Team Management
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The distributed workforce model: definition and benefits

Published on 
March 30, 2022

The pandemic catapulted the world's workforce into turbulent waters. Virtually overnight, enterprises made a digital transformation to a remote, hybrid, or distributed workforce model. This remote work revolution has utterly transformed the way businesses operate in the 21st century.

Technically, a distributed workforce is more than just a team of remote workers. A distributed team has no geographical limitations for employees and often operates with no physical office.

Instead, it comprises workers who perform their job from different physical locations and time zones. It also includes a core philosophy of many team members working towards a common goal via unified collaboration.

As a manager, how you approach your distributed work model is critical to your company's overall growth and success. In this article, we'll explore the distributed work model and how you can use its core values to your benefit.

The distributed workforce model

What makes the distributed work model so unique?

The pandemic forced many businesses to quickly switch to a distributed or remote workforce. However, as regions began to ease up on restrictions, many companies continued operating under the distributed work model.

A distributed workforce is unique because it doesn't require a business to have a physical location or headquarters. Instead, employees can collaborate and work from all over the globe.

Distributed work environments have become a boon for managers and employees alike, and it's here to stay. According to our latest data report, The State of Employee Experience, from Here on Out, the ideal work arrangement for 75% of respondents is a hybrid model. And less than 10% of people would like to go back to the office full time.

Why is the distributed workforce so important?

The distributed workforce model allows for greater adaptability for organizations. No longer confined to any constraints of physical locations, a properly managed distributed team empowers employees to work with greater flexibility and in more ideal work environments that encourage them to put their very best work forward.

An advantage of the distributed workforce model is that it requires clear communications — be it via the methods of exchanges, time and frequency, types of feedback, or channels of collaboration — all to help establish clear expectations for everyone. With clear expectations, everyone is working towards the same common goal, plus they feel engaged in the work that they're doing!

Here at Officevibe, like many other organizations, the pandemic forced us to work remotely full-time. We have since become a remote-first company and have learned a thing or two about how to keep our remote employee engagement high. Not only do we create tools that strengthen team building, collaboration, goal-setting, and employee engagement — we practice what we preach.

{highlight}

Are you interested in hearing more about our story? Here are 5 steps we took to improve employee engagement in our remote workforce.

{highlight}

What's the difference between remote and distributed work?

You may hear people interchangeably use the terms "distributed work" and "remote work."

The main difference between remote and distributed work is that remote workers usually operate out of a local office in the same time zone but don't always need to be at the office, whereas distributed workers are by default in different geographical locations and are not constrained by time zones.

Here is how the two compare further.

Distributed team vs remote team

Remote and distributed workforces are similar: both operate independently, outside their company's central hub. However, there are fundamental differences:

Remote work

A team of remote workers consists of one or more employees that usually operate in the same state or time zone. Some remote employees will occasionally come into the company's main office and meet face-to-face for their workday.

{highlight}

Example: Employees who work from home a few days a month—or even most of the year—who may also work in-person at company headquarters or satellite offices are remote workers.

{highlight}

Distributed work

This model contains a geographically distributed workforce. Team members can collaborate from multiple locations: at home via video call, a satellite office, or even a local coffee shop.

The distributed workforce model also involves a new way of thinking about and operating a business. It consists of an entire team of remote workers aligned toward the same goal.

{highlight}

Example: A company with no physical location but team members who work remotely around the globe from home offices or public spaces has distributed workers.

{highlight}

Benefits of using the distributed workforce model

Implementing a distributed workforce model can help your business grow and succeed. Let's look at the primary benefits organizations can gain from using this model.

1. Better employee engagement

With a distributed workforce, employees are more likely to become engaged with their work. It offers workers greater autonomy and independence, resulting in happier people with a deeper connection to their work.

Today's advanced technology also gives a distributed team the tools to connect and engage with their leaders and coworkers.

{highlight}

Example: Officevibe's employee engagement solution lets managers or HR (human resources) leaders measure and analyze employee engagement levels. It gives team members a safe space to express questions, concerns, ideas, or suggestions anonymously (if desired), helping them to feel understood and valued.

{highlight}

Overall Engagement Score report from Officevibe
Overall Engagement Score report from Officevibe

2. Increased productivity

In our latest research report on employee experience, more than half of the respondents surveyed said they felt more productive when working from home. Remote employees also take fewer sick days and shorter breaks. This model increased not only productivity during working hours but the quality of work as well.

Remote working can create an environment where employees feel more fulfilled, less stressed, and have greater freedom. And happier, more engaged employees are highly productive. Fortunately, you have an arsenal of practical tools to help you accurately gauge employee productivity and engagement.

One valuable tool for distributed teams is Officevibe's one-on-one meeting software. It lets managers share meeting agendas, take centralized notes, and set actionable goals for employees. So even when your workforce doesn't meet in person, Officevibe promotes regular healthy, honest communication that keeps the conversation going.

3. Expanded talent pool

With a distributed work model, companies have access to talented applicants worldwide. So, managers can hire a remote worker with the ideal skill set rather than settling for a less qualified candidate just because they need to hire nearby.

Conversely, in traditional models and some remote work models, employees must live close to their company's physical office space. That geographical caveat puts restrictions on who can apply for the job.

Remember, just because team members live far from their coworkers doesn't mean they can't communicate with each other. A distributed team member can easily collaborate with coworkers via video conferencing, phone calls, or text messaging.

4. Flexible hours

Working remotely offers freedom and flexibility that traditional work models don't provide. In addition, employees who get to choose their hours often have better time management skills.

Remote work also eliminates the daily commute. With more time spent with family and friends, workers are happier and more productive. Plus, employees can choose the remote locations where they want to work, whether they prefer a coffee shop, kitchen table, or a beach with good wifi!

Flexible work schedules may also allow other activities that a traditional nine-to-five job does not.

5. A healthier work-life balance

Showing up in person for a 40-hour workweek makes it challenging for employees to juggle life's responsibilities. Fortunately, a distributed workforce model helps your staff manage a healthier balance between work and life obligations.

With more flexible hours and less time spent on commute, effectively managing time, work, family, and fun become easier for employees. In turn, this fosters greater satisfaction and fulfillment. As a result, your company will have happier, healthier team members.

