Remote work KPIs are metrics that help you measure the performance, productivity, and satisfaction of employees working from home or other remote locations. Key KPIs include outcome-based metrics (goal achievement, output), qualitative indicators (employee satisfaction, engagement), and organizational data (remote work ratio, costs). The key principle: measure results, not presence – trust beats surveillance.

Definition: What Are Remote Work KPIs?

KPI stands for Key Performance Indicator – a metric used to evaluate success in reaching specific objectives. Remote work KPIs are specialized metrics designed to measure how effectively work from home or other remote locations is functioning. They help HR professionals and managers assess performance objectively, without relying on physical presence.

The fundamental difference from traditional office metrics: when working remotely, you cannot simply observe who sits at their desk for how long. Instead, results and goal achievement take center stage. Effective remote work KPIs are therefore always output-oriented and follow the SMART principle: they are Specific, Measurable, Achievable, Relevant, and Time-bound.

Why Are KPIs Important for Remote Work?

According to a study by the Fraunhofer IAO and DGFP, 50% of managers consider their remote employees just as productive as those in the office – while 40% actually report increased productivity. Nevertheless, many HR professionals remain uncertain about how to fairly evaluate performance from a distance.

Remote work KPIs address several challenges simultaneously:

Creating objectivity: Without clear metrics, subjective impressions unconsciously influence performance reviews. Those who are physically present in the office are often perceived more positively – even if their actual performance is no better. KPIs make performance comparable, regardless of work location.

Building trust: Transparent goals and metrics replace micromanagement. Employees know what is expected of them and can work independently. The Institute for Applied Work Science emphasizes: performance is best determined by results, not by attendance.

Optimizing processes: You can only improve what you measure. Remote work KPIs reveal bottlenecks, show which teams work particularly effectively, and identify where support is needed.

The Most Important Remote Work KPIs at a Glance

Productivity Metrics

Productivity metrics measure your employees' output. They form the core of any performance assessment in remote work:

Goal achievement rate: The proportion of achieved goals relative to agreed targets. Example: 8 out of 10 quarterly goals achieved = 80% goal achievement rate. This metric only works if you have previously defined clear, measurable objectives.

Output per time unit: Depending on the role, this can look different – processed customer inquiries, completed projects, created reports, or developed features. Important: always compare against realistic benchmarks and consider task complexity.

Quality metrics: Pure output says nothing about quality. Therefore, supplement with metrics such as error rate, customer satisfaction with the work, or rework required.

Qualitative KPIs

Numbers alone don't tell the whole story. Qualitative KPIs capture how your employees are doing – and this directly impacts productivity and retention:

Employee Net Promoter Score (eNPS): Measures how likely employees are to recommend the company as an employer (scale 0-10). A high eNPS correlates with higher productivity and lower turnover.

Employee satisfaction with remote work: Regular pulse surveys (short, frequent questionnaires) show how satisfied your team is with the remote work situation. Ask about technical equipment, work-life balance, and communication quality.

Engagement score: How strongly do employees feel connected to their work and the company? Low engagement scores are an early warning signal for potential resignations.

Organizational KPIs

These metrics help you manage the remote work model at the company level:

Remote work ratio: The proportion of employees who regularly work remotely relative to the total workforce. The formula: (Number of remote employees / Total number of employees) × 100. This metric is also relevant for tax documentation in some jurisdictions.

Cost savings through remote work: Compare office costs (rent, utilities, equipment) with the costs of remote work solutions (hardware, software, allowances). According to a 2025 CEO survey, 79% of companies report cost savings through hybrid work models.

Collaboration index: How well does collaboration work across distance? You can measure this through meeting frequency, usage of collaboration tools, or feedback from team surveys.

SMART Goals for Performance Measurement

The SMART framework is the most important tool for fair performance measurement in remote work. It helps you formulate goals that are objectively verifiable:

Specific: The goal describes concretely what should be achieved. Not: "improve customer service," but: "reduce average response time to customer inquiries to under 4 hours."

Measurable: You can clearly determine whether the goal has been achieved. Use numbers, percentages, or clear yes/no criteria.

Achievable: The goal is motivating and realistically attainable under given conditions. Overly ambitious goals demotivate; goals that are too easy don't challenge.

Relevant: Consider available resources, time, and external factors. For remote work, this also means: factor in technical equipment and working conditions.

Time-bound: Every goal has a clear timeframe. "By the end of Q2" is better than "soon."

