Glossary definition

What are performance objectives?

Employee performance objectives are goals and targets agreed between the employee and their employer.

They help employees understand their role and their contribution to the business, so they can focus on activities, development and progression that contribute to the organisation’s overall goals.

Once the performance objectives are agreed and written down, the employee and their manager use them as a context for prioritising work, assessing progress and making sure they’re doing what’s expected.

They’re used as a framework for regular performance reviews or dialogues.

Attainment of performance objectives may be tied to employees’ rewards or bonuses, promotion opportunities and career development.

Performance objectives are usually designed to be ‘SMART’ – specific, measurable, achievable, relevant and time-bound.

Many forward-looking firms use HR management systems (HRMS) to manage the processes around employee performance objectives, ensuring they’re agreed on time, with clear record-keeping for reviews, achievements and improvement plans.

Sage People live demo

Want to attract the best people, retain your key talent and increase productivity? Get a free demo of Sage People and discover how it can help you achieve your goals.

Find out more