6. Improved employee retention and loyalty

Retaining skilled and talented employees is one of the key drivers for companies in today's competitive work environment. One of the most effective ways organizations can improve loyalty and reduce turnover is by implementing a distributed workforce model. Why? Because employees are craving flexibility.

The ideal work arrangement is a hybrid model for 75% of respondents, and less than 10% would like to go back to the office full time

Officevibe survey data

Remote work instills trust in your employees and shows them that you care about them as a person - not just a job position to fill. By offering an environment where they can do their best work, remote work creates an exchange where the employee naturally wants to perform. It also answers some of the non-negotiables for today's employees, like better work-life balance. Employees can meet all their work and life obligations with greater ease, reducing turnover and increasing fulfillment.

7. Attain greater coverage

Are you an international organization with customers all over the globe? If so, a distributed workforce can benefit your organization tremendously. Companies with a distributed workforce can reach people in multiple locations and time zones virtually any time of day.

Providing global coverage when servicing customers lets your business grow and expand faster. Remote work can even create more hours in the day.

{highlight}

Example: A Florida company can operate from 7 a.m. to 7 p.m. without paying overtime by hiring employees in California.

{highlight}

8. Reduce overhead costs

Employees who work in-person need office space to complete their work. Unfortunately, maintaining one or more office locations has prohibitive associated costs. A survey from Global Workplace Analytics found that employees who work at home just half the year can save a company $11,000 annually.

Companies with a distributed workforce can experience cost savings in many different ways, including:

  • The initial cost of purchasing/leasing real estate
  • Rent and overhead costs
  • Energy and power bills
  • Office furniture
  • Office supplies (i.e., paper, pens, cups, toilet paper. etc.)
  • Technology and electronics (computers, phones, tablets, etc.)
  • Janitorial and cleaning services
  • Travel expenses for business trips

9. Effortless growth and faster scaling

Faster scalability is a tremendous advantage for many companies. However, needing a physical office for employees severely limits the expansion of a traditional company. It's not a business model conducive to rapid growth or scaling.

In a distributed workforce model, businesses hire employees from different corners of the world. It doesn't require in-person interviews, either. Instead, holding a video conference is the new norm for collaborating in today's modern work environment. When it comes to remote onboarding, there are even HR solutions, like Softstart, tailored specifically for new employee needs.

10. Diversify your team

A traditional work model limits a manager's hiring capacity to a single geographical location and its people. In a distributed workforce model, employees can work from around the globe. A diverse team results in new ideas, more productivity, and richer company culture.

A diverse workforce also fosters more innovation and ingenuity in your team. With different minds, values, cultures, and experiences, distributed teams are highly skilled and excellent problem solvers.

Distributed teams with diverse backgrounds promote success and growth in an organization. When you stop limiting your hiring pool to one geographical area, your access to diversity grows.

happyteam_officevibe

Distributed workforce model FAQs

What is a fully distributed company?

A fully distributed company has no brick-and-mortar location where employees work face-to-face. Instead, regular team meetings and collaboration occurs using modern technology, like:

  • Video conferences
  • Phone calls
  • Messaging apps
  • Workflow software
  • Business apps
  • Cloud computing
  • AI-powered programs

A distributed model also consists of employees aligned towards a common goal and working autonomously. It creates a diverse environment that stimulates fresh ideas, ingenuity, and effective communication among your team.

How do distributed companies keep in-house employees and remote workers connected?

A distributed company can use various tools to connect workers during their workday. For example, video calls are standard fare for team meetings and collaboration on daily tasks or other projects.

Feedback surveys are another valuable tool for maintaining employee connections and managing a distributed workforce. They allow managers to keep their thumb on the pulse of their team and measure overall satisfaction in their organization.

The ability for employees to connect easily is critical to a company's long-term success. According to Officevibe's Pulse Survey data, 31% of employees wish their manager communicated more frequently with them. With the ability to quickly connect with your team, you can ensure every member feels heard and valued.

What types of tools do you need to switch your company or team to a fully distributed work model?

Making the switch to a fully distributed company can be daunting. However, you have numerous tools at your disposal to help you begin. For example, workflow software, like Officevibe, is a great place to start.

Officevibe allows managers to organize information and connect with employees quickly and efficiently. Its innovative tools increase employee dedication and engagement across the board. You can also integrate Officevibe with your favorite apps to measure and analyze your team's feedback.

Is the distributed workforce model sustainable?

Yes, the distributed workforce model is sustainable. While distributed teams face unique challenges, the benefits outweigh the potential obstacles.

To begin, you'll need the right tools to keep your employees working remotely, connected, and engaged across various locations and even time zones. However, once you develop a remote working model, a distributed team is entirely sustainable for the long term.

{highlight}

Ready to get started? Officevibe helps remote teams work closely even while apart. It's a single platform that helps team leaders tap into how their employees are really feeling and fosters action-oriented one-on-one conversations. Consider it the foundation of your tech toolbox for the future of remote work with a human touch.

{highlight}

From flawed to flawless: 5 steps to leading distributed teams

What's in this article
This is some text inside of a div block.

The pandemic catapulted the world's workforce into turbulent waters. Virtually overnight, enterprises made a digital transformation to a remote, hybrid, or distributed workforce model. This remote work revolution has utterly transformed the way businesses operate in the 21st century.

Technically, a distributed workforce is more than just a team of remote workers. A distributed team has no geographical limitations for employees and often operates with no physical office.

Instead, it comprises workers who perform their job from different physical locations and time zones. It also includes a core philosophy of many team members working towards a common goal via unified collaboration.

As a manager, how you approach your distributed work model is critical to your company's overall growth and success. In this article, we'll explore the distributed work model and how you can use its core values to your benefit.

The distributed workforce model

What makes the distributed work model so unique?

The pandemic forced many businesses to quickly switch to a distributed or remote workforce. However, as regions began to ease up on restrictions, many companies continued operating under the distributed work model.

A distributed workforce is unique because it doesn't require a business to have a physical location or headquarters. Instead, employees can collaborate and work from all over the globe.

Distributed work environments have become a boon for managers and employees alike, and it's here to stay. According to our latest data report, The State of Employee Experience, from Here on Out, the ideal work arrangement for 75% of respondents is a hybrid model. And less than 10% of people would like to go back to the office full time.

Why is the distributed workforce so important?

