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Do KPIs work with remote working?
I’m a big advocate of remote work, even though the debate around it seems to come in waves. Some people swear it’s the future, while others think it’s ruining productivity. But for me, the real question isn’t *where* we work—it’s *how* we measure that work.
Without a doubt, remote work has completely flipped traditional ideas of productivity on their head. Back in the day, managers judged performance by who stayed late or looked the busiest at their desks. Now? Half the team is working from their couch, the other half from a café, and your daily stand-up is a mix of people juggling kids, pets, and coffee refills across different time zones.
Despite initial skepticism, studies show that remote employees are 47% more productive than their office-based colleagues (Stanford University). Yet, many businesses still struggle to measure performance effectively. Are your employees actually getting things done, or are they just looking busy?
That’s where Key Performance Indicators (KPIs) come in. Not to spy. Not to micromanage. But to ensure that what actually matters is getting tracked. In a remote world, measuring success based on hours worked, emails sent, or meetings attended is outdated. These metrics might make people look busy, but they don’t reflect productivity. Worse, tracking the wrong things can lead to unnecessary pressure, stress, and burnout.
The real solution is to focus on outcome-driven KPIs, and our guide to KPI Reports Explained: A Complete Guide will help you ensure you’re measuring the right things.
What Makes a Good Remote Work KPI?
A good KPI for remote teams focuses on impact, not effort. Many businesses still rely on outdated metrics like "time logged in" or "number of emails sent" because they’re easy to track. But these numbers don’t tell you whether actual work is getting done.
Instead, an effective remote work KPI should be clear, measurable, and tied to business objectives. Companies that use KPI Dashboards to track performance see faster decision-making and better alignment across teams.
KPIs That Matter for Remote Teams
1. Productivity KPIs
Productivity isn’t about looking busy—it’s about getting things done. One of the best ways to track productivity in a remote team is by measuring tasks completed per week or sprint. If deadlines are consistently met, it’s a strong indicator that work is progressing efficiently. If deadlines are slipping, it may indicate a need for better project management, clearer priorities, or additional support.
Key KPIs include:
- Employee Productivity Rate – Measures output per employee during remote work hours.
- Project Completion Rate – Evaluates the percentage of projects completed on time.
- Employee Satisfaction Score – A survey-based measure of happiness and engagement while working remotely.
2. Employee Well-Being KPIs
A burned-out team is not a productive team. Remote employees face unique challenges—work-life balance, overworking, and isolation. According to Gallup, 76% of employees experience burnout at least sometimes, making well-being KPIs essential.
Key KPIs include:
- Work-Life Balance Score – A self-reported score assessing employees’ balance between work and personal life.
- Technology Downtime – Measures total time lost due to internet outages, VPN failures, or software issues.
- Employee Turnover Rate – Tracks the rate at which employees leave the company while working remotely.
3. Work Quality & Impact KPIs
What’s the point of hitting deadlines if the work isn’t up to standard? I’ve worked with teams that deliver fast but struggle with quality, and others that obsess over details but never seem to finish anything. Neither approach is sustainable. The key is balancing speed with excellence. Just because someone is working remotely doesn’t mean quality control should suffer. Tracking work quality KPIs ensures we’re not just getting things done, but getting them done well—without endless revisions, mistakes, or missed expectations.
Key KPIs include:
- Work Hours Compliance – Monitors whether employees are working within designated work hours.
- Training Completion Rate – Tracks the percentage of remote training programs completed.
- Revision Rates & Error Reports – Highlights whether work quality is improving or declining.
4. Engagement & Collaboration KPIs
Remote work shouldn’t mean working in silos, but let’s be honest—it often does. Without those spontaneous coffee-break chats or quick desk-side check-ins, communication can slip. I’ve seen firsthand how small miscommunications can snowball into bigger issues when teams aren’t aligned. That’s why tracking engagement and collaboration is so important. Are we staying connected? Are we working efficiently together, or just bouncing emails back and forth? The right KPIs can help us keep remote teams engaged, accountable, and in sync without forcing unnecessary Zoom calls.
Key KPIs include:
- Collaboration Tools Usage – Measures how frequently employees use platforms like Slack, Microsoft Teams, or Trello.
- Response Time to Messages – Tracks how quickly employees reply to messages or emails.
- Virtual Meeting Participation – Measures attendance and engagement levels in scheduled remote meetings.
- Project Contribution Rate – Analyzes how often employees contribute to shared tasks, documents, or projects.
5. Example KPI Remote Working Dashboard
To make tracking remote work KPIs seamless, many businesses rely on a KPI Dashboard that provides real-time insights into productivity, engagement, and employee well-being. A well-structured dashboard ensures that teams stay aligned, managers make informed decisions, and employees maintain a healthy work-life balance.
A comprehensive Remote Work KPI Dashboard typically includes key metrics across four essential areas:
- ✅ Work Output Metrics: Employee Productivity Rate, Project Completion Rate
- ✅ Engagement & Collaboration: Collaboration Tools Usage, Employee Satisfaction Score
- ✅ Work Quality & Training: Training Completion Rate, Work Hours Compliance
- ✅ Employee Well-being & Tech Performance: Work-Life Balance Score, Technology Downtime
By monitoring these KPIs, businesses can ensure that remote teams remain efficient, engaged, and well-supported, leading to a more productive and balanced remote work environment.
Check out the Remote Working KPI Dashboard Example
Final Thoughts: Focus on What Actually Matters
Remote work isn’t about where your team works—it’s about what they achieve. By tracking results-driven KPIs, businesses can eliminate unnecessary micromanagement and build high-performing, motivated remote teams. Instead of measuring how long employees are online, focus on what they produce, how they collaborate, and how they feel.
For more insights on building a successful KPI strategy, check out our post on The Ultimate Guide to Employee KPIs.
by Stuart Kinsey
Stuart Kinsey writes on Key Performance Indicators, Dashboards, Marketing, and Business Strategy. He is a co-founder of SimpleKPI and has worked in creative and analytical services for over 25 years. He believes embracing KPIs and visualizing performance is essential for any organization to strive and grow.