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Appraisals go AWOL and so do employees

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77% have introduced new digital processes to support employees over the past year, yet only 41% say their appraisals are conducted via HR software

63% see an increase in employee churn, with flexibility, limited progression, and lack of appraisals identified as key reasons for employees leaving

London, UK; 3rd November 2021: 77% of organisations have introduced new digital processes to support employees during remote working over the past year, yet only 41% say their appraisals are conducted via HR software. That’s according to research by StaffCircle, which surveyed employees and HR managers to identify the disparity between organisations adopting new technology (like Microsoft Teams to improve communication within the workforce), but still using paper-based and manual processes to conduct performance appraisals.

When asked whether they would consider leaving an organisation if they didn’t have frequent feedback and communication from their manager, 61% of employees said they would leave. However, only 11% of HR leaders noted that a lack of employee appraisals is the reason for employees leaving.

Mark Seemann, founder and CEO of StaffCircle, commented: “There’s a real disparity between the importance of performance appraisals for employees, and HR managers still not prioritising them. Having systems in place that support employees remotely is paramount, yet businesses haven’t recognised this when it comes to performance reviews. Employees might be speaking to their managers more frequently when they work remotely, but this communication isn’t structured or productive, and both employees and organisations are missing out on key insights.”

The Great Resignation

Worryingly, 63% of HR leaders and 56% of employees have reported having seen an increase in the number of people leaving their organisation in the last six months. Flexibility is a key reason for this, with 79% of employees saying they care about being able to work remotely and flexibly. HR managers also identified ‘the ability to work flexibly’ as the most common reason for employees leaving an organisation.

After the inability to work flexibly (26%), the survey found that the most common reasons for employees leaving an organisation include lack of progression opportunities (18%), employees being made to work in the office (15%), and lack of feedback from managers (11%).

“With the workforce in a state of flux it’s crucial to know what is important to your people and one thing which is clear from these results is that feedback matters,” Seemann continued. “I think we all know by now that flexible and remote working rank right up there in choices of roles and organisations – but with hybrid working, out of sight should not equal out of mind. People still need motivation, clear career direction and progression opportunities, regardless as to whether they work in an office or remotely.”

Survey note: The survey was conducted in October 2021 with 500 employees and 200 HR managers.

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