Employee Performance Agreements

by Osmond Vitez - Updated September 26, 2017

Performance management allows companies to review employees and determine how well each individual performs in the company. An employee performance agreement paves the way for the company and employees to set specific desires prior to the official employee review process.

Defined

Employee performance agreements help set meaningful, attainable goals and objectives for an employee. The agreement puts both company management and employees on the same page regarding the expectations of employment. The agreement is often beyond a regular job description.

Features

Most performance agreements will set specific goals and objectives for employees. For example, goals can include increasing sales by 10 percent, achieving a tier two bonus, remaining positive during difficult work situations and decreasing operating costs by two percent for the next quarter.

Video of the Day

Brought to you by Techwalla
Brought to you by Techwalla

Purpose

Companies will often use employee performance agreements as a way to encourage employees to govern their own actions. While it can be a risky move if the employee has goals that do not match with the company’s mission, it can allow for a compromise between the two parties that will strengthen the working relationship.

Cite this Article A tool to create a citation to reference this article Cite this Article