The distributed workforce model allows for greater adaptability for organizations. No longer confined to any constraints of physical locations, a properly managed distributed team empowers employees to work with greater flexibility and in more ideal work environments that encourage them to put their very best work forward.

An advantage of the distributed workforce model is that it requires clear communications — be it via the methods of exchanges, time and frequency, types of feedback, or channels of collaboration — all to help establish clear expectations for everyone. With clear expectations, everyone is working towards the same common goal, plus they feel engaged in the work that they're doing!

Here at Officevibe, like many other organizations, the pandemic forced us to work remotely full-time. We have since become a remote-first company and have learned a thing or two about how to keep our remote employee engagement high. Not only do we create tools that strengthen team building, collaboration, goal-setting, and employee engagement — we practice what we preach.

{highlight}

Are you interested in hearing more about our story? Here are 5 steps we took to improve employee engagement in our remote workforce.

{highlight}

What's the difference between remote and distributed work?

You may hear people interchangeably use the terms "distributed work" and "remote work."

The main difference between remote and distributed work is that remote workers usually operate out of a local office in the same time zone but don't always need to be at the office, whereas distributed workers are by default in different geographical locations and are not constrained by time zones.

Here is how the two compare further.

Distributed team vs remote team

Remote and distributed workforces are similar: both operate independently, outside their company's central hub. However, there are fundamental differences:

Remote work

A team of remote workers consists of one or more employees that usually operate in the same state or time zone. Some remote employees will occasionally come into the company's main office and meet face-to-face for their workday.

{highlight}

Example: Employees who work from home a few days a month—or even most of the year—who may also work in-person at company headquarters or satellite offices are remote workers.

{highlight}

Distributed work

This model contains a geographically distributed workforce. Team members can collaborate from multiple locations: at home via video call, a satellite office, or even a local coffee shop.

The distributed workforce model also involves a new way of thinking about and operating a business. It consists of an entire team of remote workers aligned toward the same goal.

{highlight}

Example: A company with no physical location but team members who work remotely around the globe from home offices or public spaces has distributed workers.

{highlight}

Benefits of using the distributed workforce model

Implementing a distributed workforce model can help your business grow and succeed. Let's look at the primary benefits organizations can gain from using this model.

1. Better employee engagement

With a distributed workforce, employees are more likely to become engaged with their work. It offers workers greater autonomy and independence, resulting in happier people with a deeper connection to their work.

Today's advanced technology also gives a distributed team the tools to connect and engage with their leaders and coworkers.

{highlight}

Example: Officevibe's employee engagement solution lets managers or HR (human resources) leaders measure and analyze employee engagement levels. It gives team members a safe space to express questions, concerns, ideas, or suggestions anonymously (if desired), helping them to feel understood and valued.

{highlight}

Overall Engagement Score report from Officevibe
Overall Engagement Score report from Officevibe

2. Increased productivity

In our latest research report on employee experience, more than half of the respondents surveyed said they felt more productive when working from home. Remote employees also take fewer sick days and shorter breaks. This model increased not only productivity during working hours but the quality of work as well.

Remote working can create an environment where employees feel more fulfilled, less stressed, and have greater freedom. And happier, more engaged employees are highly productive. Fortunately, you have an arsenal of practical tools to help you accurately gauge employee productivity and engagement.

One valuable tool for distributed teams is Officevibe's one-on-one meeting software. It lets managers share meeting agendas, take centralized notes, and set actionable goals for employees. So even when your workforce doesn't meet in person, Officevibe promotes regular healthy, honest communication that keeps the conversation going.

3. Expanded talent pool

With a distributed work model, companies have access to talented applicants worldwide. So, managers can hire a remote worker with the ideal skill set rather than settling for a less qualified candidate just because they need to hire nearby.

Conversely, in traditional models and some remote work models, employees must live close to their company's physical office space. That geographical caveat puts restrictions on who can apply for the job.

Remember, just because team members live far from their coworkers doesn't mean they can't communicate with each other. A distributed team member can easily collaborate with coworkers via video conferencing, phone calls, or text messaging.

4. Flexible hours

Working remotely offers freedom and flexibility that traditional work models don't provide. In addition, employees who get to choose their hours often have better time management skills.

Remote work also eliminates the daily commute. With more time spent with family and friends, workers are happier and more productive. Plus, employees can choose the remote locations where they want to work, whether they prefer a coffee shop, kitchen table, or a beach with good wifi!

Flexible work schedules may also allow other activities that a traditional nine-to-five job does not.

5. A healthier work-life balance

Showing up in person for a 40-hour workweek makes it challenging for employees to juggle life's responsibilities. Fortunately, a distributed workforce model helps your staff manage a healthier balance between work and life obligations.

With more flexible hours and less time spent on commute, effectively managing time, work, family, and fun become easier for employees. In turn, this fosters greater satisfaction and fulfillment. As a result, your company will have happier, healthier team members.

6. Improved employee retention and loyalty

Retaining skilled and talented employees is one of the key drivers for companies in today's competitive work environment. One of the most effective ways organizations can improve loyalty and reduce turnover is by implementing a distributed workforce model. Why? Because employees are craving flexibility.

The ideal work arrangement is a hybrid model for 75% of respondents, and less than 10% would like to go back to the office full time

Officevibe survey data

Remote work instills trust in your employees and shows them that you care about them as a person - not just a job position to fill. By offering an environment where they can do their best work, remote work creates an exchange where the employee naturally wants to perform. It also answers some of the non-negotiables for today's employees, like better work-life balance. Employees can meet all their work and life obligations with greater ease, reducing turnover and increasing fulfillment.

7. Attain greater coverage

Are you an international organization with customers all over the globe? If so, a distributed workforce can benefit your organization tremendously. Companies with a distributed workforce can reach people in multiple locations and time zones virtually any time of day.

Providing global coverage when servicing customers lets your business grow and expand faster. Remote work can even create more hours in the day.

{highlight}

Example: A Florida company can operate from 7 a.m. to 7 p.m. without paying overtime by hiring employees in California.

{highlight}

8. Reduce overhead costs

Employees who work in-person need office space to complete their work. Unfortunately, maintaining one or more office locations has prohibitive associated costs. A survey from Global Workplace Analytics found that employees who work at home just half the year can save a company $11,000 annually.

