Understanding Workforce Performance: The 20-60-20 Rule
In most businesses, performance distribution among employees follows a surprisingly consistent pattern. Whether you're in professional services, t...
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In most businesses, performance distribution among employees follows a surprisingly consistent pattern. Whether you're in professional services, technology, finance, or manufacturing, the spread tends to cluster around a model often dubbed the 20-60-20 rule. It’s a useful shorthand for understanding performance dynamics at scale.
This group often drives a disproportionate amount of impact. High performers are your rainmakers, strategic thinkers, go-to problem solvers—individuals who consistently exceed expectations and deliver results. Companies typically invest heavily in retaining and fast-tracking this group, offering tailored development plans, high-impact projects, and leadership opportunities.
The majority fall into this category. They are competent, consistent, and essential to operational continuity. They aren’t setting records, but they’re not liabilities either. This group often reflects the company culture and carries out the core functions of the business. With the right coaching, a slice of them can shift upwards into the top 20%.
These individuals may be under-skilled, under-motivated, or simply a poor fit for the role or culture. Sometimes they’re new and still ramping up. While some may rise with structured support, ongoing underperformance typically flags a misalignment that needs to be addressed for both the individual and the organisation.
Understanding this split allows leaders to:
Target development resources where they’ll have the most impact.
Avoid neglecting the middle, where uplift can yield compounding returns.
Proactively manage the bottom tier to either improve or make space for stronger hires.
In recruitment or workforce planning, recognising these proportions helps businesses calibrate expectations and design hiring strategies accordingly.