Create a Better Performance Review Cycle: Goal-Setting and Feedback That Drive Growth

In a recent survey by the Association for Talent Development (ATD), 90% of organizations expect employees to be involved in their own goals. Yet only 28% of those organizations train employees on how to set goals. 

This guide is for HR leaders who want to strengthen the performance review cycle at its core by raising the quality of goals, feedback and manager support.

Why Clear Goals Matter More Than You Think

Every HR professional has seen the fallout of unclear expectations: frustrated employees, managers unsure how to evaluate performance, teams operating with different assumptions and, ultimately, missed opportunities for growth. That disconnect is widespread. In Betterworks’ 2025 State of Performance Management report, more than half of employees (54%) said they don’t feel their performance is being enabled by managers through structured goal-setting, regular feedback or meaningful career conversations.

The truth is simple: people can’t deliver what they don’t fully understand. And when clarity is missing, organizations tend to default to heavier interventions instead of better conversations. ATD research found only 15% of survey respondents see performance improvement plans as very effective, which points to a common reality: the challenge often isn’t the idea of performance management, it’s inconsistent execution.

Managers can set goals, but HR leaders raise the standard for what a good goal looks like. When expectations are clear, performance becomes easier to measure, recognition becomes more meaningful and development shifts into something more strategic.

How to Set Goals That Actually Drive Performance

Almost every organization relies on alignment, from departmental objectives to individual development goals. Setting effective goals means balancing two parallel needs: clarity and adaptability.

Consider these core principles when setting goals:

1. Anchor goals in outcomes, not tasks

Tasks describe what someone does. Outcomes describe why it matters. Good managers and leaders should orient people toward the business purpose behind their work.

2. Focus on what’s measurable and observable

If a goal can’t be clearly evaluated, it becomes subjective. Objective goals reflect fairness, transparency and alignment.

3. Make goals co-created

Employees who help define their goals tend to show higher commitment and follow-through. This shifts the conversation from compliance to shared ownership.

4. Embed development into performance

Strong goals don’t just drive business results. They shape the skills and leadership capacity an employee is building for the future.

5. Revisit goals often

One of the most common management missteps is treating goal-setting as a once-a-year exercise. When HR leaders help managers view goals as living documents, shifting priorities can realign direction. This approach transforms goal-setting from a procedural requirement into a tactical leadership tool.

The Feedback Gap: Why Conversations Break Down

HR often sees the consequences of delayed feedback first: disengagement, surprise at review time and avoidable performance plans. The gap isn’t in intent; it’s in habits and skills. 

Even high-performing employees can fear feedback conversations, whether giving or receiving. The fear usually stems from the same place: the assumption that feedback is corrective rather than constructive.

Strong HR leaders treat feedback as information: clear, timely signals that help someone adjust, grow and deliver. This creates a tremendous opportunity for HR leaders to help managers normalize feedback as part of everyday dialogue and view it as a tool for growth.

How to Give Feedback Like a Leader, Not a Corrector

HR leaders don’t need to deliver every feedback conversation, but they can set expectations for frequency, quality and accountability and provide managers with tools that reduce fear and increase consistency. 

Providing effective feedback strengthens trust, motivation and psychological safety in employees and teams. Gallup data show that 80% of employees who report receiving meaningful feedback in the past week are fully engaged. 

Managers who do this well rely on a few foundational practices.

1. Focus on behavior and impact

Employees need to understand what they did, how it affected others and why it matters. This is how you move feedback from emotional to actionable.

2. Ground the conversation in shared expectations

If goals are clear, feedback becomes easier. Without shared expectations, feedback feels subjective.

3. Make feedback timely and specific

Waiting months to address an issue sends a message that it wasn’t important.

Addressing it quickly shows support and commitment to growth.

4. Pair accountability with partnership

Employees want managers who hold them to high standards and genuinely invest in their success.

Both matter. Neither works in isolation.

5. Ask questions that build self-awareness

Strong people leaders don’t speak at their teams. They speak with them.

Questions like “How do you think that went?” or “What would you do differently next time?” develop internal leadership, not dependency.

Coaching, Mentoring and Leading: Knowing the Difference

Many professionals use these terms interchangeably, but emerging HR leaders must know the distinctions:

• Mentoring offers guidance based on experience.
• Coaching unlocks performance by helping people think differently, not by giving answers.
• Leading sets direction, removes barriers and aligns people to a shared vision.

As a leader, you should expect to use all three. But knowing when to coach, when to mentor and when to lead is what elevates your influence and builds trust.
For example:

When an employee is stuck because they lack confidence → coach.

When they’re in the process of learning a new skill you’ve already mastered → mentor.

When an employee or team needs clarity on priorities → lead.

Effective leaders blend these roles fluidly, matching their approach to the moment.

Creating a Culture Where Motivation Thrives

Goal-setting and feedback shape team and organizational culture. When employees know what success looks like and trust that their managers care enough to help them improve, motivation becomes self-sustaining.

A strong performance culture is built on:

• Transparency
• Consistency
• Psychological safety
• Recognition grounded in real impact
• Opportunities for growth

At the leadership level, HR impact isn’t measured by how well the process is documented. It’s measured by how effectively managers use it and whether employees perceive it as fair and useful. When you raise the quality of goals and feedback across teams, you’re shaping performance culture, not just supporting it.

What This Means for Your Career

As organizations evolve, the HR leaders who stand out share one distinguishing trait: they elevate performance through clarity and conversation.

Strengthening your ability to:

• set goals that drive meaningful outcomes
• give feedback that improves performance
• coach employees toward growth
• develop talent with intention
• motivate teams through trust and alignment

These skills demonstrate leadership readiness and translate directly to the management roles many HR professionals are preparing to pursue.

Build HR Leadership Skills With Villanova University

If you’re ready to move from HR support to HR leadership, performance management is a clear place to build influence because it touches trust, retention and development at scale. Villanova’s College of Professional Studies helps you deepen your leadership capacity, coaching and talent development skills. 

Explore our 100% online professional education offerings taught by industry experts so you can build real capability without stepping away from your current role.

• Human Resources Certificate Program and courses, where you’ll develop the strategic HR management capabilities organizations expect from future leaders with courses to choose from including: HR Professional, Advanced Human Resources, Strategic Leadership, Building and Leading Highly Effective Teams and many more.

• SHRM Certification Prep+, which equips you with the advanced HR frameworks and leadership insights needed to pursue SHRM-CP or SHRM-SCP certification with confidence.

Learn more about our programs or connect with an enrollment counselor to help answer any questions.