Companies with a distributed workforce can experience cost savings in many different ways, including:

  • The initial cost of purchasing/leasing real estate
  • Rent and overhead costs
  • Energy and power bills
  • Office furniture
  • Office supplies (i.e., paper, pens, cups, toilet paper. etc.)
  • Technology and electronics (computers, phones, tablets, etc.)
  • Janitorial and cleaning services
  • Travel expenses for business trips

9. Effortless growth and faster scaling

Faster scalability is a tremendous advantage for many companies. However, needing a physical office for employees severely limits the expansion of a traditional company. It's not a business model conducive to rapid growth or scaling.

In a distributed workforce model, businesses hire employees from different corners of the world. It doesn't require in-person interviews, either. Instead, holding a video conference is the new norm for collaborating in today's modern work environment. When it comes to remote onboarding, there are even HR solutions, like Softstart, tailored specifically for new employee needs.

10. Diversify your team

A traditional work model limits a manager's hiring capacity to a single geographical location and its people. In a distributed workforce model, employees can work from around the globe. A diverse team results in new ideas, more productivity, and richer company culture.

A diverse workforce also fosters more innovation and ingenuity in your team. With different minds, values, cultures, and experiences, distributed teams are highly skilled and excellent problem solvers.

Distributed teams with diverse backgrounds promote success and growth in an organization. When you stop limiting your hiring pool to one geographical area, your access to diversity grows.

happyteam_officevibe

Distributed workforce model FAQs

What is a fully distributed company?

A fully distributed company has no brick-and-mortar location where employees work face-to-face. Instead, regular team meetings and collaboration occurs using modern technology, like:

  • Video conferences
  • Phone calls
  • Messaging apps
  • Workflow software
  • Business apps
  • Cloud computing
  • AI-powered programs

A distributed model also consists of employees aligned towards a common goal and working autonomously. It creates a diverse environment that stimulates fresh ideas, ingenuity, and effective communication among your team.

How do distributed companies keep in-house employees and remote workers connected?

A distributed company can use various tools to connect workers during their workday. For example, video calls are standard fare for team meetings and collaboration on daily tasks or other projects.

Feedback surveys are another valuable tool for maintaining employee connections and managing a distributed workforce. They allow managers to keep their thumb on the pulse of their team and measure overall satisfaction in their organization.

The ability for employees to connect easily is critical to a company's long-term success. According to Officevibe's Pulse Survey data, 31% of employees wish their manager communicated more frequently with them. With the ability to quickly connect with your team, you can ensure every member feels heard and valued.

What types of tools do you need to switch your company or team to a fully distributed work model?

Making the switch to a fully distributed company can be daunting. However, you have numerous tools at your disposal to help you begin. For example, workflow software, like Officevibe, is a great place to start.

Officevibe allows managers to organize information and connect with employees quickly and efficiently. Its innovative tools increase employee dedication and engagement across the board. You can also integrate Officevibe with your favorite apps to measure and analyze your team's feedback.

Is the distributed workforce model sustainable?

Yes, the distributed workforce model is sustainable. While distributed teams face unique challenges, the benefits outweigh the potential obstacles.

To begin, you'll need the right tools to keep your employees working remotely, connected, and engaged across various locations and even time zones. However, once you develop a remote working model, a distributed team is entirely sustainable for the long term.

{highlight}

Ready to get started? Officevibe helps remote teams work closely even while apart. It's a single platform that helps team leaders tap into how their employees are really feeling and fosters action-oriented one-on-one conversations. Consider it the foundation of your tech toolbox for the future of remote work with a human touch.

{highlight}

Equip HR and managers with tools to engage, recognize, and drive performance.

Related content

Employee experience (EX) has become a catch-all phrase — so broad that it often loses meaning. At HRPA Ignite, two of Workleap’s Senior HR Business Partners, Sarah Azadi and Samin Sadeghi, set out to change that. In their fireside chat, they cut through the noise, highlighting what truly drives engagement and performance in today’s workplace.

Their conversation was refreshingly unfiltered. No buzzwords, no vague theories. Just real, actionable insights from two HR leaders who work closely with managers across all functions. The key takeaway? Employee experience isn’t about perks or grand gestures; it’s about continuously evolving to meet employees where they are.

Why are we still talking about EX in 2025? (Spoiler: it’s not a one-and-done initiative)

Employee experience isn’t just about making work more enjoyable. It directly impacts two critical business outcomes: engagement and performance. A positive EX fosters motivation, productivity, and retention. A poor EX leads to disengagement, turnover, and declining results.

The challenge? EX is never static. Organizations evolve, employee expectations shift, and the way we work continues to change. “A common mistake I see a lot of organizations make is thinking they can find a one-time solution or initiative and never revisit their EX again,” Samin pointed out.  

The businesses that lead the way are constantly iterating and improving. But how do you know what truly moves the needle on EX and, ultimately, engagement and performance?

What are the most important elements of EX? HR leaders weighed in

A poll conducted during the fireside chat revealed that growth and development (30%), work environment (26%), and alignment to an organization’s purpose and mission (17%) are the most critical factors of EX. This data highlights a shift from surface-level perks toward deeper needs, something Samin hears about often when conducting exit interviews.

In a recent LinkedIn post, Workleap’s Co-Founder and CEO, Simon De Baene, shared this sentiment, saying:

"What really matters are much simpler, more fundamental things: a clear vision, a well-executed strategy, good ideas, solid talent, the right timing… and above all, alignment. Trends come and go, but the fundamentals remain. That’s what we should build on."

Does engagement equal performance? With a well-rounded EX, it can. Without one, probably not.

The results of our poll matter because engagement and performance don’t happen in isolation. Engagement without alignment leads to wasted effort, while high performance without engagement leads to burnout.  

Organizations must balance both, ensuring employees feel valued and motivated while understanding what success means for the organization, and having a clear vision on how to get there. An employee experience that scores high on all the fundamentals will naturally bridge the gap between performance and engagement. More on this later!

Let's get back to the basics with Samin and Sarah's top 5 tips for a strong EX

During the conversation, Samin and Sarah shared actionable tips HR should prioritize in order to see the biggest improvement in their employee experience. Implementing all would be the best case scenario, but even starting small with one of these tips can have a noticeable impact.

