How to Measure Contractor Performance Remotely

Managing remote contractors effectively starts with clear goals and tracking performance. Here's how you can ensure success:

• Set measurable KPIs: Track metrics like task completion, deadlines, error rates, and client satisfaction.
• Use tracking tools: Tools like Time Doctor, Toggl Track, and Asana help monitor time, tasks, and communication.
• Define clear work guidelines: Outline project scope, quality standards, deadlines, and communication protocols.
• Schedule regular reviews: Weekly check-ins, bi-weekly progress reviews, and quarterly evaluations keep contractors aligned.
• Provide actionable feedback: Use examples, set SMART goals, and address skill gaps to improve performance.

Quick Tip: Combine structured feedback with tools and regular communication to boost productivity and quality.

Ready to dive deeper? Keep reading for detailed strategies and tools to manage remote teams effectively.

Use These KPIs to Measure Employee Performance

Define Performance Standards

Setting clear performance standards can significantly improve productivity for remote contractors. Research shows that providing precise metrics and the right tools can lead to a 13% productivity increase.

Set Measurable KPIs

Establishing Key Performance Indicators (KPIs) is essential for aligning contractor efforts with business goals. Focus on specific, actionable metrics rather than overwhelming with unnecessary data.

Here are some common KPIs for remote contractors:

"If you're measuring performance correctly in an office environment, there will be very little difference in how you evaluate a remote employee vs. an office employee. Performance is best determined by outcomes and whether an employee is meeting measurable benchmarks or goals."

• Mike Desjardins, Founder of Cereslogic.com

Once KPIs are set, use structured work guidelines to ensure these metrics are put into practice.

Create Work Guidelines

Work guidelines act as a roadmap for contractors, outlining what’s expected and how to achieve it. GitLab is a great example, using an open-source performance evaluation approach that promotes accountability and trust.

Key components of effective guidelines include:

• Project scope: Detailed descriptions of tasks and deliverables
• Quality standards: Clear criteria for acceptable work
• Timeline expectations: Defined deadlines and milestones
• Communication protocols: Specified channels and response times
• Reporting requirements: Frequency and format for progress updates

Share Requirements Clearly

Communicating expectations clearly is crucial for remote contractor success. Apple Inc. has demonstrated that well-defined guidelines can enhance product development timelines by up to 30%, using metrics like collaboration rates and issue resolution times.

"When handing out tasks to individuals on a virtual team, it's important that you clearly express your expectations. Your explanation should include deadlines and specific details about the task itself."

• David Schoenbeck, Business Coach

To ensure clarity:

• Use video meetings to discuss tasks in detail
• Provide written documentation for reference
• Make resources easily accessible
• Schedule regular check-ins to address questions
• Utilize project management tools to track progress

Effective communication and structured guidelines ensure that remote teams stay aligned and productive.

Use Performance Tracking Tools

Tracking tools have become a key part of managing remote contractors, offering precise performance measurements and promoting transparency. In fact, in 2020, 80% of U.S. businesses adopted remote work monitoring tools.

Time Management Software

Time tracking software helps businesses understand work hours and productivity trends. Here's a quick comparison of some top-rated tools:

For example, Sweat+Co used Toggl Track to identify inefficiencies in contractor management, leading to a 20% boost in profitability. While time tracking is crucial, task management systems help keep projects on track.

Task Management Systems

Task management tools ensure teams stay accountable and projects move forward. Here are two popular options:

• Asana: Known for its project organization and deadline management, though it has limited built-in time tracking. Pairing it with dedicated time tracking tools can fill this gap.
• ProofHub: Costs $89 per month (billed annually) and includes features like project planning, custom workflows, time tracking, and team collaboration tools.

Team Communication Tools

Effective communication is vital for remote teams. Slack, for instance, offers:

• A 47% boost in team productivity
• Time savings of 97 minutes per week with Slack AI
• Integration with over 2,600 apps for streamlined workflows

When choosing tracking tools, look for ones that provide:

• Support for compliance across multiple countries
• Integrated payments in various currencies
• Automated onboarding processes
• Built-in time and expense tracking
• Easy integration with existing systems

These features can make managing remote teams more efficient and effective.

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Schedule Regular Reviews

Regular reviews are key to managing remote contractors effectively. In fact, 43% of engaged employees receive weekly feedback, which helps maintain productivity and alignment.

Set Up Regular Meetings

Here’s a framework for scheduling productive meetings with contractors:

For example, Sara Holtz from Ellie Mae increased meeting frequency to identify issues early and reallocate resources when needed.

After each meeting, collect feedback to better understand contractor needs and challenges.

Gather Team Feedback

Gathering feedback from multiple sources provides a well-rounded view of contractor performance. Companies that act on feedback see twice the engagement rates and 14.9% lower turnover compared to those that don’t. Here are some effective strategies:

• Use project management tools to track task-specific feedback.
• Conduct 360-degree reviews with input from team members.
• Request self-assessments before review sessions.
• Create dedicated channels for ongoing feedback.

