How to Create a Performance Standard

Performance standards are essential for evaluating employee performance and ensuring that it aligns with organizational goals. They provide clear expectations for employees and help managers assess their performance objectively.

Key Facts

  1. Identify the critical elements: Start by identifying the key areas or tasks that are critical to the job or role. These critical elements should directly contribute to the overall success of the organization.
  2. Determine the performance measures: For each critical element, determine the specific performance measures that will be used to evaluate employee performance. Performance measures should be objective, measurable, and relevant to the job.
  3. Set performance expectations: Establish the performance expectations or targets for each performance measure. These expectations should be challenging yet achievable. Consider factors such as quality, quantity, timeliness, and cost-effectiveness.
  4. Write clear and concise standards: Clearly articulate the performance standards in writing. The standards should be specific, easy to understand, and measurable. Use language that is clear and unambiguous.
  5. Involve stakeholders: Involve relevant stakeholders, such as supervisors, managers, and employees, in the process of creating performance standards. This ensures that the standards are realistic and aligned with organizational goals.
  6. Communicate the standards: Once the performance standards are established, communicate them to the employees. Ensure that employees understand the expectations and how their performance will be evaluated.
  7. Monitor and evaluate performance: Regularly monitor and evaluate employee performance against the established standards. Provide feedback and support to help employees meet the performance expectations.

Remember, performance standards should be reviewed and updated periodically to ensure they remain relevant and aligned with organizational goals.

Steps to Create a Performance Standard

Identify the Critical Elements

Start by identifying the key areas or tasks that are critical to the job or role. These critical elements should directly contribute to the overall success of the organization.

Determine the Performance Measures

For each critical element, determine the specific performance measures that will be used to evaluate employee performance. Performance measures should be objective, measurable, and relevant to the job.

Set Performance Expectations

Establish the performance expectations or targets for each performance measure. These expectations should be challenging yet achievable. Consider factors such as quality, quantity, timeliness, and cost-effectiveness.

Write Clear and Concise Standards

Clearly articulate the performance standards in writing. The standards should be specific, easy to understand, and measurable. Use language that is clear and unambiguous.

Involve Stakeholders

Involve relevant stakeholders, such as supervisors, managers, and employees, in the process of creating performance standards. This ensures that the standards are realistic and aligned with organizational goals.

Communicate the Standards

Once the performance standards are established, communicate them to the employees. Ensure that employees understand the expectations and how their performance will be evaluated.

Monitor and Evaluate Performance

Regularly monitor and evaluate employee performance against the established standards. Provide feedback and support to help employees meet the performance expectations.

Review and Update Standards

Performance standards should be reviewed and updated periodically to ensure they remain relevant and aligned with organizational goals.

Conclusion

Performance standards are a crucial tool for managing and evaluating employee performance. By following these steps, organizations can create clear and effective performance standards that help employees understand their roles and responsibilities and align their performance with organizational objectives.

References

  1. Developing Performance Standards – U.S. Office of Personnel Management
  2. Why and how to create performance standards in an organization (plus examples) – Clockify Blog
  3. What’s the best way to set and share performance standards? – LinkedIn

FAQs

What is a performance standard?

A performance standard is a statement that describes the level of performance that is expected of an employee in a specific role or job. It outlines the specific, measurable, and achievable outcomes that an employee must meet to be considered successful in their role.

Why are performance standards important?

Performance standards are important because they:

  • Provide clear expectations for employees.
  • Help managers assess employee performance objectively.
  • Promote consistency in performance evaluation.
  • Identify areas where employees need improvement.
  • Motivate employees to achieve higher levels of performance.

What are the steps involved in creating performance standards?

The steps involved in creating performance standards include:

  • Identifying the critical elements of the job.
  • Determining the performance measures for each critical element.
  • Setting performance expectations or targets.
  • Writing clear and concise standards.
  • Involving stakeholders in the process.
  • Communicating the standards to employees.
  • Monitoring and evaluating performance against the standards.

What are some tips for writing effective performance standards?

Some tips for writing effective performance standards include:

  • Use specific and measurable language.
  • Set challenging but achievable expectations.
  • Make sure the standards are relevant to the job.
  • Involve employees in the process of creating the standards.
  • Communicate the standards clearly to employees.

How often should performance standards be reviewed and updated?

Performance standards should be reviewed and updated periodically to ensure that they remain relevant and aligned with organizational goals. This may be done annually or more frequently if there are significant changes in the job or the organization.

What are some common challenges in creating and implementing performance standards?

Some common challenges in creating and implementing performance standards include:

  • Identifying the critical elements of the job.
  • Setting performance expectations that are challenging but achievable.
  • Ensuring that the standards are fair and equitable.
  • Communicating the standards clearly to employees.
  • Getting employees to buy into the performance standards.

How can I ensure that performance standards are fair and equitable?

To ensure that performance standards are fair and equitable, it is important to:

  • Involve employees in the process of creating the standards.
  • Make sure the standards are based on job-related criteria.
  • Apply the standards consistently to all employees.
  • Provide employees with opportunities to appeal performance ratings.

How can I get employees to buy into performance standards?

To get employees to buy into performance standards, it is important to:

  • Communicate the standards clearly and frequently.
  • Explain the rationale for the standards.
  • Involve employees in the process of creating the standards.
  • Provide employees with opportunities to provide feedback on the standards.
  • Recognize and reward employees who meet or exceed the standards.