Less than one-fifth of HR leaders believe that performance management is effective at achieving its primary objective, according to Gartner, Inc. Though companies have been prioritizing performance management improvements for years, 81% of HR leaders are still making changes and experimenting with their organization’s performance management efforts.

Due to the economic uncertainty across most industries and markets, 92% of HR leaders are prioritizing budgeting and cost optimization initiatives, according to a benchmarking survey by Gartner, Inc. While HR leaders face increasing pressure to drive business value and manage costs, only 20% consider how HR cost optimization efforts can contribute to the organizations’ cost savings overall.

Aligning a company’s workforce with the desired culture can improve performance against revenue goals by 9 percent, according to a new report from, Gartner Inc. However, only 31 percent of human resources (HR) leaders believe their organizations have the necessary culture to drive performance.

Most organizations are undergoing a digital transformation that directly impacts how they do business, yet 70 percent of employees have not mastered the skills they need for their jobs today, and 80 percent of employees do not have the skills needed for their current and future roles, according to Gartner, Inc.