Compare Results to Goals

Use these reviews to align qualitative feedback with your key performance indicators (KPIs). This approach gives a clearer picture of contractor performance. Here’s how you can measure and track results:

Sirmara Campbell, CHRO at LaSalle Network, successfully applied this method to help a remote contractor adjust to virtual work. By setting clear expectations and tracking progress against specific goals, they improved the contractor’s performance through schedule adjustments.

Measure Performance Results

Evaluating the performance of remote contractors involves a mix of hard data and thoughtful analysis. According to Deloitte, 94% of employees show improved performance when given work flexibility.

Monitor Output Metrics

Keep an eye on these key productivity indicators:

These metrics align with the KPIs and guidelines discussed earlier.

"We focus more on priorities than on numeric goals. We set them frequently to adjust those priorities. Productivity is measured by how much progress we make on those priorities in a given time frame."

• Fred Perrotta, CEO of Tortuga

Once output metrics are in place, it’s time to evaluate the quality of the work delivered.

Check Work Quality

Engaged teams tend to outperform others, with research showing they are 23% more productive and profitable.

"Use measurable metrics like deadlines met and quality of work to assess performance objectively."

• Yogi Singh, Recruitment Specialist at Crox RPO

Here are some methods for assessing quality:

• Document everything: Record project processes, decisions, and communications. Shared knowledge bases can help maintain consistency in quality.
• Track quality indicators: Look at error rates, revision requests, and client satisfaction scores. Studies suggest that improved employee productivity boosts customer satisfaction by 18%.
• Gather feedback: Use performance scorecards to collect input from team members, clients, and other stakeholders.

Lastly, monitoring response times can round out the performance picture.

Track Response Times

Response times are a critical measure of reliability.

"Consistent, quality outcomes and positive client feedback are key indicators of a contractor's reliability and competence."

• Prerna Gadekar, Certified HR Professional from IIM-K

Key response time metrics include:

Facilities management software can help track response patterns throughout the work order process. This data can highlight top performers and pinpoint areas for improvement.

Give Feedback and Help

Providing regular and constructive feedback plays a major role in improving the performance and engagement of remote contractors.

Share Clear Feedback

Giving effective feedback remotely requires careful timing and clear delivery. For key discussions, schedule video calls to ensure your tone and message come across as intended.

"When my team knows that I truly care, they are more open to feedback, and it's a really productive conversation." - Emily Lerner Amico, Head of People, Wing

Make feedback actionable by using specific examples and setting SMART goals. Don’t forget to acknowledge achievements along the way. Additionally, regular skill assessments can help ensure contractors continue to grow in their roles.

Find Skill Gaps

Feedback sessions often reveal areas where contractors need additional support or training. Identifying these gaps is essential for targeted development.

Here are some ways to analyze skill gaps:

• Technical Assessment
  Leverage AI tools to measure productivity and track skill improvement.
• Soft Skills Review
  Evaluate communication, teamwork, and project management through peer feedback and client interactions.
• Future Skills Planning
  Pinpoint upcoming industry trends and help contractors build the necessary skills through tailored training programs.

"Professional development is not just for the team; it's a problem-solving tool for the entire organization - it can and should provide a return to the bottom line by solving larger organizational issues and helping to achieve strategic business goals." - Maura Thomas

Build Team Trust

Combining clear feedback with skill development and trust-building strengthens team performance. When employees trust their leaders, engagement rates can rise significantly - by over six times.

Clear Communication Standards

• Schedule routine check-ins
• Document decisions and action items
• Keep messaging consistent

Supportive Leadership

• Assume positive intent
• Offer flexibility when needed
• Publicly acknowledge achievements

Consider adding informal team interactions like virtual coffee breaks or team-building activities. These casual moments can improve relationships and foster better collaboration across teams.

Summary

Key Steps Overview

Here’s a quick look at the main steps:

"Regardless of whether employees are in-person or remote, employees perform when they have clear goals and feel seen, connected to, and supported by their team and manager." - Melissa Kong, Talent Equity Consulting Associate

These steps create a solid foundation for managing performance effectively. Tools like Remotely Talents can take it further by simplifying the process.

How Remotely Talents Supports You

Remotely Talents provides expert assistance to:

• Align performance benchmarks with industry norms
• Implement remote work policies and procedures
• Set up reliable communication channels and feedback systems
• Design custom strategies for tracking and evaluating performance

Their guidance helps businesses maintain strong performance levels while addressing the challenges of remote work.

With their specialized support, you can simplify and refine your performance management approach.

Next Steps

1. Audit Current Systems
   Evaluate your existing performance tracking tools. Identify gaps by combining data-driven metrics with qualitative insights.
2. Choose Implementation Tools
   Adopt project management and communication platforms that fit seamlessly into your workflow.
3. Create Performance Standards
   Develop clear, measurable standards that consider the unique aspects of remote work, focusing on both outcomes and processes.

Related Blog Posts

• Best Practices for Remote Work Policies in 2025
• 7 Steps for Remote Team Performance Reviews
• Ultimate Guide To Building Trust In Remote Teams
• 7 KPIs for Evaluating Remote Employee Performance