Companies that adopt inclusive appraisal systems can see significant improvements in employee morale and performance.

By Ankita Singh, Dr Moitrayee Das

Before Covid-19, it could be argued that the appraisal system was inherently flawed, often prioritizing outdated metrics and neglecting employee well-being. The pandemic, however, has disrupted this system, shaking the entire labor sector, all sectors combined. As layoffs and pay cuts became commonplace, the notion of bonuses and promotions faded into distant dreams. The broader question was no longer just about reviews, but about how companies valued their employees during one of the most uncertain times in recent history.

Assessment blues

“This viral explosion has given rise to new provocations for organizations around the world. Subsequently, in order to cope with this unpredictability, several companies took measures to reduce costs, such as postponing the evaluation cycle or amortizing salary increases. (Verma, Mathur and Loomba, 2021).

Reviews remain inconsistent, biased evaluations persist, and the lack of meaningful employee appreciation continues to hurt various industries.

Indeed, the first wave of the pandemic forced businesses to make difficult decisions. Halting salary increases and deferring evaluations have become common strategies to reduce financial stress. From a business perspective, these measures made sense. However, the emotional and psychological toll on employees, many of whom were already struggling with job insecurity and personal anxieties, was considerable. A study conducted by IILM Lucknow found that 44% of participants felt that performance reviews had become stricter post-Covid, highlighting the pressure felt by employees as companies tightened their belts.

Morale drops

As companies scaled back operations, the emotional toll on employees was palpable. Many industries have reported a massive reduction in reviews, leading to a sharp drop in employee morale. While temporary morale-boosting initiatives, such as virtual game nights and health support programs, were introduced during lockdown, they have since disappeared. This has made people wonder if companies have started to recover financially, why hasn’t their support for employees continued?

Presence on talent

Despite the shift to remote work, assessment biases that favor physical presence over actual productivity persist. Businesses continue to rely on outdated metrics like offline attendance, even though research shows a different picture. “Building resilience through exposure to stressors like Covid-19 can lead to improved performance when the situation is assessed as a challenge rather than an obstacle” (Reizer, 2023). This reflects the reality of employees who have not only adapted to working from home, but excelled at it. However, many managers have clung to traditional office-based metrics, resulting in top-performing remote workers being unfairly rated lower than their in-office counterparts.

Continued reliance on these old standards risks undermining the morale and productivity of employees who have proven their ability to work effectively in more flexible environments. Furthermore, it is proven by many studies such as Kondratowicz et al (2022) that working from home is positively correlated with employee satisfaction, so it is very crucial for managers to abandon this bias.

Double duty

Some sectors have been hit harder than others. In sectors like construction or shipping, where work continued in person, employees sought additional sources of income to offset salary cuts. According to a leading daily, “142 million new individual investors joined the stock markets in the pandemic-hit financial year 2020-21”.

Another common phenomenon during this period was the rise of moonlighting, where individuals hold more than one job. Research by Lele et al (2023) highlights how the work-from-home setup has prompted many employees to explore additional income opportunities. Even companies like Swiggy have adapted, allowing employees to access secondary employment. This trend represents one of the lasting impacts of the pandemic, a more flexible approach to work. This has opened the door to more fluid employment practices that could benefit employees and businesses in the long term.

The future of work

As businesses recover, some are making significant strides to adapt to new workplace realities, but many remain entrenched in outdated practices. Reviews remain inconsistent, biased evaluations persist, and the lack of meaningful employee appreciation continues to hurt various industries. “Employee motivation and job security are directly linked to organizational performance,” as rightly pointed out by Camilleri (2021). Yet many businesses fail to recognize this vital connection, and their reluctance to adapt could have lasting consequences.

Companies that adopt newer, more inclusive appraisal systems, such as 360-degree feedback, could significantly improve employee morale and performance. Simple initiatives like hosting regular social events or offering mental health support would help bridge the gap between effort and recognition. The challenge now is whether businesses are willing to learn from the pandemic and implement these changes or whether they want to return to business as usual.

The pandemic may be fading, but it remains to be seen whether companies will evolve their evaluation systems and employee engagement practices. Time will tell whether the post-pandemic work environment reflects lessons learned or reverts to its old, flawed ways. The answer will determine whether employees continue to feel valued or whether they once again find themselves asking, “Am I still worth it?”

(Ankita Singh is an undergraduate and Dr. Moitrayee Das is an assistant professor, Flame University, Pune)