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Employee Performance Agreement

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EMPLOYEE PERFORMANCE AGREEMENT

Parties and Identification

Employer Name:

Employer Address:

Employee Name:

Employee Address:

Position and Review Period

Effective Date of Plan:   Review Period:

Performance Objectives

The Employee agrees to pursue the following measurable objectives. Each objective will be evaluated according to the Measurement and Evaluation Criteria set forth below.

Measurement & Evaluation Criteria

Performance will be measured against objective-specific metrics and a formal rating scale. Ratings will be documented at scheduled reviews and may affect compensation, incentives, and employment status.

Support, Training and Resources

Employer will make reasonable efforts to provide necessary training, tools, and supervisory support to enable achievement of objectives. Specific training commitments are identified below.

Compensation and Incentives

Bonus/Incentive Eligibility: Employee is eligible for a performance bonus per plan terms.

Performance Improvement and Corrective Action

Should performance fall below acceptable standards, Employer may initiate a documented Performance Improvement Plan (PIP). A PIP will specify deficiencies, expected improvements, timeline, and consequences for failure to meet improvement requirements, which may include reassignment or termination.

The Employee understands that unsatisfactory performance during or after a PIP may result in termination consistent with Employer policy and applicable law.

Employment History

From:    To:

From:    To:

Education

Professional References (3)

Phone:    Email:

Phone:    Email:

Phone:    Email:

Legal Disclosures and Authorizations

At-Will Employment: Unless otherwise provided in a separate written agreement signed by an authorized corporate officer, nothing in this Agreement alters the at-will employment relationship. Either the Employer or the Employee may terminate employment at any time, with or without cause or advance notice, subject to applicable law.

Equal Opportunity: Employer maintains a policy of equal employment opportunity and will not unlawfully discriminate on the basis of race, color, religion, sex, national origin, age, disability, or any other protected characteristic.

Confidentiality: Employee acknowledges and agrees to maintain confidentiality of proprietary and confidential information received during the course of employment. This duty survives termination of employment to the extent permitted by law.

Authorization to Verify Background and Prior Employment: By signing below, Employee authorizes Employer to verify employment history, references, and to initiate background checks to the extent permitted by law. Information obtained will be used for legitimate business purposes related to employment and performance management.

Consent to Verify and Contact Previous Employers: I authorize Employer to contact prior employers and references to verify the information provided and to obtain performance-related information.

Employee Certification

I certify that the information contained in this Agreement and in any supporting materials is true, accurate and complete to the best of my knowledge. I understand that knowingly providing false or misleading information may be grounds for immediate termination. I acknowledge receipt of this Employee Performance Agreement and accept the terms and conditions herein.

I accept the performance objectives and agree to cooperate with Employer in meeting the targets described above: Yes

Miscellaneous Provisions

Amendments: This Agreement may be amended only by a written instrument executed by both Employer and Employee.

Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction in which Employer maintains its principal place of business, to the extent not preempted by applicable federal law.

Employer Representative:

By:

Date:

Employee:

By:

Date:

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What an Employee Performance Agreement Is

An Employee Performance Agreement documents expected duties, measurable objectives, performance metrics, review cadence, and consequences or rewards tied to outcomes. It formalizes commitments between an employer and an employee and can include improvement plans, confidentiality provisions, and compensation changes linked to performance. In the United States such agreements are typically enforceable when signed electronically under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes where adopted, provided the record and signature meet the legal tests for intent, consent, attribution, and retention.

Why use a written Employee Performance Agreement

A written agreement clarifies expectations, reduces disputes, and creates objective measures for reviews and disciplinary actions. It supports consistent HR decisions and documents performance-based pay or corrective steps.

Why use a written Employee Performance Agreement

Who typically completes Employee Performance Agreements

Employers, HR professionals, managers, and employees all take part in drafting and executing performance agreements; the exact participants vary by organization size and structure.

  • HR managers preparing standardized templates and retention policies
  • Direct managers setting role-specific objectives and review schedules
  • Individual contributors signing to acknowledge expectations and improvement plans

Signed agreements should be stored in employee personnel files and made available to relevant managers and payroll or legal teams as needed.

Step-by-step: completing an Employee Performance Agreement

Follow these sequential steps to prepare, review, and finalize a valid agreement.

  • 01
    Draft objectives: Define measurable goals and timelines.
  • 02
    Review with employee: Discuss expectations and record agreed changes.
  • 03
    Obtain approvals: Manager and HR verify terms and compliance.
  • 04
    Sign and store: Capture signatures and retain in personnel record.

Core components of a professional Employee Performance Agreement

A complete agreement combines clear objectives, measurable performance indicators, timelines, consequences and rewards, and signatures for all parties.

Performance Objectives

Specific, measurable targets tied to role responsibilities and expressed with numeric or observable criteria that allow objective assessment during reviews.

Metrics & KPIs

Quantitative and qualitative indicators, measurement frequency, and acceptable performance thresholds to evaluate results consistently across review periods.

Review Schedule

Defined cadence for interim and final reviews, including mid-cycle check-ins and the process for documenting outcomes and appeals.

Improvement Plan

Steps, support, and timelines for corrective action when performance falls below expectations, with clear criteria for success or further consequences.

Compensation Terms

Any changes to pay, bonuses, or incentives tied to performance, including calculation methods and payment timing.

