Just 2 in 5 workers say performance reviews are consistent

New research shows how few Australian employees say their workplaces have formal, consistent performance management processes.

Software provider ELMO has released its Employee Sentiment Index (ESI), covering April to June 2025, which surveyed more than 1,000 Australian employees about workforce sentiment around job security, wellbeing, and wellbeing processes.

According to the findings, there are “wide disparities” in performance management practices across Australian workplaces and industries, prompting questions about how effectively businesses are driving productivity.

ELMO found that less than two in five (38 per cent) of employees say that their workplaces have consistent, formal review processes, with clear criteria and regular feedback.

Interestingly, however, such sentiments vary across industries – less than half of workers in healthcare and education (46 per cent respectively) can point to such processes, compared to just 11 per cent in retail.

The findings offer a mixed picture of performance management practices, ELMO surmised: three in 10 employees (29 per cent) say that the process is only partly structured, with guidelines applied inconsistently, while nearly one in six (15 per cent) describe it as mostly informal, relying on ad-hoc conversations with little documentation, and less than one in 10 (nine per cent) say no formal process exists at all, while 8 per cent are unsure whether one is in place.

Additionally, just over seven in 10 employees (72 per cent) believe their performance is assessed using transparent and fair criteria, but only one in four (27 per cent) strongly agree.

Speaking about the findings, ELMO chief executive Joseph Lyons said it is encouraging that so many employees feel their performance is judged fairly, but added that “when structures are patchy, trust can erode”.

“Our own data shows every single ELMO employee has completed a structured performance review process in the past year; not just because we have the right tech, but because our leaders recognise the value it brings,” he said.

There are also, ELMO pointed out, generational divides at play: just 12 per cent of Gen Z and 16 per cent of Millennials say they rarely or never receive helpful feedback, compared with 24 per cent of Gen X and 29 per cent of Baby Boomers reporting that useful feedback is lacking.

“Our workplaces are more age-diverse than ever, bringing opportunities for diverse thinking and innovation,” Lyons said.

“But that potential is realised only if people feel supported through clear feedback cycles and recognition. Strong processes are a great start, but leaders must tailor their approach to make feedback impactful.”

Positively, employees remain broadly engaged – four in five (81 per cent) say their goals and expectations are clear, and three in four (76 per cent) feel motivated in their role, ELMO found.