New realities of work-Telangana Today

Companies that use inclusive appraisal systems can see significant improvements in employee morale and productivity.

TO Ankita Singh, Dr. Moitrayi 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Before Covid-19, it could be argued that the appraisal system was inherently flawed, often prioritizing outdated metrics and neglecting employee well-being.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 turned this system on its head, shaking up the entire workforce across all sectors. As layoffs and pay cuts became commonplace, the idea of ​​bonuses and promotions became a distant dream. The broader issue was no longer just valuations, but how companies valued their employees during one of the most volatile periods in recent history.

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Score Blues

“This virus outbreak has created new challenges for organizations around the world. Subsequently, to cope with this unpredictability, several companies have taken cost-cutting steps, such as postponing the appraisal cycle or reducing salary premiums.” (Verma, Mathur & Lumba, 2021).

Appraisals remain inconsistent, biased assessments continue, and a lack of meaningful employee appreciation continues to plague various industries.

Indeed, the first wave of the pandemic forced businesses to make difficult decisions. Stopping 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 significant. A study conducted by IILM Lucknow found that 44% of participants felt that performance appraisals have become stricter post-Covid, highlighting the stress employees are feeling as businesses tighten their belts.

Morale is falling

As businesses scaled back operations, the emotional toll on employees was palpable. Many industries have reported massive reductions in ratings, and with it, employee morale has plummeted. While temporary morale-boosting initiatives such as virtual game nights and health support programs were introduced during the lockdown, these have since disappeared. This got people wondering: If companies have started to recover financially, why isn’t their support for employees continuing?

Attendance is more important than talent

Despite the shift to remote work, evaluation bias that prioritizes physical presence over actual productivity persists. Companies continue to rely on outdated metrics such as offline traffic, even though research shows a different picture. “Increasing resilience through exposure to stressors such as Covid-19 can lead to increased performance when the situation is appraised 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 thrived on it. However, many managers adhere to traditional office metrics, resulting in high-performing remote workers being unfairly rated lower than their office counterparts.

Continuing to use these old standards risks damaging the morale and productivity of employees who have proven their ability to work effectively in more flexible environments. Additionally, many studies such as Kondratovic et al (2022) prove that working from home is positively correlated with employee satisfaction, so it is important for managers to remove this bias.

Double duty

Some industries have been hit harder than others. In industries such as construction or the merchant marine, where work continued in person, employees sought additional sources of income to offset pay cuts. According to a leading daily, “a whopping 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 people take on more than one job. Lele et al.’s (2023) study shows how work-from-home arrangements have encouraged many employees to explore additional income opportunities. Even companies like Swiggy have adapted by allowing employees to work part-time. This trend represents one of the long-term consequences of the pandemic – a more flexible approach to work. This has opened the door to more flexible employment practices, which can benefit both employees and companies in the long run.

The future of work

As companies recover, some are taking significant steps to adapt to new work realities, but many are still stuck with outdated practices. Appraisals remain inconsistent, biased assessments continue, and the lack of meaningful employee evaluation continues to plague various industries. “Employee motivation and job security are directly linked to organizational performance,” as Camilleri (2021) aptly noted. However, many businesses are unaware of this vital connection, and their reluctance to adapt can have long-term consequences.

Companies that use new, more inclusive appraisal systems, such as 360-degree feedback, can significantly improve employee morale and productivity. Simple initiatives such as organizing regular community events or providing mental health support can help bridge the gap between effort and recognition. The challenge now is whether businesses are ready to learn from the pandemic and implement these changes, or whether they will return to the status quo.

The pandemic may be subsiding, but the question remains whether companies will evolve their evaluation systems and employee engagement practices remains an open question. Time will tell whether the post-pandemic work environment will reflect the lessons learned or return to its old, misguided ways. The answer will determine whether employees continue to feel valued, or whether they will once again question, “Am I worth it?”

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