Companies that embrace inclusive appraisal systems can see significant improvements in employee morale, performance
Before Covid-19, one could argue that the appraisal system was inherently flawed, often prioritising outdated metrics and neglecting employee well-being. The pandemic, however, turned this system on its head, shaking the entire working industry across all sectors. As layoffs and pay reductions became common, the notion of bonuses and promotions faded into distant dreams. The broader issue was no longer just about appraisals, but about how companies valued their employees during one of the most uncertain times in recent history.

Appraisal Blues
“This virus outburst gave rise to new provocations for the organizations around the world. Subsequently, in order to handle this unpredictability, several companies have taken steps to cut down the costs like adjournment in the appraisal cycle or deaden salary increments.” (Verma, Mathur, & Loomba, 2021).

Indeed, the initial wave of the pandemic forced businesses to make difficult decisions. Halting salary increments and deferring appraisals became common strategies for reducing financial strain. From a business perspective, these measures made sense. However, the emotional and psychological toll on employees, many of whom were already grappling with job insecurity and personal anxieties, was considerable. A study conducted by IILM Lucknow found that 44% of participants felt that performance appraisals had become more stringent post-Covid, highlighting the strain employees felt as businesses tightened their belts.

Morale Sinks
As businesses scaled back, the emotional toll on employees was palpable. Many industries reported a massive reduction in appraisals, and with them, employee morale took a sharp dip. While temporary morale-boosting initiatives like virtual game nights and health support programmes were introduced during the lockdowns, these have since disappeared. This left people thinking if companies have begun to recover financially, why hasn’t their support for employees continued?

Attendance Over Talent
Despite the shift to remote work, appraisal biases that favour physical presence over actual productivity have persisted. Companies continue to rely on outdated metrics like offline attendance, even though research shows a different picture.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 appraised as a challenge rather than a hindrance” (Reizer, 2023). This reflects the reality of employees who not only adjusted to working from home but excelled in doing so. However, many managers have clung to traditional office-based metrics, resulting in high-performing remote workers being unfairly rated lower than their in-office counterparts.

The 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. Also, 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 let this bias go.

Double Duty
Some sectors were hit harder than others. For industries like construction or the merchant navy, where work continued in person, employees sought additional sources of income to offset salary cuts. According to a leading daily, “A whopping 142 lakh new individual investors joined the stock markets in the pandemic-stricken financial year of 2020-21”.

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

Future of Work
As companies recover, some are making meaningful strides to adapt to the new realities of work, but many remain entrenched in outdated practices. Appraisals remain inconsistent, biased evaluations continue, and a lack of meaningful employee appreciation still plagues various sectors. “Employees’ motivations and job security are directly tied to organizational performance,” as Camilleri (2021) aptly noted. Yet, many businesses fail to recognise this vital link, and their reluctance to adapt could have lasting consequences.

Companies that embrace newer, more inclusive appraisal systems, such as 360-degree feedback, could significantly improve employee morale and performance. Simple initiatives like regularly organising 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 if they will return to the status quo.

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

Authors: Ankita Singh, Undergraduate Student, FLAME University, & Prof. Moitrayee Das, Faculty of Psychology, FLAME University.