The Struggles of Hybrid Working on Performance Management: Are Managers Off the Hook?

A recent Performance Management Report by Advanced, a leading software and services provider, sheds light on the challenges posed by hybrid working on employee performance management. The report, based on a survey of 1,350 UK and US workers in November 2022, reveals that nearly half of the respondents (48%) are struggling in a hybrid environment, and a significant majority (73%) believe their teams would benefit from spending more time with their managers.

Remote working has had a negative impact on effective performance management, leading to employee insecurity regarding their roles. More than half of the respondents (51%) express concerns about pay cuts, while 44% are worried about being made redundant. The data also indicates a worrisome rise in staff burnout, with 91% of HR directors acknowledging it as an issue, compared to 84% in the previous year. Astonishingly, 42% of the workforce is more stressed than before, with only 21% feeling less stressed.

One concerning discrepancy highlighted in the report is the difference in perceptions between managers and staff regarding performance management effectiveness. While 77% of managers claim to have the right tools to support their teams, employees disagree, with 39% stating that performance management in their organization is basic or actively bad.

Furthermore, there is a disconnect between how often managers and employees believe performance management conversations occur. More managers (72%) claim to have such conversations at least once a month, a 5% increase from last year. In contrast, only 25% of employees believe this to be true, a 2% decrease from the previous year.

Nick Gallimore, Managing Director of People Management at Advanced, emphasizes the impact of hybrid working on individuals and warns of potential disastrous consequences for organizations facing challenging trading conditions. He calls for permanent management structures to adapt to the changes brought about by remote work and stresses the need to prioritize employee needs.

The report also revealed that 40% of HR directors prioritize enhancing performance in performance management, compared to 31% in the previous year. Productivity and engagement have become less of a focus, with only 27% of HR directors emphasizing these aspects, down from 48% last year.

Other notable findings indicate that nearly half of employees (49%) feel that their managers do not assist in avoiding burnout, and 31% of HR directors say they lack time for continuous performance management. Additionally, 36% mention budget constraints as a barrier to investing in a performance management system.

In conclusion, the report highlights the pressing need for effective performance management strategies in the context of hybrid working. Companies are urged to prioritize the well-being and productivity of their employees by adopting appropriate performance management technology and fostering meaningful one-to-one conversations between staff and managers to address issues proactively.