28/06/2025
In many businesses, HR is limited to hiring and paperwork. However, neglecting performance management is among the leading causes of organizational instability and employee turnover, a challenge that is already significantly high in Libya due to the limited talent pool in the job market.
A client in the food manufacturing sector was facing persistent workforce instability but had no clear metrics to understand its extent. Sigma’s audit and data extraction identified a 65% annual turnover rate, with most exits being voluntary, unexpected, and involving high-performing staff. While management initially blamed salary dissatisfaction, but analysis revealed deeper structural gaps: the absence of a performance evaluation system, no development-oriented feedback, and weak internal communication frameworks.
Sigma conducted a 360° HR diagnostic, uncovering:
– Absence of job-specific KPIs
– No formal review cycles
– Promotions based on seniority, not performance
– A culture of ambiguity around expectations
Sigma’s intervention:
– Quarterly evaluations with role-specific KPIs
– Competency framework by job families
– Trained team leaders on objective reviews
– Linked development plans to evaluations
– Simple internal feedback channels
Employees began to receive structured, fair, and documented feedback. Top performers were identified, supported, and retained. Underperforming staff were offered coaching opportunities or reassigned where applicable.
However, the new system was not equally welcomed by all employees, particularly among those with consistently low performance. Many expressed resistance, often citing the belief that their roles were "not measurable". As commonly understood in business management: what cannot be measured cannot be managed or improved.
Despite efforts to offer training and development plans, a portion of these employees refused to engage with the process. As a result, most of them were eventually exited from the company. This transition allowed for the integration of new talent — individuals capable of performing and growing within a structured, feedback-driven environment.
Results after 12 months:
– Turnover dropped from 65% to 17% — a significant reduction in just six months
– Internal promotion rate doubled
– Team leads reported an 82% improvement in role clarity (measured via internal surveys)
Sigma applies international best practices while adapting them to local realities. In contexts like Libya, where companies often grow without foundational management and HR systems, the absence of performance management can be more damaging than the absence of hiring itself.
In the Libyan market, where informality is common and systems are often lacking, structure isn’t a luxury — it’s a necessity.
Stability starts with people. Retention starts with structure.