1. Align leaders to a shared leadership philosophy

Leaders directly impact EX, yet organizations often lack a standardized approach to leadership. One way to address this is by aligning leaders from the start with dedicated leadership onboarding. “You can’t assume every leader has the same experience or approach,” Samin said. “It’s important to communicate what it means to be a leader at your organizations.”

That includes making three things crystal clear:

  • How leaders make decisions at your organization.
  • How they manage performance and share feedback.
  • How they communicate with their teams and cross collaborate.

When leaders know what’s expected of them, they’ll be much better ambassadors for your culture. Plus, they’ll nurture teams that feel engaged and have what it takes to perform.  

2. Use data to drive decisions (without overwhelming yourself)

HR teams often struggle with not measuring enough or measuring too much and getting lost in the data. When you’re strapped for time and resources, knowing how to navigate data is fundamental. It helps you focus on the things that matter most and will drive the biggest impact.  

The key is to identify just five or six key EX indicators and track them consistently. “Historical data is your best friend,” Sarah said. “Benchmarks are nice, but looking at trends over time is what really helps you make informed decisions.”  

When HR is data-savvy, they can form stronger partnerships with people leaders by proactively identifying gaps and working with leaders to solve them. For example, tracking early offboarding rates can reveal hidden issues in onboarding or culture misalignment. “If employees leave within six months, something is off,” she noted. “The role, expectations, or work environment may not match what was promised during hiring. Managers and HR can collaborate to fix that for the next hire.”

3. Listen to employees, but more importantly, act on their feedback

Gathering feedback is only half the battle; acting on it is what builds trust. “In hybrid and remote environments, it’s harder to pick up on workplace sentiment,” Samin noted. “HR and leaders need to be intentional about gathering feedback and making meaningful changes based on it.”

Tactics like engagement surveys, one-on-one meetings, informal coffee chats, and stay interviews can provide deeper insights into employee needs. The key is showing employees that their feedback leads to real change. That’s what makes them feel truly valued.  

“If things aren’t working, you want to create a culture where those lines of communication are flowing and everyone is exchanging feedback with one another, because ultimately, they care and want a more positive experience,” Samin emphasized.  

4. Prioritize growth, however it may look

The best way to create disengaged, underperformers is by letting employees feel like they’re stagnating at work. Employees need to see a future for themselves within the organization, but growth isn’t just about climbing the corporate ladder.  

Promotions are great when there’s a strong business need and the right candidate, but new business needs don’t arise every day. And helping someone move on to the next level when neither them nor the business are ready is not exactly a recipe for success. So, what’s the right balance?

Focusing on learning and development is a gamechanger. HR must think about how the organization can support employees to develop their skills, expand expertise, and learn new tech stacks — all of which create new opportunities for career progression.

Sarah highlighted how Workleap enables this through stretch assignments and cross-functional projects, allowing employees to grow laterally when vertical promotions aren’t available.  

5. Bridge the gap between engagement and performance

There’s a common misconception that high engagement automatically leads to high performance. That’s not always the case. “You can have a tight-knit, engaged team, but if they’re not aligned with the business’s goals, their engagement won’t translate into results,” Sarah explained.

On the flip side, a high-performing team can quickly become disengaged if underperformance isn’t addressed. “If one team member is struggling and leadership fails to take action, it can demotivate the rest of the team,” Sarah warned. “Performance impacts engagement just as much as engagement impacts performance.”

By integrating this perspective into leadership alignment and performance discussions, organizations can ensure that engagement translates into business impact.

Final thoughts: EX is everyone’s business

Sarah and Samin left the audience with a simple but powerful reminder: EX is a continuous process that requires collective effort. “We are all employees. We all impact one another, whether as leaders, peers, or colleagues,” Samin said. “It’s important to create a culture where feedback flows freely and people feel empowered to improve their own experience.”

The only constant in EX is change. Organizations that embrace this reality — and use data, leadership alignment, and employee feedback to drive meaningful improvements — will be the ones that see real engagement and performance gains in 2025 and beyond.

Annual performance reviews have long been a cornerstone of workplace culture, but are they serving employees and organizations effectively? In a recent Workleap webinar, our expert panel tackled this question head-on, exploring why traditional performance reviews often fall short and what HR leaders can do to create a more effective, continuous performance management system.  

Featuring insights from Ricky Muddimer, Co-founder at Thinking Focus; Irina Mocanu, Senior HR Advisor at Workleap; and Brian O'Reilly, Performance Management Product Director at Workleap, the discussion left attendees with actionable takeaways for driving meaningful change in their organizations.

Here’s a recap of the key insights and strategies shared during the session.

Annual reviews may be the standard but they’re failing organizations (here’s why!)

Annual reviews have been the default approach for decades, but as workplace needs evolve, many organizations are questioning their effectiveness. During the webinar, we ran two polls to better understand how organizations approach performance management. The results were revealing:

What is your organization's performance review cadence?

  • 66% rely on formal annual reviews.
  • 16% use formal quarterly or monthly reviews.
  • 9% provide informal, ongoing real-time feedback.
  • 9% have no formal process at all.
Poll answers from our recent Workleap webinar, "Why annual reviews fail and how HR can prevent it"

 

How would you rate your current performance review process?

  • Only 3% said it’s "going really well."
  • 19% feel it’s working but could use minor tweaks.
  • 47% admitted it could be improved.
  • 31% said it needs a major overhaul.

Poll answers from our recent Workleap webinar, "Why annual reviews fail and how HR can prevent it"

These results highlight the problem: while annual reviews remain the standard, they often fail to deliver on their promise of fostering engagement and driving performance. “The annual review isn’t the issue in itself,” said Irina Mocanu. “The issue arises when it’s the only touchpoint for feedback all year long.”  

This gap leaves employees feeling blindsided and disengaged. When feedback is only delivered once a year, it’s impossible to address problems early or celebrate successes when they happen.

4 ways to improve your performance management approach

If annual reviews are just one piece of the puzzle, what does an effective performance management system look like? During the discussion, the panel outlined four foundational principles:  

1. Create a regular rhythm of feedback

Regular check-ins between managers and employees are critical for keeping communication lines open. These touchpoints prevent surprises during formal reviews and allow managers to address issues early. Ricky Muddimer emphasized that the frequency of these check-ins should depend on the organization.  

