Best Practices: Defining and Managing Goal Agreements


This article uses a practical example to illustrate how you can create and manage goals.

Personio allows individual goals to be created and maintained for each employee profile, plus these can optionally be linked to a performance-based bonus. The performance-based bonus is calculated automatically in this case.

The following diagram provides an overview of the main steps in creating goals. These are explained in more detail below.


Sample use case:

Your sales employee John Doe is paid a performance-based quarterly bonus, which is tied to him meeting certain goals. For Q3/2018, you have agreed on the following goal, which will earn a bonus of €5,000:

  • External sales optimization training
  • Acquisition of 40 new customers

Perform the following steps to enter and subsequently manage these goals in Personio.


General Settings Before the Beginning of the Goal Period

Storing a Performance-Based Bonus

John Doe's performance-based bonus is €5,000. To store this bonus in Personio, first navigate to his employee profile and go to Salary > Edit > Add bonus. Activate the option Goal bonus percentage and enter the maximum bonus, i.e. €5,000. Select the Quarterly interval and enter 01.07.2018 as the Valid from date.



Storing a Goal

Next, still in John Doe's employee profile, navigate to the Performance section and select the Goal option from the drop-down menu on the right-hand side. Define the options Quarterly and Q3 2018 as the intervals for the goal and click on Add.


Next, while in editing mode, create two new KPIs (key performance indicators) for the goals "Attendance at external training" and "Customer acquisition." Activate the Binary option for the first and the Quantitative option for the second KPI. Enter information on the goals and define whether goals should be considered in calculating the bonus for the selected period and if so, define their weights. Save your settings. You can always return to this view to document progress or enter comments.



Documenting Progress During the Goal Period

Let's assume you would like to discuss John Doe's progress toward his goals at some time during the quarter. To do this, create a Feedback meeting in Personio. Go to the Performance tab in John Doe's profile and click on the Feedback meeting option in the drop-down menu on the right-hand side. Select the required Category, e.g. "Development meeting," and a suitable date. Click here to find out how you can create custom Feedback categories.

After the Feedback meeting has been created, you can add participants, specify and change the date and time, set a location, and add internal comments that are not visible to the employee. Change the status from Pending to Planned to have calendar invitations sent out to all participants. Save your settings for the time being. Click here for instructions on how you can have Personio create automatic reminders for Feedback meetings.


Once you have conducted the feedback meeting with John Doe, return to the above view and set the meeting status to Completed. Also document the meeting outcomes by entering free text into the feedback attributes you have previously defined. Optionally upload a document to the scheduled meeting and finalize documenting the meeting by clicking on Save. You'll be able to access the meeting outcomes again at any time.

For further information about creating and managing feedback meetings, please click here.


Settings for Finalizing the Goal Period

At the end of Q3/2018, John Doe attended external sales optimization training and had acquired 50 new customers. Enter the outcomes for the respective KPIs: Next to the goal of attending external training, activate the Achieved check box and also enter the fulfilled tgoal of acquiring 50 new customers.


John Doe has exceeded his customer acquisition goal by 25%. Personio then automatically calculates the correct bonus amount for 125%.

Next, go to the Salary tab. After a one-time confirmation, the payout amount is displayed in the Bonus column of the salary overview. Depending on your settings, this occurs at the end of the bonus period, after the period, or evenly distributed over the period. Click here for further information on this topic.


You can also enter a different amount than the calculated bonus, if required.




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