2025 State of Construction Performance Management
Uncover the performance management strategies driving real results across 415+ construction companies. The 2025 State of Construction Performance Management report by PerformYard analyzes emerging trends, proven best practices, and measurable organizational impact in construction.
Consistent Systems. Focused Questions. Effective Management.
Successful construction performance management is evidence-based, not intuition-based. Below are three data points that show how top-performing construction companies separate themselves from the rest, revealing exactly what moves the needle on engagement, goal achievement, and manager effectiveness in field-based work environments.
Annual Growth
Construction companies using PerformYard performance management software grow 27% year-over-year in their first 4 years with the platform. When construction teams work with clearly defined performance goals, supported by regular performance assessments, they achieve more and contribute to better operational efficiency.
Optimal Review Structure
Construction companies achieve 79% review completion rates with 10-15 questions per review (including 3-5 open-ended questions). This structure encourages thoughtful answers while recognizing construction teams' preference for concise feedback over lengthy written responses.
Manager Capacity Impact
Construction companies with managers having fewer than 5 direct reports achieve the highest goal completion rates and eNPS scores. Smaller teams allow for more frequent check-ins and instant feedback – key ingredients for good performance in project-based work.
The Right Review Format Boosts Construction Participation
Construction performance review completion rates hit 80% with 10-15 questions per review. Short forms may often feel less useful to construction workers. PerformYard data shows reviews with 10-15 questions (including 3-5 longer, open-ended questions) work best for construction teams and improve participation in the complete performance management cycle.
Focused Goals = Higher Achievement in Construction
Construction employees achieve optimal performance with 5-10 goals per year, not 20-30 like other industries. Construction team members with focused goal-setting reach their full potential better than those with numerous small objectives. This approach aligns with project timelines and business objectives, reflecting the project-based nature of construction work.
Performance Management Pays Off Over Time in Construction
Construction companies see compounding performance management benefits over 4 years: 31% engagement growth, 33% faster review completion, and 29% higher goal achievement rates. Year-by-year improvements show structured performance processes build organizational capability in construction's demanding environment.
The PerformYard Impact on Construction Companies
Traditional performance systems fail in construction's project-based, field-focused environment. With PerformYard, construction companies achieve higher goal completion, better employee satisfaction, and 27% annual growth – helping them attract and retain talent in a competitive construction labor market.
Key Construction Performance Insights
Construction performance management research from 415+ companies reveals industry-specific patterns that differ significantly from other sectors.
10-15 questions
Construction review completion rates hit 80% when reviews contain 10-15 questions, balancing thoroughness with field worker practicality.
≤5 questions
Review completion rates drop to 64% when construction reviews contain 5 or fewer questions, proving too brief for meaningful feedback.
3-5 text questions
Highest completion rates occur with 3-5 long-text questions per construction review, reflecting the industry's preference for concise written feedback.
5-10 goals
Construction employees with 5-10 annual goals achieve optimal completion rates, unlike other industries where 20-30 goals work better due to project-based work requirements.
Frequently Asked Questions
Get answer to common questions about our 2025 State of Performance Management Report.
How was the data for this construction report collected?
The construction performance management data comes from over 415 construction companies of all sizes using PerformYard. It includes anonymous information on growth, turnover, and performance practices, showing construction-specific patterns based on company tenure with the platform.
How often is this report updated?
The State of Construction Performance Management report updates annually to share the latest construction industry trends and performance management innovations. This helps construction teams stay current with evidence-based practices.
Can I share this report with my team?
Yes, construction companies can share the State of Construction Performance Management report with their teams. Download the full report and share it with your construction team to improve performance management practices across projects.
How can I implement these construction findings in my organization?
Start by implementing 1-2 construction-specific changes: optimize review formats to 10-15 questions for field teams or set 5-10 project-aligned goals per employee. Test small changes with pilot projects and track results over time for measurable improvements.
How do I get started with PerformYard for construction?
Getting started with construction performance management software is straightforward. The best way to see how PerformYard works for construction teams is through a live demonstration. Sign up for a free demo to explore construction-specific features and see how it streamlines reviews and boosts engagement across construction projects.