Performance reviews in virtual teams work best when based on pre-set goals. Results, not location, define success, ensuring fairness and objectivity. Remote employees usually do their best work when they've had a chance to meet the team in person at least once. Employers should recognize this and set aside some funds for a kick-off meeting, and it would be great to have yearly in-person gatherings too

I conduct the entire performance review around 3 basic constructs: 1- (most important)- nothing should be a surprise. Both parties should be aligning continuously on the expectations and the reality, and the employee's needs. The employees' success is as much the managers' success. 2- Listen and learn. Let the employee express their views. If you've done a good job with expectations alignment and feedback, the employee will express self reflection that is likely similar to yours. They also want to ensure they are heard. This is especially important when working remote. 3- It is very important to balance the feedback between objective/metric/example based content and interpretation. This is the basis to align and trust.

As a startup founder managing a fully remote team, I’ve found that performance reviews are not just about evaluation—they’re a key opportunity to align goals, reinforce culture, and build trust in a virtual environment. I schedule check-ins based on each team member’s time zone and workload to ensure they feel supported and not micromanaged. We co-create OKRs with each team member and track progress using tools like Asana or Notion. This helps set clear expectations and enables self-evaluation. In addition to formal reviews, I encourage frequent, informal feedback sessions to address issues early and celebrate wins

I’ve found integrating a storytelling approach into remote performance reviews to be highly effective. For instance, I ask employees to share a “highlight reel” of their year—key achievements, challenges, and lessons learned. This approach turns the review into a reflective and engaging conversation. I complement their insights with a visual timeline I prepare, showcasing their milestones and how their work impacts team goals. This method not only fosters a meaningful dialogue but also reinforces their sense of purpose and contribution. By combining their perspective with tangible data, I create a performance review process that strengthens connections, even in a remote setting, and drives both individual and team growth.