On June 17 2021 DEVELOR International hosted its 6th webinar in the series RE/Think HR. This time the topic was chosen „The Challenges of Performance Management in Remote and Hybrid Environment.“ The event hosted over 100 guests from 11 countries.
In short:
- Traditional performance management systems often fail to support growth, focusing too heavily on individual evaluation and compensation rather than development.
- Modern PMS must be trust-based, personalized, and dialogue-driven, with a stronger focus on team performance, engagement, and root-cause discussions.
- DEVELOR promotes a four-step transformation journey, from reassessing KPIs and systems to equipping both managers and employees with the right mindset and skills.
- Performance management in hybrid and remote environments must shift from control to empowerment—supporting people and business growth together.
HR Is In a Performance Management Trap
An interesting statement to ponder came from the opening address of Mr Zsolt Pozvai, Global CEO of DEVELOR. He argued that the HR function being responsible for the system of performance management is in a difficult situation. In many companies, the PMS is far from achieving its purpose.
60% of the participating company representatives stated that the purpose of PMS should be to support team and organisational performance growth. At the same time, it is true that the majority of the existing PM systems are built on the EVALUATION OF AN INDIVIDUAL PERFORMANCE. The discrepancy here might be the driving reason why 83% stated that they want some level of change to happen to the system currently in place.
Another troubling fact is that the system of performance reviews is often tied to the money aspect – whether directly or indirectly. This deteriorates the developmental efforts, because it pushes the managers towards more generous and less accurate evaluation, thus also hindering the skill progress of employees.
Trust Is The Basis Of The Future Of Performance Management
In the main part of the event – the panel discussion – three guests (representing various countries and industries) shared their view on leadership shift and performance management in particular.
Emel Mordo, Director of People & Culture for Philip Morris International in Ukraine, Caucasus & Moldova region, Lászlo Cser, HR Director of Kuehne+Nagel in Hungary and Peter Sandin, Chief Executive Office of ComAp Group from the Czech Republic (connecting from Sweden) brought an interesting diverse perspective on the topic.
It is all about trust.
This statement resonated a lot in the panel discussion. Modern performance management systems should be more focused on the development and less towards control. Control of results is part of the job, however the system, as stated in the survey, should mostly support the growth, not evaluate and measure the result.
Performance Management For A Hybrid Or Remote Work: Personal, Dialogue-based, Teams And Engagement Focused
It was obvious in the presentation and the answers of the panellists that the rethinking of Performance Management for the new era is imminently needed.
It is DEVELOR’s prerogative that the real Performance Management System of the future must reflect the following:
- Personalized, on-demand, data-driven performance feedback
- More a dialogue about barriers and root-causes
- Stronger emphasis on team, rather than individual
- Have some focus on engagement and well-being
DEVELOR as a leading company in the human development field sees the PMS as a critical part of the Employee Journey. To review this obviously lacking Mr Zsolt Pozvai presented a four-part journey:
- Assess and rebuild your Performance Management system Considering various aspects like purpose, KPIs-set, frequency, technology support
- Implement the system, with continuous improvement
- Inform and train managers: mindset, process and skillset
- Inform and train employees: mindset, process and skillset
DEVELOR is ready to be the partner for all four steps of this transformative journey for any company brave enough to take the action.
Download the slides from the event below for more details or contact DEVELOR to start a discussion about how your Performance Management System could be the driving force of improvement and growth of your people, teams and organization.
What is RE/Think HR?
RE/Think HR is a series of international webinars dedicated to HR and L&D managers. The pandemic-induced changes in the way of working and leading caused complications that required novel solutions. Thus, DEVELOR decided to establish this virtual event series to allow HR managers from different countries to ventilate existing challenges, share experiences and get inspirations and ideas from others.
Frequently Asked Questions About Modern Performance Management in Hybrid and Remote Work
Traditional performance management systems often need to change because many of them were built around individual evaluation, ratings and compensation decisions, rather than continuous development. In today’s hybrid and remote work environments, organizations need performance management to support growth, engagement and team effectiveness. When the process is too focused on control, employees may become defensive and managers may avoid honest conversations, especially if performance reviews are closely linked to pay. A modern performance management system should create space for regular dialogue, feedback, reflection and problem-solving. For HR and L&D professionals, the key challenge is to redesign performance management so it helps people improve, not only measures what has already happened.
Trust-based performance management means shifting the focus from control to empowerment, while still keeping clear expectations and accountability. In practice, it requires managers to have open conversations about goals, barriers, root causes and support needs, rather than relying only on annual reviews or formal ratings. Trust does not mean avoiding performance discussions; it means creating a climate where employees can speak honestly about challenges and take responsibility for improvement. This approach is especially important in remote and hybrid teams, where leaders cannot rely on visibility or physical presence as indicators of performance. For organizations, trust-based performance management can strengthen engagement, ownership and sustainable performance.
Performance management in hybrid and remote teams should be more frequent, dialogue-based and focused on outcomes rather than presence. Managers need to clarify priorities, align expectations and create regular opportunities to discuss progress, blockers and well-being. A strong system should also include team-level performance, because collaboration, knowledge sharing and collective results are essential in flexible work environments. Data and digital tools can support the process, but they cannot replace meaningful conversations between managers and employees. For HR teams, this means performance management should be integrated into the employee journey and supported with manager training, employee communication and continuous improvement.
HR and L&D teams can redesign performance management by first clarifying the purpose of the system: whether it should mainly support development, team performance, engagement, business results or compensation decisions. The next step is to review KPIs, feedback frequency, technology, manager capabilities and employee expectations. Managers need training not only on the process, but also on the mindset and skills required for effective performance conversations. Employees also need to understand their role, including how to ask for feedback, reflect on progress and take ownership of development. A successful transformation treats performance management as an ongoing journey that supports people, teams and organizational growth.
