Do Performance Contract Really Works?

Performance contracts come with quality assurance. It ensures maximum effort into your job to produce the desired results. Failure may end up in retrenchment and success results in promotions and permanence in your job. There is therefore the aspect of reward and punishment where performance contracts are involved.

Performance in the job takes centre stage and at times the welfare of the worker is ignored. The employer often sees the job well done and percieves the worker as a machine. The worker may be sick yet due to the performance contract, he is forced to work. Machines need regular maintenance and service. Humans like machines need service too. Human resource unlike machines work with many factors. Renumeration, mood and enjoying the job are some of them.

Performance contracts however, ensures there is no lazing on the job. Humans are cunning individuals and will do anything to earn much while putting in very little working hours. Officers used to leave their coats on chairs to show they are on the job, yet they have gone to their own leisure. Performance contracts may bind together the employer and employee. One gives the service while the other receives it.

Working smart with or without a performance contract is needed at all times. Never seek a push-over to perform. Bloggers and writers need no prompting (except for news writing). Maybe those new in the field. Working smart makes you set your own targets. You pat yourself on the back when you succeed. Failing means that you sit down and ask yourself where you went wrong. Avoid all the drawbacks and focus your mind to success. Goals should be measurable, for a certain period and achievable.It is only then that one will know where they are coming from, where they currently are and where they are heading to. Performing contracts do try to do the same, but by coercing and forcing.

Most of us work or have worked where performance contracts are signed. The question here is whether they work, do they work in your company? Do they get the desired final product? Are all the stakeholders happy with it? How is it done? There was a company which attempted it and in a couple of months, abandoned it due to massive resignations.

My belief is that it is a lazy way in which CEOs want much done with minimal supervision thus saving much money for the company.


Feature  image/delphinmedia/pixabay/CCO


  1. N Sri Naga Jyothi

    hehehe this is happening in my office too, they do leave their coats and pretend they are in the office and on the job, but infact not they may go on their personal works.

  2. Gil Camporazo

    It depends on the job being performed. The performance contract is best suited to an unsecured job, not in the secured job. Those with PC are working hard, than those who have a permanent job. PC worker is more productive compared to permanent one.

  3. Pat Z Anthony

    It seems to me it would depend on the people agreeing to the contract terms. You know there are people who just don’t really plan to do what they agree to, regardless of the consequences. And, of course, there are those who will not give what they promised to the person who must perform according to the contract.

  4. Jo Pin

    I wish we had that here in the Philippines. There are many efficient workers, but are not being appreciated, and some lazy bones are promoted.

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