How are IT companies evaluating employees this appraisal season?

The information technology (IT) sector is re-skilling and up-skilling imperatives for both companies and employees to stay competitive.

According to a recent Randstad study, 72% of respondents expressed concerns over skills gaps—the highest level since 2019. Additionally, 56% reported they are struggling to keep pace with rapid digital transformation. Notably, 80% of participating organisations stated they are transitioning to becoming skill-based enterprises.

What then are the parameters that IT companies are considering in evaluating employees? According to Manpower Group’s President of Experis Sanju Ballurkar, they are learnability, or how employees are showing both intent and skill to learn and adapt; leadership on assigned tasks and empathy towards co-workers and stakeholder; and clearer focus on outcomes.

“We are seeing rapid changes in how the world of IT services is evolving. The companies are coping with these changes via increased use of training and learning investments,” he added.

Chiming in, Sashi Kumar, talent marketplace Indeed’s Head of Sales, said, “Key parameters include how employees drive innovation, adapt to ever-evolving market demands, and fuel collaborative efforts that align with the company’s strategic goals.”

Such rapid changes and ever-evolving technologies directly affect appraisals and employee retention in the IT sector. What measures can HR managers take to address this?

Kumar said that this appraisal season, IT companies could adopt a strategic approach to employee evaluation, prioritising not just technical prowess but also how individuals contribute to the broader business objectives.

According to him, the HR professionals need to find out what’s causing poor performance and then create a plan to help each employee improve. “This plan might include extra training, mentorship, and chances to learn new skills. By having open conversations and giving frequent feedback, employers make sure that all team members know what they need to do to succeed,” Kumar added.

He further added that the main goal of the employer-employee relationship is not just to solve current problems but to create a culture of ongoing learning and growth, matching personal development with the company’s objectives.

Such measures integrated with a healthy learning culture do not only help build a strong workforce but also contributes to employee retention. Commenting on this Ballurkar said, “Emphasis on learning opportunities is resulting into employee sponsorships for learning initiatives, attractive outcome-based incentives, better working environment in office (when employees are asked to return to office, provision of hybrid/flex working schedules, additional focus on health & wellness related initiatives.”

Additionally, the majority of the IT companies are also offering policies such as paid time off and financial perks focused on professional development and well-being to retain employees. “Companies are also focusing on well-being programs encompassing mental health and financial wellness, alongside work-life balance initiatives like flexible schedules and work-from-home options,” said Kumar.