Why government needs to rethink performance management

Recruitment is challenging, retention even more so, and budgets remain under pressure. For many public sector organisations, the question is simple: how do you compete for talent when you cannot always compete on pay? The answer lies in creating an employee experience that people genuinely value. One of the most effective levers for achieving this is performance management.

Annual appraisals: why they no longer work

Traditional annual reviews are increasingly seen as outdated. They are backward-looking, often rushed, and for many employees, the only time they receive feedback all year. If your process is not helping people grow, it is not helping your organisation succeed.

Continuous performance management: a better approach

Forward-thinking organisations are moving to continuous performance management – and for good reason. Instead of a once-a-year tick-box exercise, this approach focuses on regular, meaningful conversations, agile goal-setting, and real-time feedback.

Key elements include:

• Agile goals that adapt as priorities shift.
• Frequent feedback that is authentic and actionable.
• Coaching-style conversations that focus on development, not just delivery.
• Continuous engagement checks to identify issues early and act quickly.

This is not just theory. Homes England and Yorkshire Housing are already embracing modern performance practices to boost engagement and retention. Yorkshire Housing, for example, has built a culture around trust, inclusion, and wellbeing – and it is paying off in employee satisfaction and loyalty.

Why this matters for government

Public sector organisations face unique challenges. Pay freezes, return-to-office mandates, and rising workloads are making it harder to hold onto skilled staff. If you cannot compete on salary, you need to compete on experience.

Continuous performance management helps you do exactly that. It creates a culture where employees feel valued, supported, and clear on how their work contributes to the bigger picture. When people feel connected and recognised, they are far less likely to leave.

Technology as an enabler

Culture change is essential, but technology can make it easier. This is where OneAdvanced’s Performance & Talent solution comes in. It is designed to help public sector organisations move beyond annual appraisals and embrace a continuous model without adding unnecessary complexity.

Key features include:

• Simple feedback tools so employees can give and receive feedback across the organisation.
• Goal alignment that links personal objectives to organisational priorities.
• Accessibility features that meet WCAG 2.2 standards – including dyslexia and low-vision views.
• AI-powered support to help employees articulate feedback quickly and confidently (with humans always in the loop).

The impact is clear. Data from our platform shows that top performers set and complete more goals, give and receive more feedback, and have more conversations with their managers. Meanwhile, employees who leave are twice as likely not to have set any goals or received feedback – a direct link between engagement and retention.

The evidence behind the shift

Research supports this move. McKinsey found that more than half of organisations say their (non-continuous) performance management systems have no positive effect on performance, while CIPD data shows that employees with systematic performance management are far more likely to rate their own performance positively than those with none at all. The British Council also reports that companies reviewing goals monthly perform better financially than those that do so annually.

The bottom line

Retaining talent in government is not easy – but it is possible. By moving to continuous performance management, you can create an environment where people want to stay and grow. With the right tools and support, the shift does not have to be daunting.

If you are ready to explore how this could work in your organisation, take a look at OneAdvanced’s Performance & Talent solution. It is helping public sector bodies across the UK modernise performance management and unlock the full potential of their workforce.

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Discover more

Don’t miss our free, on demand presentation: Empower your people through digital innovation, where we explore the power of Performance and Talent for public sector organisations.