How To Manage KPIs For Remote Teams in 2023

KPIs For Remote Teams

Managing KPIs for remote teams is a process that helps you identify how well your remote workers are performing and makes you aware of whether they are on track. It involves measurement, analysis and reporting. There is no doubt that remote work has become more prevalent in recent years. It allows Employees to work where and when they want, contributing to the growth of new businesses and the productivity of many established companies. Remote workers can help organizations realize increased output, productivity and profitability by improving their performance management strategy.

So if you are a remote team working in a different timezone and feel like your team is not functioning at its optimal level, then this article might be what you need to turn things around. In this article, we will show you how best to measure the performance of your remote workers using key performance indicators.

What is the key performance Indicator(KPI)?

KPIs For Remote Team
KPIs For Remote Team

A key performance indicator (KPI) is one of the most commonly used tools for measuring an employee’s performance in a team. Remote teams are no different, as it takes two to tango. The most successful leaders of remote teams need to effectively manage their key performance indicators (KPI) while ensuring they have the right people in place to meet the needs of their organization. Key Performance Indicators (KPIs) are the measures that help us measure a business’s performance. It can be used to assess an employee’s work, monitor its quality and efficiency, control workflow of specific tasks, track information related to sales and marketing activity, etc. Using key performance indicators, managers can evaluate their employees’ work and progress. It is a helpful tool for managers and team leaders to measure how remote workers perform.

For a KPI to be useful for team leaders, it must follow the SMART principle. A KPI needs to be Specific, Measurable, Achievable, Relevant, and Timely. This helps you distinguish between bad and good KPIs. Another thing is to measure only the most important KPIs, so you don’t overdo things. Remember, less is more.

Why is setting KPIs for Remote Teams So Important?

1. To make sure everyone is on the same page.

Working remotely is great, but it can be challenging. When you’re working remotely, it’s easy for your team to become disconnected and lose sight of each other. In a traditional office environment, your team is always together and can see each other face-to-face. However, when you’re remote, it’s not always easy to communicate with one another as easily as you would if you were sitting in the same room together.

To help solve this problem and keep everyone on the same page, it’s essential to set KPIs that allow everyone involved to understand how well things are going with their work individually and collectively.

2. Allow you to measure progress

By setting KPIs for yourself and others within your organization, you’ll be able to measure progress along the way and ensure everyone stays focused on getting the job done right! There are two kinds of KPIs:

Strategy KPIs measure the relative health of the business and its direction. For example, if you’re a software company, one strategy KPI might be revenue growth.

Process KPIs measure how well your team is working together or how well they’re getting work done. For example, if you’re a software company and your team is working on a new feature, one process’s KPI might be the number of daily bugs or hours worked per week on that feature.

3. Drive Better Results

A team should be able to produce results, and KPIs are a good way of identifying those results. If a team’s KPIs are not met, something needs to change.

Setting KPIs is essential in ensuring that remote teams are working effectively. The first step is to determine what the KPI means. For example, if your team aims to increase revenue by 25%, how do you define revenue? Is it sales? Or is it total revenue? Once you’ve determined the KPI, it’s time to set it and measure it.

Top KPI to measure for remote team

KPIs could differ from company to company depending on what type of work you are doing and what company you are working with. For example, if you are a marketing agency and working with clients remotely, your KPI might be engagement rate or ad click-through rate (CTR), while if you work as an engineer at a tech startup, then your KPIs would be pipeline completion time or developer throughput.

You should keep track of five key performance indicators (KPI) for remote teams. These include communication, hours tracked, accountability, response time, and task completion time

1. Communication

This is how well your employees communicate with each other on a day-to-day basis. It’s essential to ensure no misunderstandings between team members because this can cause problems when trying to work together. For example: If one person thinks something is going wrong, but another disagrees with them about it, then there may be confusion about what happened or why it happened in the first place, which could lead down a path of unnecessary stress for everyone involved. Another example is if an employee runs a weekly meeting with other team members, do they send the agenda in advance? What about those responsible for managing client relationships? Do they promptly reply to client emails or calls? Are they clear, polite and concise in their messages? Are their messages free from typos, spelling and grammar errors? To overcome this, ensure that you determine a response time you feel conveys attention and respect while understanding and considering various challenges remote workers face, such as timezone difference, internet connectivity and caring for family members.