“Rhythm means addressing issues early  — when someone needs a little support, for example — and celebrating successes consistently. Whether it’s daily, weekly, or bi-weekly, find a cadence that works for your team,” he says. “It’s important to do a sense check of how your people are doing so there are no surprises come the annual review”  

2. Establish a compelling "why”

Performance management should feel valuable for everyone involved. As Ricky explained, “When managers and employees view performance management as an opportunity for growth and connection, it becomes something they actively want to participate in.” Employees want to know their managers are invested in their development, and managers need to see these conversations as opportunities to build stronger teams.

3. Keep it simple

Performance management often gets bogged down by administrative tasks and bureaucracy. But the focus should always be on people. Ricky put it best: “Your performance management approach has to be simple and easy to use. It must prioritize people over the process.” Simplicity ensures managers and employees can spend their energy on meaningful conversations, not paperwork.

4. Monitor your approach

A great performance management system isn’t a one-and-done implementation — it requires continuous refinement. As Irina emphasized, “Monitor what works, what doesn’t work, and adapt. If you stop, in three years, you’ll realize your performance management system is out of date.”  

To keep processes relevant and effective, HR teams should regularly assess their approach, gather feedback from managers and employees, and make small, incremental improvements rather than waiting for major overhauls.

Overcoming barriers to continuous feedback

Transitioning from annual reviews to a more continuous feedback model isn’t easy, but the benefits are undeniable. The panel shared their thoughts on the most common challenges organizations face — and how to overcome them.  

Cultural shifts take time

Implementing a new performance management system often requires a cultural transformation. The panelists encouraged HR leaders to be patient with this process: “Start small and implement changes incrementally rather than overhauling the entire system at once. Progress, not perfection, should be the goal.” By starting with small wins, organizations can gradually build a foundation for larger changes.  

Managers need support

One of the biggest barriers to continuous feedback is managers’ reluctance to have difficult conversations — and the HR leaders agreed wholeheartedly in the webinar chat.  

“Often managers aren’t comfortable/haven’t had enough training [on how to have] difficult conversations and giving and receiving feedback,” one attendee shared. “The problem is everything in training sounds great until it has to come out of your own mouth,” said another HR leader.  

To help managers build confidence in performance conversations, organizations need to reinforce training with ongoing support and accountability. As Irina and Ricky pointed out, training alone isn’t enough — HR leaders need to check in with managers regularly to understand their challenges and ensure feedback is meaningful and actionable.  

One approach is setting clear expectations, like Amazon’s leadership principles, which define how managers should foster high-performing teams. Another is directly evaluating managers on how well they implement continuous feedback and whether their team is high-performing. Ultimately, driving this cultural shift requires not only equipping managers but also empowering employees to take ownership of their performance and feedback.  

Prioritizing continuous feedback requires ongoing effort

Many managers, especially leader do-ers juggling multiple roles, struggle to make time for regular check-ins. Day-to-day operations often take priority, making structured performance conversations an afterthought. However, avoiding these discussions can lead to bigger issues down the line.

Managers already spend time addressing problems caused by a lack of clarity. Instead of reacting to issues, a proactive approach — setting clear expectations and providing regular feedback — prevents problems from escalating. Organizations that prioritize frequent check-ins see fewer performance gaps and build stronger, more engaged teams.  

How technology can help

Technology has become an essential tool for streamlining performance management and reducing administrative burdens. Brian O’Reilly shared how Workleap’s tools are designed to make performance management easier and more impactful.  

“Having a central spot to document one-on-ones and goals ensures no progress gets lost or forgotten,” Brian explained. Tools that centralize feedback and provide insights — both quantitative and qualitative — make it easier for managers to focus on meaningful conversations.  

AI also plays a role in enhancing performance management. “One of the major issues of the annual review model is recency bias,” Brian said. “AI, in conjunction with using the right tools and having access to the right performance insights, can help give managers extra context and cognitive load.” This allows managers to consider an employee’s entire body of work rather than focusing on recent events.

Voices from the webinar chat

Throughout the webinar, attendees actively engaged in the discussion, sharing their own challenges and perspectives on performance management. Their insights reinforced the importance of consistency, effective feedback, and balancing accountability with empathy. Here are a few standout comments that resonated:  

  • On leaders being consistent: “My mantra has always been: be fair and consistent in all you do and who you interact with. That goes a long way.”
  • On feedback as an opportunity: “We need to teach people how to have difficult conversations, not just conversations. Start with the positive and position feedback as an opportunity for growth.”
  • On balancing humanity with performance: “There are ways to ensure that people understand they are valued and that it’s human not to be perfect. That notwithstanding, we need to be honest — in strict behavioral terms — about areas of improvement.”

These comments reflect the shared challenges and aspirations of HR leaders striving to make performance management more human and effective. Kick off your performance revamp with these key takeaways  Bringing all these insights together, our panelists shared essential takeaways for HR leaders looking to transition from outdated performance reviews to a more continuous, human-centered approach:  

  1. Redefine performance: Start by defining what performance means in your organization. At Workleap, we focus on two dimensions: behaviors (e.g., embracing change, innovation) and accomplishments (e.g., the impact of work). “Defining performance criteria that align with your culture is essential,” Irina said.
  1. Integrate feedback into existing rituals: Reinforcing continuous feedback doesn’t mean reinventing the wheel. "When you embed continuous feedback sharing into existing ways of working, it becomes a much more natural process and it’s much easier for leaders to build this reflex,” says Irina.
  1. Engage employees and managers: Equip managers with the tools, training, and support they need to have meaningful conversations and empower employees to take ownership of their own growth. It’s important to constantly remind them of your “why,” so they can feel accountable.
  1. Refine and adapt: Gather feedback after implementation to refine the process. As Ricky noted, “This is about progress, not perfection. Set incremental goals and adjust as needed.”

Want to dive deeper? Catch the full conversation and get expert insights on how to transform performance management

The insights shared during this webinar are just the beginning. To hear more about how to navigate cultural shifts, leverage technology, and foster a culture of continuous feedback, watch the full recording.  Transforming performance management isn’t easy, but the rewards — increased engagement, better alignment, and stronger teams — are well worth the effort.  

When you hear "performance review," what comes to mind? As a manager, do you think of it as a once-a-year task that's just part of your checklist? Or perhaps, do you think of it as a laborious process with no clearly useful output?

Rest assured; the performance review process can be utilized strategically and absolutely be done in a way that is structured, effective, and impactful.

