Managing Virtual Teams: Productivity, Performance & Remote Work Challenges

Managing a virtual team effectively can improve productivity by around 5%. It can also help reduce overheads like office space and boost employee retention, two major benefits of flexible or remote working. According to the Global Workplace Analytics Survey (2013), the number of employees working remotely increased by 80% between 2005 and 2013. That growth shows just how much virtual working has evolved over the years.

In my current organisation, remote work isn’t yet the norm. Around 99% of the workforce remains on-site, with the occasional employee or manager working from home once a week. It’s not a widespread practice, but it has been trialled, particularly during the 2020–2022 pandemic.

During that time, remote and hybrid working became essential. However, several challenges came to light that influenced a return to the office. Research by Kankanhalli (2007) highlights common issues in managing remote teams: difficulties measuring productivity without in-person oversight, building team relationships among people who’ve never met, and maintaining trust without regular face-to-face contact.

Still, remote working can absolutely be successful when it’s managed well. Studies have shown that when teams are structured properly and supported with the right tools, overall productivity increases. Often this is due to fewer workplace distractions and more flexible working conditions. Ebrahim (2010) notes that strong leadership in virtual teams can actually turn challenges, like geographical distance or cultural differences, into strengths. When done well, remote collaboration can boost innovation, team performance, and creative thinking.

Key Strategies for Effective Virtual Team Management
To make remote work effective, it’s important to set up strong foundations. That starts with clearly defining goals, responsibilities, and expectations for everyone on the team. Having structured communication channels and agreed ways of working is also key. This includes regular check-ins, team meetings, and clear accountability.

Virtual teams benefit from flexibility, but they still need structure. It’s completely normal to refresh goals and realign roles as the team evolves. Revisiting what’s working (and what’s not), setting new goals, and recognising achievements helps teams stay motivated and engaged, even when working remotely.

Managing a team across multiple locations means everyone has to play a part in finding what works. Success in virtual collaboration often depends on the people involved, which is why hiring the right team members is so important. Look for individuals with strong communication skills, emotional intelligence, independence, and resilience, as these are key traits for successful remote workers.

Measuring Performance in Remote and Hybrid Teams
To create a sense of fairness and transparency, virtual teams should be evaluated using the same criteria as in-office teams. A performance framework, such as a balanced scorecard, can include areas like growth, efficiency, customer satisfaction, and team development. As noted by Kirkman et al. (2002), applying consistent performance metrics helps remove the stigma that remote workers aren’t as productive. In reality, when remote teams are supported properly, they often achieve just as much, if not more, than their office-based counterparts.

Final Thoughts
Remote work and virtual team management come with challenges, but also real opportunities. With the right structure, communication, and mindset, virtual teams can thrive. It’s not about replicating the office, it’s about building new ways of working that are just as effective, wherever your team happens to be.