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Drawing up performance contracts for your new employees? Refer to these three documents to make them watertight

by , 07 January 2015
The new year comes with new beginnings.

In the work environment, new beginnings include any new employees who start work soon.

To make sure this new start is smooth you decide to draw up performance contracts. This is because you know by having all your employees sign a performance contract you'll make sure they agree to specific job outputs and targets.

This contract makes sure they know what you expect from them from the start. So if you ever end up at a dismissal for poor performance, you'll have evidence of the agreed performance targets.

While it's a great idea to draw up performance contracts, many employers fail to make them effective.

The reason?

They use the wrong documents.

Don't be like these employers.

Refer to the three documents below to make sure you draw up watertight performance contracts for your employees.

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Referring to these three documents will help you draw up effective performance contracts

The Practical Guide to Human Resources Management says you must refer to the following documents to determine the content of the performance contract:
1. Your employee's job description

As the site, unfair.com.au explains, a job description details why a job exists, what the job holder actually does, how they do it and under what conditions they perform the job.
This all important document is essential when you draw up performance contracts.
2. Your company's business plan
In this article, we explain that if you don't focus your employee's efforts on achieving your overall company objectives, that effort goes to waste.
So be sure to refer to your business plan so you can align your employees' job goals to the broader goals of your company. This way, you can optimise your employee's efforts. And ensure a higher level of productivity.
3. Performance standards for employees within the organisation
Performance standards are important when it comes to your employees' development and the role they play in the company. Refer to this document as well when you draw up performance contracts.

When it comes to your performance contracts, always remember these two points

  • You must apply the performance contract to any position that has measurable outcomes and objectives; and
  • Make sure the contract forms the basis of the performance appraisal document (you must review it as per your organisation's performance management system).
Overall, there are five documents you must refer to make sure your performance contracts are watertight. You'll find the last two in the Practical Guide to Human Resources Management. The guide also has a sample performance contract you can use to get this process right.

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