Performance Management for Hybrid Work

July 5th, 2022

Performance management hardly elicits passionate discussions and responses during normal times. For many orgs, it was relegated to the back even further as other immediate priorities took over during the last two years.

But what if performance management could help your organization experience higher employee engagement, a more positive employee Net Promoter Score (NPS), or achieve its business goals? What if, by redesigning your performance management, you could achieve all this and more, such as improved employee perceptions of fairness and consistency of their performance evaluation?

So, what does this new performance management process look like? Our latest study, Performance Management for Hybrid Work, reveals that connection is a critically important aspect of performance management in current times. In addition, orgs must continue to focus on building a culture of clarity and capability of managers. Companies that emphasize connection, culture, and capability of managers—the "3Cs"—are more likely to have employees who are: 

  • 4x more likely to give a positive NPS
  • 3x more likely to rate their managers as effective
  • 1.6x more likely to have high engagement
  • 1.5x more likely to report that their companies met business goals

These are significant findings, especially in the context of current times as orgs struggle with setting policies around hybrid work and attracting and retaining talent.

It's time orgs took a fresh look at their performance management practices and asked if they work for everyone in the new hybrid work environment. And if you need another data point to convince yourself on why this is important, here it is—in orgs that have redesigned performance management processes within the last 2 years, 56% of employees believe their evaluation process is fair and consistent, as compared with only 36% of employees in orgs that haven't redesigned their processes.

Want to know how you can get started? Read our research or check out the summary infographic to learn about the specific practices that can help drive culture, capability of managers, and connection for effective performance management.

Priyanka photo
Priyanka Mehrotra
Research Lead at RedThread Research