Watson Wyatt released a study today which shows that while employers are leveraging best practices when designing their performance management programs, they are falling short in the implementation of those programs.

From the study’s summary:

In designing their performance management programs, most employers have adopted best practices — including providing a formal yearly review (98 percent), helping poor performers improve (96 percent) and offering coaching and feedback (91 percent) — but they have been less successful in implementing them. For example, while 92 percent of programs are designed to link pay to performance, only 79 percent of employers say that managers at their organization are moderately or greatly effective at it. Employees see even more room for improvement with only 52 percent indicating that their managers tie pay to performance.

The best program in the world can’t reach it’s potential if it’s not intelligently put into place. It’s software’s achilles heel and another reason why you’ve got to be really careful when choosing a performance management partner. The best package will not mean anything if people don’t understand it, have a hard time using it, or it simply doesn’t work right. At SuccessFactors, we have an entire professional services team dedicated only to implementing our applications and ensuring our customer’s success.

One suggested remedy from Watson Wyatt: training.

Only 36 percent of organizations have a formal training program to enhance managers’ ability to manage rewards. However, managers at companies that offer such a program are more effective at providing coaching and feedback, providing formal periodic performance discussions and helping poor performers improve.