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How to Develop Performance Based Objectives

Hiring based on performance is a concept that facilitates the evaluation of a person's skills and past performance as a best indicator of how they will perform in the future. If you are committed to hiring the best, use a performance-based approach designed to take the mystery out of the process and identify superior people.

Here's how to get started with performance based objectives.

  1. Define superior performance for the position.

    • Cover all aspects of the job (i.e., task oriented requirements)
    • What type of internal evaluation system do you have in place?
    • At their first review, what will they need to have accomplished in order for you to say they have done a “great” job and been successful?
    • How would you define a superior performer? Who is your top performer? Why?
  2. The objectives must be specific and measurable: When developing specific objectives, consider organizational needs and immediate challenges.

    • Training and development
    • Technical needs
    • System or process needs
    • Existing or potential problem areas
    • Examples of measurable objectives: Increase sales by 5% within 9 months or Increase department retention by 22% within the first year.
  3. The objectives must be action oriented and defined by results.

    • Hiring on performance is based on the “doing skills”  or application of the having skills in action oriented activities. Are the results realistic considering the existing challenges, business climate, or company resources?
  4. All objectives must be time based.

    • Align the time basis with the internal evaluation time periods.
  5. Objectives should be prioritized and sequenced.

    • What are the immediate or existing challenges?
    • What results are most critical to the outcome of success?
    • Sequence in relation to the time basis of the objectives.

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