Signatures & Dates

Signature blocks for employee, manager, and HR with dates; include witness or notarization only if required by policy or law.

How to configure an online signing workflow

Set up template fields, authentication, and routing in your e-signature platform to ensure reliable execution.

Field Configuration
Signature Type Electronic signature with audit trail
Authentication Email link or SMS code for signer verification
Routing Order Sequential: employee → manager → HR
Notifications Automated reminders and completion receipts

Digital signing and file format considerations

Choose a platform that supports common document formats and integrates with HR systems for seamless storage.

  • File formats: PDF, DOCX supported
  • Integrations: Connects to HRIS, Google Workspace, Microsoft 365
  • Authentication: Email, SMS, and SSO options

Confirm platform audit trails, retention exports, and access controls before executing agreements to meet records and compliance needs.

Typical e-signing flow for performance agreements

A predictable online flow reduces friction and preserves evidentiary trails for signed agreements.

  • Upload document: HR uploads template and adds fields.
  • Assign signers: Enter employee and approver emails.
  • Authenticate signer: Use email link or SMS code.
  • Complete signing: Signers sign and receive completed copy.

Typical timelines and deadlines to track

Define calendar milestones to ensure timely reviews and compliance with payroll and personnel policies.

Issuance deadline:

Provide agreement before the review period starts.

Review window:

Allow 7–14 days for employee comments.

Signature due date:

Set a sign-by date to finalize terms.

Appeal period:

Specify time to contest ratings, typically 5–30 days.

Record retention start:

Retention begins on the effective date.

Milestones in the agreement lifecycle

Track milestones from agreement setup through archival to maintain governance and auditability.

01

Objective Setting

Employer and employee agree measurable targets at start of period.

02

Mid-cycle Review

Document progress and adjust goals if necessary.

03

Final Evaluation

Assess performance against metrics and decide outcomes.

04

Archival

Store signed agreement in personnel file with retention controls.

Common mistakes to avoid when preparing the agreement

  • Leaving objectives vague or qualitative without measurable metrics which makes enforcement subjective and disputes more likely.
  • Using inconsistent names or job titles that do not match payroll records, leading to administrative and tax reconciliation problems.
  • Failing to set explicit review dates or signature deadlines which delays performance actions and creates recordkeeping gaps.
  • Not documenting improvement steps or support provided when creating a performance improvement plan, weakening HR defenses in disputes.

Security and compliance features to require

Encryption: TLS 1.2/1.3, AES-256 at rest
Audit Trail: Timestamped IP and action logs
Certifications: SOC 2 Type II, ISO 27001
HIPAA: BAA available when required
ESIGN/UETA: Legal framework compliance
Access Controls: Role-based permissions

Risks and legal consequences of flawed agreements

Unenforceable terms: Court may decline to enforce vague obligations
Privacy breach fines: HIPAA or state penalties for PHI exposure
Discrimination claims: Subjective evaluations can trigger EEOC disputes
Tax reporting errors: Incorrect compensation terms affect payroll taxes
I-9 record issues: Employment authorization documentation violations
Contract ambiguity: Leads to litigation costs and damages

How Employee Performance Agreements compare to related documents

Understand differences to choose the right document for objectives, enforceability, and legal protections.

Criteria Employee Performance Agreement Employment Contract Performance Improvement Plan
Enforceable Terms
Primary Purpose ongoing objectives employment terms corrective action
Typical Duration review cycle-based term-based short-term
Compensation Changes sometimes often rarely

eSignature vendor pricing snapshot for signing performance agreements

Compare common vendor starting prices and compliance features to select a platform that meets security and budget needs.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail / Envelope Cap Yes, no envelope cap Yes, 100 envelopes/user/year Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-world examples of digital signing in personnel workflows

Organizations have used electronic signing to streamline performance agreements and maintain compliance across distributed teams.

Optica Ventures (COO)

The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.

  • Rapid adoption helped standardize sign-off across remote managers.
  • Their team reported smoother execution and faster archival of signed HR documents while preserving audit trails for compliance and reporting.

Fertility Centers of Illinois (Founder)

The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company.

  • Integration enabled automated storage and retrieval.
  • The result was fewer missing signatures, reliable audit logs for legal counsel, and easier access to signed personnel records during reviews.

Practical tips for accurate and efficient completion

Adopt clear templates, require measurable metrics, and standardize signing workflows to reduce errors and disputes.

Use clear, measurable goals
Draft objectives with numeric targets, deadlines, and data sources so evaluations are objective and defensible in appeals or disputes.
Standardize templates
Keep a single HR-approved template per role to ensure consistent clauses, reduce drafting time, and simplify auditing.
Capture audit trails
Use an e-signature solution that records timestamps, IP addresses, and signer authentication to support enforceability and investigations.
Coordinate with payroll
Ensure compensation changes documented in agreements are synchronized with payroll to avoid tax and withholding errors.

Typical signers and their roles

HR Manager

Responsible for drafting the template, confirming legal and policy language, managing storage, and overseeing retention schedules. HR coordinates approvals and ensures agreements comply with payroll and benefit rules.

Employee

Reviews objectives, negotiates clarifications with manager, and provides an electronic signature to acknowledge terms. Employees should retain a copy for personal records and verify payroll effects.

FAQs and troubleshooting common questions

Answers to typical questions about enforceability, e-signatures, retention, and updating Employee Performance Agreements.


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