Our research and experience suggest that one of the leading causes of acrimony or dissatisfaction during performance appraisals are the gaps in performance contracting. Performance contracting is the process of developing and documenting performance goals that align individual contributions with organizational strategy. When done properly, it ensures clarity, focus, and accountability helping both the employee and the organization achieve success.

Effective performance contracting is guided by key principles. It must be strategy-aligned, ensuring that every individual goal contributes directly to business outcomes. It should be co-created by the employee and line manager to encourage ownership and shared accountability. These principles make performance management fair, transparent, and result oriented, and eliminate the “tears” sometimes associated with performance appraisals.

To learn more about how to strengthen your performance management system using effective performance contracting we invite you to watch our recorded webinar on “Performance Contracting for HR Professionals” here: https://tinyurl.com/Performance-Contracting-for-HR

Please feel free to share this session with colleagues and associates who are committed to building more effective and performance-driven organizations.