A performance agreement template is an archive that sets the goals for an employee to achieve by improving his/her performance at work. Such agreements provide encouragement to the employees working in a company or an organization and motivate them to give their best to the company. Performance agreements are considered to be the most appropriate tools to convey this message to your employee that his/her performance needs to be improved and meet a certain level of expertise. Performance agreements are generally issued by the human resource department of any firm or an organization. The main objective behind issuing an employee a performance agreement is to let the employee know exactly what is expected from him/her in a legal and profound way. Another benefit of signing a performance agreement is that legal action can be taken against the employee if the standards are not being met.
Importance of Performance Agreement
A performance agreement starts with the name of the company or the organization along with its official logo as the header of the agreement. The name of the employee is mentioned next, followed by a statement that states that the employee is signing this agreement under certain conditions. The terms and conditions for the work and employee’s performance are also incorporated as part of the performance agreement. The employee must carefully read the terms and conditions and once he/she agrees to them, a place for the signatures is provided at the bottom along with a space for the date. Any changes made in the agreement by any of the concerned parties are informed via legal means to the other party. It is recommended that the validity time period of the agreement must also be mentioned in the agreement.