancies across sectors, with healthcare and education industries having a higher percentage of employees acknowledging formal processes compared to retail.
The survey paints a complex picture of performance management practices, with around 30% of employees stating that the process is only partially structured, while 15% describe it as informal, relying on sporadic conversations with minimal documentation. Moreover, nearly 1 in 10 employees report the absence of any formal review process, raising concerns about the effectiveness of businesses in driving productivity.
While 72% of employees believe their performance is evaluated fairly, only a quarter strongly agree. ELMO’s CEO, Joseph Lyons, emphasized the importance of structured performance reviews in fostering trust within organizations, noting that clear feedback cycles are essential for employee support and innovation.
Generational differences also play a role in feedback reception, with younger employees being more likely to receive helpful feedback compared to Gen X and Baby Boomers. Lyons highlighted the need for tailored approaches to feedback to harness the diverse perspectives and potential for innovation that age-diverse workplaces offer.
Despite the challenges in performance management, the survey found that the majority of employees feel motivated in their roles and have clear expectations set by their organizations. This positive sentiment suggests that despite the inconsistencies in review processes, employees remain engaged in their work.
Jerome Doraisamy, managing editor at Momentum Media, stressed the importance of effective performance management in driving organizational success. He emphasized the need for businesses to establish robust structures for performance reviews to ensure employee satisfaction and productivity.
In conclusion, the research underscores the critical role of consistent and formal performance management processes in fostering trust, engagement, and productivity within organizations. As businesses navigate the evolving landscape of work dynamics, prioritizing structured feedback mechanisms can be a key driver of success in the ever-changing workplace environment.
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