In 2020, the global pandemic changed a lot of things and a drastic transformation was noticed in the working environment. Every one of us switched to remote working mode and are continuing the same till now. We are in the middle of 2021, and there is no certainty when we will follow the work from office trend again. But this hybrid work environment has allowed employees to increase productivity, work flexibility, give extra effort and work from anywhere as per their convenience. Leaders are pleased with the outstanding performance and unexpected outcomes of some team members.

For the changing work environment, it is essential to make performance management more comprehensive and prepare employees for future disruptions. Businesses have taken many steps to walk hand-in-hand with employees during these hard times. And that’s why we have noticed numerous changes in the performance management system of 2021.

Performance management become virtual

When the whole working environment was switched to work from home, it became difficult for employers to manage their employees' performance. To keep things on track, most of the organisations shifted to cloud-based tools or applications from the traditional performance management approach. This shift shows that performance management has gone virtual and become highly progressive.

Over 50% of employers mention that their employees were more frequently participating in performance review assessment, check-ins, goal management and OKRs.

Skill development and mentoring become the norm

In the virtual working environment, skill development and monitoring play an integral role in employee performance management. It is the correct time for employees to enhance their skills. With the help of frequent check-ins and feedback, managers understand their employees and identify the training and development requirements.

Moreover, it is the right time to begin a mentoring program for employees because having a mentor in uncertain times will help them a lot. When employees know that the organisation cares about their growth and development, they automatically feel empowered, committed, and confident in their work. In this way, the employee retention rate will increase.

More focus on the well-being of employees

According to research by Harvard Business Review, leaders who invest in the well-being of their employees notice three times the return of the money they spend.

Employees' experience and well-being are the pillars of performance management in the remote working scenario. It is a year where companies have to provide the best customer experience along with excellent employee experience. If any organisation fails to do so, it will experience a lack of employee engagement and productivity.

People development become feedback centric

In the present working scenario, we can notice that people's development is based on real-time feedback. The majority of organisations are focusing on sharing immediate feedback with their team members. It is because when feedback is shared only at the time of reviews or appraisals, employees find it difficult to connect the dots. So, regular feedback has become a prime approach because it helps employees in knowing what they are doing right and where improvement is made.

Improved streamlining of goals and alignment

Goal setting and alignment is one of the most essential components of performance management. It keeps employees focused, motivated, and engaged at all times. Many organisations are setting short-term goals and providing frequent reviews these days. Companies are using the OKR methodology to set SMART goals. They are also using employee engagement software for goal alignment and data extraction.


In this novel work environment, establishing continuous performance management, providing regular check-ins and feedback, and involving short review cycles are of paramount importance. These steps will support employees as well as the organisation. Many organisations are using team management software for making the task easier.

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