In this article, you'll find your ultimate guide to employee performance reviews. We'll walk you through the essential steps involved in conducting effective performance reviews and provide guidance on what a successful review should look like — before, during, and after. When done right, they can contribute to employee growth, development, and higher business performance.

What is an employee performance review?

Let's first cover the basics. At its core, a performance review is a structured process that evaluates an individual's job performance and provides constructive feedback. Performance reviews are an essential part of the performance management process and support goal-setting, monitoring, and accountability.

Traditionally, a performance review has been an annual event, but in the modern workplace, with continuous performance management gaining traction, performance reviews have taken different forms — be it regular check-ins or ongoing feedback to foster employee development and improvement. In this new era of performance management, managers become more like coaches who empower their employees to reach their full potential.

👉 Find our guide to the modern way of conducting performance reviews with insightful tips and case studies to get inspired.

Why are employee performance reviews important?

Performance reviews don't have to be complicated, just as long as you don't undervalue their power either. They offer numerous benefits for both individuals and organizations at every level. They:

  • Improve communication
  • Identify strengths and weaknesses
  • Facilitate goal setting
  • Enhance employee engagement
  • Strengthen employee-manager relationships

By investing in performance reviews, you pave the way for continuous improvement and foster a more positive work culture.

Key elements of an effective performance review

Performance reviews play a crucial role in driving employee growth and development while contributing to higher business performance. To conduct impactful performance reviews, it's essential to incorporate key elements that foster a supportive, collaborative, and ultimately thriving environment.

Here are the key elements of an effective performance review process:

Frequent review cycles

Break away from the anxiety-inducing annual performance review and normalize conversations about performance. Implementing regular review cycles allows for ongoing feedback, ensuring employees stay on track and have the opportunity to grow continuously.

For example, quarterly or monthly check-ins provide timely feedback and help address any performance gaps promptly.

Two-way conversations

Performance reviews shouldn't be one-sided. By involving employees in two-way conversations, you demonstrate that their opinions and insights are valued, fostering a sense of ownership and engagement.

Encourage open dialogue and create a space for employees to share their perspectives, offer suggestions, and actively participate in the review process.

Focused on improvements

Modern performance reviews shift the focus from dwelling on past mistakes to emphasizing growth and development. By adopting a forward-thinking approach, you inspire a growth mindset and create a culture that supports continuous learning and development.

Encourage employees to reflect on their experiences, learn from them, and set goals for improvement.

Transparent and honest

Transparency and honesty are paramount in fostering trust between managers and employees. Establish clear communication channels to ensure employees understand how their performance is being assessed and how feedback will be provided.

Transparency also involves clearly communicating the evaluation criteria and ensuring employees have access to the necessary resources for improvement.

Fair and objective review process

A fair and objective review process is essential for employee morale and engagement. Use standardized evaluation criteria that are consistently applied across the organization. This helps maintain fairness and ensures that employees feel their performance is evaluated on an equal basis.

Objective evaluations foster trust and provide employees with a sense of confidence in the review process.

How to prepare for a performance review

To conduct an effective performance review, managers need to prepare in advance. Here are the key prep steps to get ready:

1. Align on performance evaluation criteria

Performance evaluations require a clear understanding of the criteria and metrics used to assess employee performance. It's essential for managers and employees to have a shared understanding of what constitutes good or poor performance.

For example, you might establish criteria such as meeting project deadlines, demonstrating strong communication skills, or displaying proactive problem-solving abilities. By aligning these criteria, you can ensure fairness and consistency in your evaluations.

2. Gather employee data and examples

To provide meaningful performance feedback, gather relevant qualitative and quantitative data, as well as examples that illustrate an employee's performance.

There are different methods of performance evaluation, all of which can be pooled to build a comprehensive performance picture. Qualitative data can come from employee self-evaluation, peer reviews, or supervisor assessments. Whereas quantitative data can come from sales figures or other productivity metrics.

By collecting a range of data and examples, you'll have a well-rounded view of the employee's performance that considers all factors — not just numbers.

3. Use a performance review template

Templates exist for a reason. They provide a pre-existing structure from which you can build on and customize. They also save you time!

Performance review templates provide a set of targeted questions that guide you through each aspect of the review, ensuring you cover all relevant areas with your employee. Using a template saves prep time and helps maintain consistency across each team member's evaluation. It also ensures that no important topics or questions are overlooked.

Officevibe includes performance review templates designed to make the review process even more streamlined, effective, and data-driven.

A preview of Officevibe's employee performance review template
Use performance review templates in Officevibe.

4. Prepare a meeting agenda

Before the performance review meeting, create a detailed agenda to guide the discussion. Outline the specific topics you want to cover, such as achievements, areas for improvement, and future goals. Consider including specific examples or projects to discuss during the meeting.

Having a clear agenda helps keep the conversation focused and ensures that all important points are addressed. It also shows employees that you have taken the time to prepare and value their performance.

👀 Check out our one-on-one meeting agendas that cover most manager-employee scenarios, including performance reviews, performance improvement plans, career development, and more!

5. Schedule your performance review meeting

Set a date and time for the performance review that works for both you and the employee. Choose a time when you can give your undivided attention and create a comfortable environment for open and honest conversation.

Avoid scheduling the review during particularly busy or stressful periods to ensure you can devote sufficient time and attention to the discussion. Scheduling the meeting in advance demonstrates your commitment to the employee's growth and development.

By following these steps and adequately preparing for the performance review, you set the stage for a productive and valuable discussion with your employees. Effective preparation ensures that you have the necessary information, structure, and focus to provide meaningful feedback and pave the way for future growth.

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How to conduct an employee performance review

Now that you're prepared, let's explore how to conduct an effective performance review. This is the time to engage in a productive conversation that supports employee growth and development.

The following guidelines provide the performance review framework you need to promote employee development, foster positive relationships, and drive organizational success:

1. Set a positive and constructive tone during the review

Approach the review with a supportive and coaching mindset. It's critical to create a safe space for open dialogue, which fosters collaboration much better than when employees don't feel like they have input. Remember that the goal is to empower employees in their future performance by emphasizing what they are capable of rather than reinforcing what they may not be doing well enough.

