Performance Management for Remote Workers: Not “What Are Your Employees Doing?” but Rather “How Are Your Employees Doing?”

The shift to remote and hybrid work has exposed the limitations of traditional performance management systems, which often rely on physical presence or intrusive surveillance rather than outcome-based evaluation. This paper asks how AI-driven performance management can be designed to address the documented challenges of teleworking while safeguarding employee autonomy, fairness, and well-being. The study integrates a comprehensive literature review on AI capabilities with empirical evidence from a sequential mixed-methods study of Canadian public servants, comprising machine learning analysis of over 205,000 tweets, document analysis of federal and provincial teleworking policies, a survey of 176 public servants analyzed using logistic regression, and semi-structured interviews with Government of Canada employees. Grounded in socio-technical theory and the Theory of Planned Behavior, the findings reveal that organizational support, workplace socialization, and attitudes are stronger predictors of teleworking success than digital skills or monitoring, while isolation functions as a measurable risk factor. These empirical patterns are mapped to specific AI capabilities to produce a socio-technical framework organized around three interdependent layers: technological, organizational, and human-centered. The paper contributes an empirically grounded alternative to purely speculative treatments of AI in performance management, offering design requirements derived from what remote workers actually experience rather than from technological possibilities alone.