Creating a Performance Agreement

Before you start:

Ensure you have a clear understanding of the employee's responsibilities, the company's goals, and how the role contributes to the overall picture. Base the performance objectives on SMART goals. Each objective should be:

Specific Measurable Achievable Relevant Time-bound Make sure the goals support the department or organisation's priorities. Select clear performance indicators. Finally, employees are more likely to commit to the process if they have input in setting their goals, so consider engaging in a two-way discussion.

Key elements to include:

Performance goals and objectives

These should be aligned with organisational priorities. Keep the language simple and clear. Avoid making goals too broad or unrealistic. Key Performance Indicators (KPIs)

Select quantitative and qualitative indicators for each objective. Focus on the most impactful goals to avoid overloading the agreement. The employee's input is vital when setting targets. Behavioural expectations

Include company values, as well as expected behaviours in terms of teamwork, leadership, or communication. Employee support

Consider tools, resources, or support from management that the employee may need to succeed. Acknowledge that priorities may shift and agreements should be revisited if needed. Think about the employee's development and their future potential. Review process and frequency

Define how and when progress will be evaluated. Incorporate feedback loops that allow feedback from the manager to the employee and vice versa.