Performance Reviews for Remote Teams: Best Practices

The initial shock of the rapid transition to working from home has subsided at IceHrm and likely in many other companies as well. Since the end of the pandemic is not in sight, companies and employees are beginning to accept this new way of life and adapt to working from home or to new restrictions in the office. However, leaders may have noticed that performance is not keeping up. We want everyone to do their best and continue to deliver high-quality results, but it is unrealistic to expect the same level of productivity from everyone as under normal circumstances.

Just because companies have adapted to working from home doesn’t mean that the distractions employees face at home have disappeared – children being off school, partners or roommates sharing the workspace, slow Wi-Fi connections, etc. However, since many of us are now preparing for long-term remote work, we must not neglect company performance. I would like to share with you some of our performance assessment methods at IceHrm, which help us maintain employee motivation and productivity while also taking into account that the situation is far from normal.

When should declining performance be addressed?

Especially in a distributed team, where collaboration is already strained, performance issues from a single team member can quickly affect the overall mood of the team negatively. It becomes noticeable when a colleague is absent, doesn’t answer questions, and doesn’t contribute as a team player. If employees feel that a team member is not putting in effort and is getting away with it, they may see it as permission to do the same. It is important to create an environment where leaders and employees can address problems openly and honestly without being judged. Otherwise, you risk fostering an atmosphere of isolation and frustration.

This problem can often be solved through better communication. Leaders and team members don’t need to know what an employee is doing every second. However, the employee can easily communicate when they are unavailable by blocking off time in the calendar or sending a short message indicating that they are focusing and not available, or that they are taking a lunch break.

If someone falls behind in their work, it is the responsibility of the manager to assess whether the workload is appropriate. Everyone has a certain amount of work to complete. Managers can work with each employee to determine what workload is suitable for their respective role and whether the tasks are being completed. Under the current circumstances, you may need to reassess priorities, identify the most important tasks, or reconsider roles. The goal is to create a work environment where employees feel comfortable taking responsibility for their work and their weaknesses so that managers and employees can work together to develop a plan to get back on track.

Which performance indicators should managers pay attention to for employees working from home?

I think managers usually sense when something is wrong. You can tell if someone is inactive or unresponsive and if the quality or quantity of their work has declined. It's mainly about finding the right approach and actively giving feedback to employees. At IceHrm , and I'm sure also in your company, employees are there to deliver excellent work—not just mediocre performance.

One way to respond to an employee with declining performance is to support them not as a controlling authority, but as a coach. Instead of simply giving them instructions, you should show them how they can adjust their behavior to meet performance requirements. Most employees know what is expected of them, but often don't know how to achieve that goal.

Together, you can identify the problem. Is it productivity? Communication and accessibility? Or difficulties in handling stress? Once you know the cause of the employee's performance issues, you can work together to develop solutions. An overview of the individual steps:

• Identify the problem.  
• Take part in the conversation.  
• Support your employee in creating an effective plan.  
• Implement the plan. Then talk to your employee.

How can leaders deal with performance issues caused by factors outside of work?

As mentioned earlier, employees are currently facing many additional pressures and distractions. Therefore, achieving one hundred percent performance may not be possible, for example, if someone is homeschooling their children alongside work or is under significant stress due to the pandemic. However, it is important that leaders and employees openly discuss the company's expectations and the realistic performance capabilities of the employees.

It is okay to be flexible and to accept that a good employee may only be able to perform at 75 percent of their capacity temporarily. However, try to get as much out of them as possible. Determine which rules and regulations must be strictly followed and which variables can be made flexible so that the employee can reach their full potential. Create a plan together and implement it consistently.

How do we use IceHrm Performance Management?

We send out our performance evaluations twice a year. They help managers to reorient themselves and to get an overview of the current state of employee development. In day-to-day business, it's easy to lose track. The performance evaluation helps to see the bigger picture. It can reveal patterns in employee performance and influence important decisions.  

For the HR department, the focus of the performance evaluation is on these patterns. HR pays less attention to individual performance – we rely on the managers for that. I look for patterns within teams, departments, and the organization as a whole. How consistently you evaluate performance will determine how effectively you can recognize these patterns and use them to adjust your course.

Even though the challenges posed by the pandemic and working from home initially seem to only cause a decline in performance, crises and changes offer opportunities for skill development. Look for creative ways and give your employees the chance to prove themselves and impress you with their adaptability. Don't forget to properly celebrate successes in the process. I know we could all use a few success experiences right now.

Sustaining high-quality performance in a long-term remote or hybrid environment requires managers to shift their focus from direct oversight to coaching, flexibility, and consistent communication. Performance issues, particularly in distributed teams, must be addressed promptly and constructively to prevent team demoralization. By using performance evaluations, even during times of stress, to identify broader organizational patterns, HR can strategically support managers. IceHrm's Performance Management features are essential for this strategy, providing the structure for regular, objective feedback, facilitating the identification of performance patterns across teams, and enabling managers to focus on a coaching-based approach that empowers employees to take responsibility and collaborate on a realistic plan to regain peak performance.