2. Share positive feedback and recognition

Similar to the compliment sandwich approach, balancing positive feedback with areas for improvement can go a long way. Make sure to share your own feedback and words of acknowledgment to strengthen your manager-employee bond. Additionally, pass on any feedback you received from other colleagues or leaders, which could help the employee feel valued and appreciated.

3. Offer constructive feedback

Discuss any performance challenges or areas of underperformance directly and constructively. By framing things in a constructive way and using specific examples to illustrate your points, you provide more actionable solutions for growth. Navigate difficult conversations with empathy and a focus on finding solutions together.

Need the inspiration to find high-quality feedback? Here are 22 constructive feedback examples and tips to help you deliver feedback that gets results.

4. Give specific examples

By providing specific examples, you can ensure clarity and facilitate productive discussions. Make sure to back up your feedback with concrete examples to make it more impactful and actionable. Contextualizing feedback with current and past performance examples, helps employees understand the specific behaviors or situations that need improvement or reinforcement.

5. Address performance challenges

During the review, address any performance challenges or areas of underperformance directly and constructively. There are many ways to approach poor work performance issues, just remember to lead these conversations with empathy and a focus on finding solutions. By addressing challenges head-on, you can work together with the employee to identify strategies for improvement and growth.

Granted, some conversations are a little bit more difficult than others. Hey, managers are only human. Read our difficult conversation tips to ensure the message (and solution) isn't getting lost in translation.

6. Listen actively

During the performance review, practice active listening to show genuine interest in the employee's perspective. Pay attention to their thoughts, concerns, and aspirations. By actively listening, you create an environment where employees feel heard and valued, fostering trust and engagement.

Active listening is definitely one of those skills that can help anyone in all areas of life — not just at work! So read our tips on how to practice the art of good listening.

7. Define the next steps

Collaborate with the employee to identify actionable next steps. This could look like:

  • Creating a development plan
  • Setting clear goals for improvement
  • Adjust existing performance targets as necessary

By involving employees in the process of defining the next steps, you empower them to take ownership of their growth and development.

Remember, conducting a performance review is not just a one-time event but part of an ongoing performance management system. Ultimately, ensuring continuous feedback and regular check-ins throughout the year helps set, align, and adjust employee goals when appropriate, which contributes to employee growth and success.

What to do after a performance review

The performance review doesn't end with the meeting. Here's what you can do to ensure continuous improvement and growth.

1. Follow up on the next steps

After the performance review, it's crucial to stay involved and provide ongoing support. Follow up on the next steps that were identified during the review. Schedule frequent one-on-ones and other touchpoints to monitor progress and measure results. This demonstrates your commitment to the employee's growth and helps ensure they are on the right track toward achieving their goals.

🤔 Not sure how often to schedule one-on-ones? Find your best formula for one-on-one frequency.

For example, if one of the next steps identified during the review was for the employee to improve their time management skills, you can schedule a follow-up meeting a month later to discuss their progress. During this meeting, you can ask specific questions about their strategies for improving time management, inquire about any challenges they may have encountered, and provide additional guidance or resources if needed.

By following up on next steps, you show that you are invested in your employees' success and provide an opportunity for course correction or further development.

2. Keep the performance conversation going

Embrace the beauty of continuous performance cycles by conducting regular check-ins and one-on-one meetings. These ongoing conversations provide opportunities to discuss progress, address challenges, and provide timely feedback. By maintaining an open line of communication, you can support employees in their growth journey and ensure that performance remains a priority.

For example, you can schedule bi-weekly or monthly one-on-one meetings with your employees to discuss their ongoing projects, address any obstacles they may be facing, and provide guidance or feedback. These meetings create a space for employees to share their achievements, seek guidance on their work, and discuss any new challenges that may have arisen, to assess at your next employee performance review. By keeping the performance conversation going, you demonstrate your commitment to their development and create an environment where continuous improvement is encouraged.

Officevibe supports continuous performance management. This feature provides tools and resources to facilitate ongoing feedback, goal tracking, and one-on-one meetings!

Effective performance review phrases to use in your next review

Crafting meaningful feedback is key to a successful performance review. Here are some examples of performance review phrases, be them appraisals or constructive, to inspire your next review:

  • Creativity: "Your innovative thinking has led to impressive solutions, pushing our team to new heights."
  • Communication: "Your clear and concise communication style has greatly improved team collaboration and project outcomes."
  • Accountability: "You consistently take ownership of your responsibilities, delivering results with a high level of accountability."
  • Productivity: "Your exceptional time management skills and efficient work habits have significantly increased productivity within the team."
  • Collaboration: "Your collaborative approach fosters a positive team environment, encouraging open communication and idea-sharing."
  • Coaching: "Your dedication to mentoring team members has empowered them to grow and excel in their roles."
  • Areas of improvement: "To further enhance your performance, focusing on improving your presentation skills will help you engage stakeholders more effectively."
  • Problem-solving: "Your analytical thinking and resourcefulness have consistently resulted in creative problem-solving and successful outcomes."

Again, following up on any performance feedback with specific examples will make the feedback itself more impactful by giving it context. This will also show the employee you gave the feedback thought. For example, you could pair praise about problem-solving with something along the lines of: "Last month, when we had an issue with project X, you managed to fix this by doing A, B, and C and that ensured we could deliver on time! Thank you."

⭐️ Find more examples of employee feedback that creates an impact, especially relating to more sensitive issues like the need for additional training or failing to meet deadlines, and best practices for delivering them.

Use performance management software

Theoretically, you can master your performance review approach all on your own. Logistically, however, there are ways you can make the entire performance management process infinitely easier for yourself (and your employees).

Performance management software like Officevibe turns the review process into a fun and dynamic aspect of the employee experience. With data-driven features such as goal setting, continuous feedback, and performance tracking, it simplifies, streamlines, and enhances the entire performance review process, making it fair, efficient, and engaging for both managers and employees.

By utilizing performance review software, you can maximize the benefits of performance management, foster employee development, and cultivate a positive work culture.

Elevate growth, engagement, and success with Officevibe

Mastering the art of employee performance reviews is essential for managers looking to drive growth, engagement, and success within their teams. By following the key steps outlined in this guide, you can conduct effective performance reviews that inspire improvement, empower employees, and contribute to overall organizational success.

Remember, performance reviews should be a collaborative and continuous process that prioritizes growth, feedback, and open communication. Embrace the opportunity to support your employees' development and create a culture of excellence!