Psychological Closeness: The New KPI For Remote Leaders

Forbes

3 days ago

In the industrial age, productivity was measured by hours spent on the assembly line. If you were physically present, you were assumed to be productive. That made sense when work was tangible and output was visible.
In today's digital and hybrid workplace, this old metric has lost its power. You can be in the same room and still feel disconnected. You can also be thousands of miles apart and feel deeply in sync. The real driver of performance now is psychological closeness — the felt sense of connection between leader and team member — and leaders who measure and build it are setting themselves apart.
Remote work is no longer a temporary fix. At its pandemic peak, more than 60 percent of workdays were done from home. Today, that number has settled at about 25 percent, and it has held steady for two years, according to research from the Stanford Institute for Economic Policy. Only about 12 percent of executives with remote or hybrid staff say they plan new mandates in the coming year, and even high-profile return-to-office pushes have not moved the needle much.
In this environment, managing by physical presence is no longer a winning strategy. What matters most is whether people feel connected, supported, and able to reach their leader. Managing by presence felt is the new competitive edge.
What Is Psychological Closeness?
Professor Olga Epitropaki of Durham University, who has studied remote and hybrid leadership extensively, defines psychological distance as the perceived gap between leader and employee. Closeness is the inverse: a sense of connection that strengthens trust, engagement, and the willingness to go the extra mile.
"You may be far apart in physical space, but perceived closeness grows through empathy or transparency," Epitropaki explains. "Likewise, you can be in the same room and still feel distant if trust is not there."
Her research, conducted in collaboration with Anders Marstand and Ilias Kapoutsis, shows that in remote contexts, combining empathy with a clear big-picture vision reduces psychological distance, leading to better performance and stronger discretionary effort.
Why It Matters for Remote Leaders
Closeness is not just a feel-good factor. It is a performance driver. When employees feel their leader is accessible, attentive, and invested in their success, they are more likely to stay engaged and contribute beyond what is required. This is especially critical in remote and hybrid models, where informal interactions and visual cues are limited.
Leaders who fail to foster closeness risk seeing motivation erode. People may show up to virtual meetings, meet deadlines, and hit targets in the short term, but without a felt sense of connection, they are less likely to bring creativity, energy, and long-term commitment.
How to Build Psychological Closeness
Epitropaki emphasizes that empathy must be intentional. "Even if no one uses the open door, the signal that you are here and available matters," she says. Leaders can create closeness by:
But empathy is only the first step. "There is empathy, and then there is compassion," Epitropaki adds. "Compassion takes it one step further. You act on what you have heard. You follow up. You work to address the concerns that have been raised."
In practice, this means turning listening into visible action: removing a roadblock, championing an idea, or ensuring resources get to the right place. Leaders also need training in empathy, not just management. This includes balancing cognitive empathy (understanding how someone feels) with emotional empathy (sharing that feeling) in a way that shows care without losing objectivity.
The Accountability Connection
Some leaders worry that too much empathy will make it harder to hold people accountable. The opposite is true when it is done well. "Empathy is the first step," Epitropaki says. "It does not mean conflict resolution, or that we cannot have tough, accountability-driven conversations. It is the foundation."
When accountability is built on trust and connection, it feels fair and motivating rather than punitive. Employees are more willing to stretch, take feedback, and commit to improvement.
Making Closeness a Measurable KPI
If you want to lead effectively in a hybrid or remote world, you need to measure closeness as seriously as you measure output. Before you track the numbers, tell your team why their feedback matters and how you will use it. Then ask questions like:
Track these responses over time. Look for patterns across projects or team members, and act on what you learn. When employees see that their input leads to change, closeness grows.
From Soft Skill to Strategic Edge
Psychological closeness is not just a leadership nicety. It is a strategic capability. In a distributed work environment, it fuels engagement, retention, and performance. Leaders who master it gain a competitive advantage, not just in managing today's teams but in attracting tomorrow's talent.
Leadership in the digital age is not about logging the most hours in the same space. It is about being emotionally present, strategically visible, and humanly connected. That is how you build teams that thrive: Not through physical proximity, but through proximity felt.