While at least 90 percent of the companies in the US are planning to go for a full-onsite work setup by the end of next year, they may face a strong push back from a larger number of employees who are prioritizing flexible work arrangements in choosing an organization to work for.

A 2023 study by personal finance firm Bankrate showed that 68 percent of today’s roster of full-time workers want a hybrid work schedule, working at least one day a week.  

At least 90 percent of those who support this hybrid setup are Generation Z and Millennial workers, a pool of talent that is slowly taking over the workforce away from Generation X and Baby Boomers.

More notable in this study is the part that shows at least 78 percent of the surveyed full-time workers are willing to either change jobs, change industries, or even take a pay cut just have a fully remote work arrangement.

All these figures only show that hybrid or remote work will still be an essential tool to attract talent and retain employees, which is crucial considering that most businesses are facing a worldwide skills gap.

But while the pandemic showed us that remote work works, most businesses want to go back to an onsite setup because of difficulties in performance management.

In this article, we will delve into the best practices, lessons from the pandemic, about how to make remote work work with proper performance management.

READ MORE: Conducting constructive employee performance reviews

Challenges in remote performance management

One glaring challenge that effective management of employee performance is the lack of physical presence. Traditional cues like body language and in-person interactions are limited, making it challenging for managers to gauge the engagement and well-being of their remote teams. But one way to get over this hurdle is to leverage technology. You can utilize regular video conferences to bridge the gap and facilitate face-to-face interactions. You can also use existing instant multimedia messaging platforms to encourage open communication, so they express concerns or seek guidance whenever needed.

Remote work also often amplifies communication and collaboration challenges, leading to misunderstandings and delays in task completion. The absence of immediate access to colleagues may hinder the flow of information and collaborative efforts. While instant messaging tools help, it pays to establish regular check-ins with the employees, so they have a venue to channel clarifications. Another non-technical solution to this is by cultivating a culture of empathy and honest communication. If an employee is comfortable seeking clarification and talking about concerns with their managers, then communication will be as good, or even better, than it is with a full onsite setup.

READ MORE: Fostering a sense of belonging among employees

Without physical supervision, ensuring consistent productivity and accountability can be difficult. Remote employees may face challenges in self-motivation and staying focused on tasks. One solution is to implement performance metrics and key performance indicators (KPIs) to objectively measure productivity. But nothing beats fostering a culture of trust while maintaining accountability through regular check-ins and progress assessments.

The physical and mental well-being of remote employees is a critical aspect often overlooked. The blurred lines between work and personal life can lead to burnout and reduced job satisfaction.

But HR leaders can solve this by setting clear boundaries for working hours to promote work-life balance. It wouldn’t hurt as well to provide resources for mental health support and encourage breaks to recharge. Training your remote managers to handle challenges that related to mental wellbeing will go a long way.

Understanding and addressing these challenges is crucial for organizations striving to optimize productivity and maintain a positive remote work environment. By addressing these key challenges, organizations can create a framework for successful remote performance management, fostering an environment where employees thrive and contribute effectively to the company's objectives.

Strategies for effective remote performance management

Navigating the complexities of remote work requires thoughtful strategies to ensure that performance management remains robust and aligned with organizational goals. Implementing the following strategies can contribute to the successful management of remote teams and the optimization of individual and collective performance.

The first step in building an effective remote performance manage structure is by establishing clear expectations and making them official in recorded or documented communication. Creating detailed work plans, for one, would be helpful. Always communicate project goals, milestones, and deliverables clearly to avoid ambiguity. Providing clear, detailed work plans outlining tasks, deadlines, and expectations for each team member will help establish the boundaries of work and personal time.

Collaborate with your employees in creating measurable, realistic, and doable Key Performance Indicators or “KPIs.” This will help you establish goals and expectations at an employee level, especially during the conduct of a performance review. Develop a performance evaluation framework based on quantifiable metrics and KPIs. Regularly assess and provide feedback on individual and team performance, focusing on accomplishments and areas for improvement.

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Perhaps, the greatest help you can get in building an effective remote performance management structure is technology. A suit of comprehensive communication, project management, and human capital management platforms are already available. While you can build your own, partnering with third-party providers will help your performance management work easier and more efficient. Investing in tools will definitely push you up in terms of performance management efficiency.

More importantly, invest in data building. No business in the digital era can thrive without data. And it only follows that no performance management work, whether onsite or remote, can become effective without a data-driven approach. Build your own data, invest in data specialists and tools, and see the difference it can make in managing remote workers.

Lastly, the real secret to effective remote performance mindset is not a tool or a technique, but a mindset. Remote work only thrives on innovation, which means changes tend to happen fast. Adopt a mindset that is always open to changes. Look into internal and external data, identify trends and patterns, and adjust as needed.

Effective remote performance management requires a combination of technological integration, clear communication, and a mindset open to continuous improvement. By addressing challenges and implementing strategic approaches, organizations can create an environment where remote employees thrive and contribute significantly to company objectives.