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Performance Management Is Changing. Are You Ready?

June 4, 2025 Denise Liebetrau

In the next three years, the way we assess performance will be fundamentally redefined by one major force: AI integration in everyday work.

As AI becomes a baseline expectation, not a bonus skill, we must evolve how we define, measure, and reward performance.

Historically, performance ratings emphasized behaviors, results, and goals. But now? The “how” -- which includes leveraging technology to amplify impact -- will be just as important as the “what.”

How will future performance evaluations shift?

1 - Integrated Skills Assessment: Evaluating both human expertise and how effectively employees use AI tools (e.g., ChatGPT, Copilot, Replit, Claude, etc.) to improve work quality, efficiency, and innovation.

2 - Job-Based AI Expectations: Different jobs require different levels of AI fluency. A marketer using AI to generate customer insights is different from a software engineer automating testing scripts. Leaders must tailor benchmarks.

3 - Rewarding Adaptability: The speed at which employees adapt to new tools and workflows will be a key differentiator in performance.

4 - Performance Calibration Will Evolve: Managers will need to assess not only results but how AI helped achieve it. Was it used ethically? Was an employee’s judgment applied appropriately?

Future-Focused Performance Rating Scale:

  1. Not Meeting Expectations

    • Struggles to complete job responsibilities, avoids using new tools, and resists tech-enabled workflows.

    • Example: Continues using outdated manual processes despite available AI support; missing deadlines and quality standards.

  2. Partially Meeting Expectations

    • Some responsibilities met, but inconsistent application of AI tools limits impact. Learning curve is still steep.

    • Example: Tries using AI but produces work that needs frequent rework; hesitant to explore new tech features.

  3. Meeting Expectations

    • Meets job goals, uses AI/tech tools appropriately to support tasks, and demonstrates foundational digital agility.

    • Example: Uses AI to draft content or summarize reports; integrates output with sound judgment and team input.

  4. Exceeds Expectations

    • Proactively uses AI and digital tools to improve quality and productivity; mentors others in effective use.

    • Example: Automates data workflows, reduces turnaround time by 30%, and helps peers adopt similar approaches.

  5. Consistently Exceeds Expectations

    • Expertly integrates AI into work to drive innovation, transformation, or measurable business impact.

    • Example: Creates AI-driven customer engagement model that increases conversion rates; pilots new tools for cross-functional use.

As tech becomes the partner for most jobs, we must redefine excellence. Are your performance frameworks ready for that shift?

#PerformanceManagement #Compensation #HR #HumanResources #AI #FutureOfWork #TotalRewards #SHRM #WorldatWork #CompensationConsultant #Pay #PerformanceFeedback

← AI Agents Are Coming for Your HR To-Do List. And That’s a Good Thing.The Compensation Profession Is Changing. Are You Ready? →

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