Example of a SMART goal for remote work: "Within 8 weeks, all team members should mark at least 90% of their weekly tasks as completed in the project management tool."

Trust vs. Control: Best Practices

The biggest challenge with remote work KPIs is balancing meaningful measurement with excessive control. Nobody wants to feel constantly monitored – and studies show that excessive surveillance decreases productivity and motivation.

Focus on outcomes, not activity tracking: Measure what comes out at the end – not how many mouse clicks someone makes or how long the screen is active. Tools that monitor computer activities don't provide reliable productivity data and can be legally problematic.

Transparency about expectations: Clearly communicate which KPIs you measure and why. Explain that it's not about control, but about fair assessment and process improvement. According to Fraunhofer IAO, the desire for transparency ranks first among employees to prevent unfairness in work distribution.

Regular feedback instead of annual reviews: In remote work, the informal conversations by the coffee machine are missing. Compensate with regular check-ins where you not only discuss numbers but also ask how your team is doing.

Enable self-assessment: Give employees access to their own KPIs. Those who can see where they stand can take responsibility for course corrections.

Frequently Asked Questions About Remote Work KPIs

What are remote work KPIs?

Remote work KPIs are performance metrics specifically developed to measure productivity, satisfaction, and efficiency in remote work settings. They help managers evaluate performance objectively – regardless of where employees work. A distinction is made between quantitative KPIs (output, goal achievement) and qualitative KPIs (employee satisfaction, engagement).

How do you measure productivity when working from home?

Best practice is to focus on outcomes: define clear goals using the SMART principle and measure whether they are achieved. Concrete metrics include goal achievement rate, completed projects, or quality indicators such as customer satisfaction. Avoid pure time tracking or activity monitoring – these say little about actual productivity.

Are employees more productive when working from home?

Research is predominantly positive: according to Fraunhofer IAO and DGFP, 50% of managers consider remote employees equally productive, while 40% see an increase. About 83% of employees themselves report working more efficiently from home. However, prerequisites include good technical equipment, clear goals, and trust from management.

What is a good remote work ratio?

The remote work ratio describes the proportion of employees who regularly work remotely. It is calculated as: (Number of remote employees / Total number of employees) × 100. A "good" value depends on the industry – in IT, 60-80% is common, while in manufacturing it is naturally lower. What matters is that the ratio aligns with your company goals.

Which KPIs are suitable for hybrid work?

For hybrid models, particularly suitable metrics include: goal achievement rate (independent of work location), eNPS and employee satisfaction (captures well-being), remote work ratio (shows distribution), collaboration index (measures teamwork across distance), and cost metrics (office space vs. remote costs).

Is monitoring employees who work from home legal?

Time tracking is generally permitted and even mandatory for many roles. However, covert surveillance through screenshots, keyloggers, or webcam recordings is legally problematic in most jurisdictions and typically requires explicit consent or works council agreements. The recommendation: rely on outcome-based KPIs rather than activity tracking.

What are SMART goals in remote work?

SMART is a framework for goal-setting: Specific (concretely formulated), Measurable (quantifiable), Achievable (motivating and realistic), Relevant (important for company goals), and Time-bound (with a clear deadline). In remote work, SMART goals enable fair performance measurement without micromanagement.

Conclusion

Remote work KPIs are essential when you want to evaluate performance in distributed teams fairly and objectively. The most important principle: measure results, not attendance. Combine quantitative metrics (goal achievement, output) with qualitative indicators (satisfaction, engagement) to get a complete picture.

Focus on transparency and trust rather than surveillance. Define clear SMART goals, communicate your expectations openly, and give your team the opportunity to work independently. This creates a work culture where remote work not only functions but provides real value for both companies and employees.

Want to objectively assess the potential and strengths of your employees? The Aivy platform supports fair, bias-free competency assessment through scientifically validated assessments – as a complement to outcome-based KPIs. Learn more about objective talent diagnostics

Sources

• Fraunhofer IAO & DGFP (2023). Mobile Work – Social Partner Study 2023. Fraunhofer Institute for Industrial Engineering. https://www.iao.fraunhofer.de
• ifaa – Institute for Applied Work Science (2023). Factsheet: Productivity in Home Office. https://www.arbeitswissenschaft.net
• ifo Institute (2023). Study on Productivity in Hybrid Work. https://www.ifo.de
• Statista (2025). Home Office Statistics Germany. https://de.statista.com
• Deloitte (2022). Flexible Working Study: The Transformation of the Working World. https://www2.deloitte.com