Less than 40% of workers say performance reviews are consistent

New data from ELMO Software shows retail and hospitality are lagging behind

• Only 38% of Australian employees say their organisation has a formal, consistent performance management process
• Industry divide: healthcare and education (both 46%) are ahead, while retail (11%) and hospitality (17%) are way behind
• Only two in five (42%) workers say they receive helpful feedback often enough to support their improvement and motivation 
• One in ten (9%) say no formal process exists at all, while a further 8% are unsure

9 September 2025 – New research from ELMO Software reveals wide disparities in performance management practices across Australian workplaces and industries, prompting questions about how effectively businesses are driving productivity.

The ELMO Employee Sentiment Index (ESI), covering April to June 2025, surveyed more than 1,000 Australian employees to gauge workforce sentiment around job security, wellbeing, and wellbeing processes.

Less than two in five employees (38%) say their organisation has a consistent, formal review process with clear criteria and regular feedback. But the numbers vary dramatically across industries: nearly half of healthcare (46%) and education (46%) workers report having a process in place, compared with only 11% in retail and 17% in hospitality.

Patchy processes

The research paints a mixed picture of performance management practices overall. Three in ten employees (29%) say the process is only partly structured, with guidelines applied inconsistently. Nearly one in six (15%) describe it as mostly informal, relying on ad-hoc conversations with little documentation. More than one in ten (9%) say no formal process exists at all, while 8% are unsure whether one is in place.

At the same time, more than seven in ten employees (72%) believe their performance is assessed using transparent and fair criteria, but only one in four (27%) strongly agree.

“It’s encouraging that so many employees feel their performance is judged fairly, but when structures are patchy, trust can erode,” said ELMO CEO, Joseph Lyons. “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.”

Feedback falling short

The study also highlights gaps in feedback. Almost one in five employees (18%) say they rarely receive helpful feedback, while 35% receive it only occasionally. Two in five (42%) report getting constructive feedback often enough to support improvement and motivation.

Generational gaps emerge too: only 12% of Gen Z and 16% of Millennials say they rarely or never receive helpful feedback. In contrast, the numbers climb among older workers, with 24% of Gen X and 29% of Baby Boomers reporting 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.”

Productivity and motivation at stake

While employees remain broadly engaged – four in five (81%) say their goals and expectations are clear, and three in four (76%) feel motivated in their role – there are still notable gaps in how organisations manage performance. ELMO’s 2025 HR Industry Benchmark Report found boosting productivity is the top priority for HR leaders this year, with a lack of clarity around goals and performance identified as the biggest barrier.

Lyons is confident technology can help close these gaps, but only when paired with strong human connection.

“As we move rapidly into an AI-powered world, efficiency gains will continue, but they’re only part of the story,” he said. “AI can unlock people insights, giving leaders the space to focus on constructive conversations, engagement, and recognition. The organisations that balance technology and human connection will set themselves apart.”