The Evolution of Performance Management over the Last 24-36 Months

Executive Summary
Carpe Diem Global Partners recently spoke with 34 HR Executives in a variety of consumer based industries: food, beverage, and agriculture segments. Businesses were comprised of small and mid-market sized companies generating $50-100MM in revenue and successfully scaled through organic and inorganic growth. We were interested in understanding how performance management evolved in this agile and fast growing market segment.
Our conversations took place between March 2025 to May 2025 by Jeff DeFazio and Jamie Farnham, Managing Partners. We wanted to confirm the leading trends in performance management for businesses in 2025, a shift from traditional, annual performance reviews to a more dynamic, continuous, and employee-centric approach, heavily powered by artificial intelligence (AI), integrated analytics, and real-time feedback systems.
Here’s what we learned…
Shift to Frequent Check-ins and Ongoing Feedback
Organizations have moved away from annual performance reviews to more frequent touchpoints, such as quarterly or monthly check-ins. This change allows for real-time feedback, goal-setting, and employee development discussions, with some companies even holding monthly meetings for hourly employees.
Increased Focus on Behavioral Metrics and Emotional Intelligence:
Performance evaluations are evolving to include a balance between results (50%) and behaviors (50%), with greater emphasis on emotional intelligence (EQ), self-awareness, and employee engagement. This shift aligns with the growing importance of soft skills in the workplace.
Integration of Analytics and KPI-Driven Assessments:
Performance management has become more data-driven, utilizing Key Performance Indicators (KPIs) and analytics to reduce subjectivity. This approach emphasizes true performance over tenure or likability and ties metrics directly to outcomes like bonuses and organizational success.
Personalized Development Plans and Succession Planning:
Companies are focusing on individual development plans, skill enhancement, and succession planning. Goals are increasingly tied to skill development rather than just job responsibilities, ensuring employees have room to grow and align with organizational objectives.
Adoption of New Tools and Simplified Processes:
To streamline performance management, organizations are implementing new tools and systems, such as HRIS platforms, and simplifying legacy practices. This includes using visual tools like red-yellow-green progress tracking, conversational questions, and reducing reliance on traditional rating systems.

Jeff DeFazio
Managing Partner

These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work leading Board, CEO, CXO, and CHRO executive search engagements for public and private multinational companies. For deeper, custom insights, contact Jeff DeFazio at Jdefazio@carpediempartners.com.








