Thanks to modern communication technology, millions of employees are now able work from their houses – along with airports, hotel rooms, coffee shops and client sites. Some employees work regularly from a distance, while others spend the occasional day working from home.

As telecommuting (or teleworking) continues to grow in popularity, it delivers clear benefits to both employers and employees. Organizations that offer the alternative work arrangement see it as critical to their hiring and retention strategies. They can attract top talent regardless of geography.

Many employers also recognize the cost benefits of telework. It saves money on office space and real estate, reduces absenteeism costs, and can earn tax credits for reducing pollution and traffic congestion.

Employees who eliminate their commute times have fewer distractions and can maintain a better balance of work and family responsibilities. Both employers and employees say teleworking leads to increased productivity and job satisfaction, lowers turnover, and heightens loyalty and commitment.

Success with the telework trend depends on how it’s used and managed. It’s important to apply it toward the right positions, offer it to the right types of employees, and implement the right infrastructure.

Here are three key practices for managing employees from a distance.

Rule #1: Stay connected.

Coordinating and sharing information becomes much more critical with teleworkers. Informal hallway conversations common in the conventional workplace must now be replaced with planned phone calls and e-mail check-ins.

Managers should schedule regular, intentional times for communication. One-on-one phone meetings and face-to-face appointments should be slotted into the calendar. The frequency will depend on the employees’ responsibilities and is likely to change with the project flow.

Resist the urge to become over-reliant on instant messaging and e-mail, however. While technology makes contact easier, it doesn’t always enhance the communication. Intentions and nuances can be lost in a string of e-mail exchanges. Pick up the phone when information is important or sensitive.

Rule #2: Manage for performance.

Maintaining productivity is the one factor that employers seem to worry about most. When they can’t actually see employees, there’s no way to know for certain whether they’re actually working.

Managing telecommuters requires a shift in mindset, from managing activities to managing for results. It’s critical to establish expectations upfront, along with a measurable approach to productivity. Set benchmarks, guidelines, deadlines, and other performance criteria. And always focus on meaningful outcomes, not how much time the teleworker will spend at a desk.

Rule #3: Build the team.

There’s no denying that an organization’s social network is important to its success. Teleworkers need to be integrated into the workplace to become dynamic members of their teams.

Make sure to establish the channels of communication between teleworkers and their office co-workers, and encourage both job-related exchanges and informal interactions. Two important ways to foster the teamwork connection are by conducting group conference calls and gathering attendance at company meetings and functions. Let your employees submit additional ideas on how they’d like to build a cohesive team.

In today’s global economy, telework is here to stay. By getting comfortable and skillful at managing the alternative work-style, you can leverage it to your organization’s advantage.