2. Hours tracked

Time tracked are another important KPI for productivity because it tells you how many hours per day or week you or your team members spend working on tasks related to your business or personal projects versus how much time is spent doing other things like eating lunch or sleeping (or both!). How many hours per week does each person spend working remotely? If someone isn’t logging into their computer regularly, then they might not be getting enough sleep before bedtime, which means they won’t be able to perform at peak levels during the day either – creating potential issues later down the line due to lack of motivation/attention span overload syndrome symptoms. So try keeping track of your team using different time tracking and management software like time doctor by writing down every hour spent online after work or before lunch. This information can help you adjust and ensure that everyone is working on what they ought to be working on to ensure that each member delivers their task on time.

READ MORE: Time Tracking Software for Remote Workers

3. Response time

Another significant key performance indicator to track is the time your team is using to respond to messages. Let’s say an employee is responsible for managing a client relationship. How fast do they respond to customers’ calls or reply to their emails? If your response time is lower than average, you’re losing business and customers. This KPI is very important because If a customer takes longer than expected to receive an email reply or if a salesperson has trouble delivering information promptly, these delays can impact customer satisfaction and lead to lost sales. Measuring response time KPI can also help you establish how well individual employees communicate, which speaks to their ability to cope with the time management demands of remote working. Specifically, look at how long it takes them to respond to Slack messages, emails, or client calls.

4. Task Completion Time

Task completion time is another key performance indicator that can help you prioritize projects and make decisions based on their importance. This metric measures the time employees complete their assigned tasks each day. Companies need to monitor this metric because if it takes too long for employees to complete their tasks each day, it might indicate staff burnout or inefficient team dynamics, among other problems. The average person doesn’t take the time to complete even the simplest tasks, so measuring your team’s productivity will give you a better idea of where improvements need to happen first.

5. Accountability

Accountability is another KPI that should be measured by employers because this determines the overall success of the team. Team members should be accountable for their tasks and when they complete them. Remote teams must be.

READ MORE: Tried and Tested Ways to Track Remote Project Milestones 

How to Improve (KPI) key performance indicator for remote team

One of the biggest challenges in remote teams is getting all team members to feel invested. The most common way to do this is by tracking KPIs.

1. Increase accountability and motivation

For KPIs related to the overall organizational goals and accountability, team leaders must increase the sense of accountability and motivation. This way, they are much more motivated to work hard. Remote teams are becoming more common, and they often need to work in a more distributed way. But this can mean it is harder for leaders to ensure accountability and motivation within their team. Here are some ways that you can increase accountability and motivation:

  • Set clear targets that employees can see, check in on progress, and measure. This will help build trust between leaders and employees.
  • Use tools such as Slack or Google Docs to share information about KPIs with all employees so that everyone knows where the team is at and what needs to be done next.
  • Make sure your remote workers have access to tools that enable them to track their own progress, such as time-tracking software or mobile apps designed specifically for remote workers (for example, Buffer).
  • By assigning tasks and responsibilities to each team member, you can give them a sense of ownership over the project and ensure they are doing their best work. They will be more motivated to work hard because they feel they have a say in what’s happening and how things are progressing.
10 Best Practices To Manage Remote Teams

2. Self-discipline

To help your remote employees learn self-discipline, set clear boundaries about when tasks should be completed each day and provide resources for when there aren’t enough hours in the day (such as having multiple people working together on projects). You could also consider giving coaching sessions so that your best employees can help others improve their productivity while learning new skills or working through issues. You must ensure that all team members are disciplined enough not to get distracted by things like emails or instant messages but still able to focus on their work when needed.

3. Provide Resources to Make Remote Employees Productive

It’s important that you provide resources so that your remote employees can get the job done without having to worry about time constraints or other issues that could prevent them from getting things done efficiently. For example, if one of your remote employees needs access to a computer with a high-speed internet connection to complete their work, you can provide them with it. For instance, some workers might need Canva premium, Grammarly premium, or any premium version of other relevant tools. Team leaders or employers can give them access to this software by paying for a subscription. This will increase productivity and employee motivation.

Tools to measure remote team KPI

1. Basecamp

Basecamp is an excellent tool for remote teams who want to keep track of employees’ tasks and performance. With Basecam, you can organise everything in one place and see your employees’ progress on assignments in real-time.

2. DeskTime

DeskTime is a time-tracking app for businesses, but it is also used by employers looking to measure employee performance. This tool allows managers to monitor employees’ time on specific projects and label different apps as productive, unproductive and neutral.


This employee workflow tool allows managers to create tasks in different categories and rate each as high, medium or low priority. Leaders can assign these tasks to specific employees, who update the status of their progress as they go along.


We hope this article helps you to understand the importance of KPIs for your remote team. The KPI that you choose should be relevant, realistic, and achievable. It should also have a clear link between what your company wants from its employees and what it measures using these KPIs.

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