Bridging Appraisal and Career Longevity: The Mediating Role of Strategic Alignment in Competency-Based Performance Management

Abstract

Modern organizations face rapid technological shifts, market disruptions, and high employee turnover. While many companies use competency-based performance appraisals instead of old-fashioned trait ratings, we still don't fully understand how these appraisals help build long-term, thriving careers. This study looks at how different parts of competency-based performance appraisals impact sustainable career development, focusing on the key role that strategic alignment plays. Drawing on the Resource-Based View, Social Exchange Theory, and Conservation of Resources Theory, we tested whether combining clear competency frameworks, quality feedback, and goal clarity can protect psychological and professional well-being over a long career. Using a mixed-methods design, we gathered quantitative data from 600 middle managers and technical professionals in Information Technology (300) and Manufacturing (300) across six major industrial hubs in India. Structural equation modelling and bootstrapping analyses showed that competency-based performance appraisals have a strong direct positive effect on sustainable career development (β = 0.43, p < 0.001). They also have a clear indirect effect through strategic alignment (β = 0.24, p < 0.001), which accounts for 35.8% of the overall effect (β = 0.67). Among all variables, the quality of feedback stood out as the single strongest predictor of career sustainability (β = 0.41).