How to Write Performance Objectives for Employees, Using a Position Agreement
When you’re hiring and managing employees, we use two tools that often get confused: the Job Posting and the Position Agreement. Understanding the distinction between these two documents can unlock smoother hiring; clearer employee-boss communication; and down the road, the signal that someone’s ready for a promotion (or conversely, if you need to let them go). The Position Agreement explains, in detail, what your role needs to accomplish. I can’t underscore its transformative effect enough. So today, I’m going to explain how to write a Position Agreement to outline performance objectives for employees.
Because I promise you: when you approach your Position Agreements with this mindset, it will change the performance of your team. Which will change the performance of your business.
Job Posting’s Purpose
You may recall: a Job Posting is a business’s external-facing document. Its job is to attract qualified and aligned candidates who are excited about the role, your business’s mission, and your culture. Great Job Postings don’t just list responsibilities and experience required; they tell the story of your business and the kinds of people who will thrive with you.
Position Agreement’s Purpose
As always, I want to give credit where credit is due: I first learned about this concept c/o the E-Myth. A Position Agreement is an internal-facing document. It’s a two-way commitment between manager and employee that explains performance objectives for employees in clear, outcome-oriented language.
Where the Job Posting sells the opportunity, the Position Agreement is the contract that defines success.
The document outlines what I like to call: “containers of work” that this role must do, to help your business grow. Just like the Organization Chart, the trick is to forget about the person in the role today (if there’s someone already doing this job). You’re not describing what someone is currently doing; you’re describing what the business needs.
How to Write a Position Agreement
The Position Agreement has 5 sections.
1. Result Statement
The result statement is the overall outcome that the role is responsible for producing. It answers: “If this role is being done well, what is it achieving?”
How to write it
- Make it outcome-based (not task or outpout-based).
- Ensure it’s measurable or observable.
- Stay aligned with the business’s broader goals.
Example
This position is accountable for ensuring that all client projects are delivered on time, on budget, and in alignment with brand standards, resulting in strong client retention and referrals. Success in this role means that you maintain our company standard rate of 95% client retention, and 10% of your clients refer new business to us.
Note: most people stop at “This position is accountable for ensuring that all client projects are delivered on time, on budget, and in alignment with brand standards.” The outcome-based so what? is “resulting in strong client retention and referrals.”
When we’re working with Advisory Practice clients, we’ll then push them to clearly define that outcome. This is so, so important. Think about it this way: when you’re in the rhythm of your Monthly 1-1s, you and your employee need to know if they’re successfully producing the result they’re responsible for. To be the most fair to your employee, you need to ensure this is objective, not subjective. Ensure it’s clean: you can answer is they’re achieving the thing with a simple yes or no.
2. Strategic Work
These are the 3 priorities that must happen to produce the result. Strategic work doesn’t change day to day; it’s the job the role owns. It should be linked to the business’s objectives and priorities.
How to write it
- Ask: “What does this role need to do consistently to drive the result?”
- Keep it focused: no more than 3.
- Think of this as the bridge between vision and action.
Example
- Own and manage project timelines from kickoff through delivery.
- Lead internal creative briefings and client milestone reviews.
- Identify and solve process inefficiencies within the department.
3. Tactical Work
This is the detailed, day-to-day work that supports each strategic item. I also call it the “desk-level” work. What is someone actually doing each day? Each hour?
How to write it
- Break each strategic priority into its 3 most prominent, repeatable tasks.
- Be specific and observable.
- Ask: “What would someone see this role doing on a Tuesday?”
Example
[Strategic work #1] Own and manage project timelines from kickoff through delivery.
- Create and maintain Asana timelines for each project.
- Send weekly status updates to clients.
- Schedule and facilitate internal check-ins.
You’ll repeat this for each Strategic priority; they’ll all have (maximum) 3 tactical priorities. You’ll have a total of 9.
4. Standards
Standards are the rules of the road: how people are expected to show up and how the work gets done.
How to write it
Divide into 2 sections:
- Position-specific standards: What quality and behaviors are expected in this role?
- Company-wide standards: What behaviors reflect your values and culture? Also, what are the assumed standards and expectations in our business?
Example: Position-specific
- Maintains 95% on-time delivery rate.
- Communicates proactively and professionally with clients and internal teams.
Example: Company-wide
- Practices radical responsibility and clear communication.
- Brings solutions, not problems.
- Shows up prepared and on time.
Soon, I’m going to write much more about setting Standards & Expectations. This is something I’ve learned a lot about over the past 7.5 years. And over the past couple months, I’ve gotten many, many (many, ha) questions about it.
5. Signatures
During your first week with your new employee, you’ll review the Position Agreement together. Important note: they should have questions. Afterall, these are the performance objectives for employees. In other words, once they’re up and running, their performance will be measured against this piece of paper (remember the 1-5 rating scale in Monthly 1-1s?). Take the time to thoughtfully review this internal commitment – contract even – together. They will sign, and you as their manager will sign.
This is a shared agreement between employee and manager, that each will do your part to ensure success.
Why the Position Agreement Matters
Position Agreements aren’t just documents. They’re the foundation of a high-functioning team.
They help current employees understand how they fit into the company’s growth, and they give you a fair and objective framework to measure performance. They also serve as the foundation for training, promotion paths, and sometimes exits.
Another clarifying note: this article is written under the assumption that you’re writing first-time Position Agreements for new employees. But this is a mission-critical step for businesses with existing employees too.
When Advisory Practice clients come to us with an already-established team and wanting to grow, we often start with People. First, Org Chart then Position Agreements. Most often, employees are not clear on what their job and responsibilities really are. And in turn, their managers (you, if you’re a small business owner) may be frustrated and unsure how to hold them accountable.
Position Agreements are your link between the business goals and getting the work done in an outcomes-driven way. My favorite endorsement of the Position Agreement comes from Alicia Cook of Revolve Hair Salon:
Who knew this one little piece of paper could be so powerful?
