How HR can build high-performing teams from the inside out

Across Australia, hybrid and remote work are now part of how we operate. Yet even as flexibility becomes standard, many HR leaders are asking a familiar question: how do we help our people not only adapt, but truly thrive?

The Australian HR Institute’s Hybrid and Flexible Working Practices in Australian Workplaces 2025 report offers some clues. While hybrid work has lifted productivity, wellbeing, and retention, it’s also brought fresh challenges. More than half of organisations (57%) report reduced collaboration, 38% see weaker employee connection, and 35% struggle to monitor performance effectively.

These numbers highlight something bigger: performance depends less on where people work and more on how connected, trusted, and supported they feel while doing it.

The inside-out approach to performance

In my experience, lasting performance starts from within. It doesn’t come from policies or dashboards, it grows from trust, curiosity, and self-awareness. When people know their strengths, feel safe to speak up, and see how their work links to the company’s purpose, performance starts to sustain itself.

A strengths-based approach helps create that foundation. Tools like Gallup’s CliftonStrengths, which identify and develop individual talents, can reshape how teams operate. Rather than fixing weaknesses, they help people see how their skills complement each other, and that understanding fuels collaboration and accountability.

In uncertain times, this focus on strengths creates steadiness. People who know what they do best are more confident in change and more likely to contribute meaningfully to shared goals.

Leadership as the multiplier

According to Gallup, managers account for at least 70% of the variance in employee engagement, leadership capability remains one of businesses toughest challenges  The Australian Institute of Management’s Middle Managers report found that 59% of employees rate their managers’ leadership skills as “average or below,” and more than half believe employers aren’t keeping their promises.

Gartner’s HR Priorities for 2025 paints a similar picture: three in four HR leaders say managers are overwhelmed, and most believe current leaders lack the skills to develop mid-level talent.

The takeaway is clear, we need managers who can coach, not just supervise. Leaders who listen, give useful feedback, and genuinely care about their people will be the ones who build high-performing teams in the years ahead.

Performance and wellbeing: not a trade-off

Workload pressure continues to test engagement. The AHR Quarterly Australian Work Outlook 2025 report found that excessive workload is the top reason employees leave. In a market where burnout is high and younger workers are switching jobs at twice the rate of older peers, HR leaders need to redefine what “performance” means.

High performance today isn’t about doing more, it’s about doing better. It’s helping people find energy, focus, and meaning in their work. Wellbeing isn’t a perk; it’s a business strategy that drives retention and results.

According to Gallup, People who focus on using their strengths are three times as likely to report having an excellent quality of life and six times as likely to be engaged in their jobs.

A culture of growth and connection

Building high-performing teams from the inside out means creating workplaces where people feel seen, supported, valued and stretched. It’s about aligning personal purpose with company goals, and developing leaders who model curiosity, courage, and care.

Hybrid work has changed how we work, but not why people show up. They still want meaningful work, recognition, and growth.

When we build on that foundation - investing in people’s strengths, in leadership capability, and in connection - performance follows. Not through control, but through trust and empowerment.

Charly Hollingsworth is the head of people, culture and safety at VistaPrint ANZ