When it comes to processes that employers, managers, and leaders dread, it’s likely to be performance management. And unfortunately, according to Gartner research, 71% of CHROs agree that managers are not fulfilling their role when it comes to performance management. And as a result, employees aren’t getting the type of feedback that they need to perform.

These shortcomings ripple beyond individual performance and can affect organizational success. A May 2024 Gartner survey of 1,456 employees found that only 52% believe performance management is helping their organization achieve its business goals.

What prevents employees from getting the most out of performance management is likely due to a perception of bias or lack of fairness in the process. Surprisingly, employees are starting to view AI as being less biased than humans when it comes to performance decisions. An October 2024 Gartner survey of nearly 3,500 employees found that 87% of employees think that algorithms could give fairer feedback than their managers right now, and an additional Gartner survey from June 2024 found that 58% of employees believe humans are more biased than AI when it comes to making compensation decisions.

Employees are embracing the idea that AI or generative AI (GenAI) can increase, rather than erode, fairness in the workplace. Understandably, a healthy level of skepticism still exists. At Gartner, we........

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