Performance Company Policy Examples

Creating a clear and effective performance policy is essential for building a high-performing and motivated team. A well-defined performance policy helps employees understand expectations, provides managers with a framework for feedback, and aligns everyone with company goals.

In this article, we’ll break down what a performance company policy is, why it matters, and share real-world examples you can adapt for your own organization.

What Is a Performance Policy?

A performance policy is a set of guidelines that outlines how employee performance will be measured, reviewed, and managed. It typically includes expectations, evaluation criteria, timelines for performance reviews, and steps for underperformance or exceptional performance.

Why Your Company Needs a Performance Policy

Here’s why every organization—whether a startup or an enterprise—should have a performance policy:

• Consistency: Ensures fair and uniform performance evaluations.
• Transparency: Helps employees understand what’s expected of them.
• Motivation: Encourages goal-setting and accountability.
• Development: Supports continuous learning and improvement.

Key Elements of a Performance Policy

Before jumping into the examples, here are the key components every performance policy should include:

• Performance expectations
• Review frequency
• Evaluation criteria
• Recognition for high performance
• Process for managing underperformance
• Roles of managers and employees

5 Performance Company Policy Examples

Let’s explore examples from different types of organizations and roles.

1. General Office Staff Performance Policy

Performance will be reviewed semi-annually and assessed based on goal achievement, collaboration, reliability, and adherence to company values. Managers will provide written feedback and hold a 1-on-1 review. Underperforming employees will receive a 30-day improvement plan.

Why it works: It's simple, structured, and encourages regular communication between managers and team members.

2. Sales Team Performance Policy

Sales performance is evaluated monthly based on quota achievement, lead conversion rates, and CRM usage accuracy. High performers (120%+ quota) are eligible for quarterly bonuses. Consistent underperformance may lead to reassignment or training.

Why it works: It focuses on measurable metrics and includes both rewards and accountability.

3. Remote Employee Performance Policy

Remote employees are evaluated quarterly through project completion rates, responsiveness during working hours, and collaboration in async tools like Slack and Notion. Bi-weekly check-ins with managers are mandatory.

Why it works: It addresses unique challenges of remote work while keeping expectations clear.

4. Tech Team (Engineers/Developers) Performance Policy

Performance is reviewed every six months based on code quality, delivery timelines, participation in code reviews, and innovation contributions. Continuous learning is encouraged with access to a learning budget.

Why it works: It blends technical output with team engagement and learning.

5. Startup Performance Policy (Small Team Example)

All employees set OKRs at the start of each quarter. Performance is self-evaluated first, then reviewed with the founder. Flexibility is offered, but consistent misalignment with goals will lead to a coaching conversation.

Why it works: It's lean, founder-led, and encourages ownership.

Tips for Writing Your Own Performance Policy

• Keep it simple: Use plain language. Everyone should understand it.
• Be flexible: One size doesn’t fit all—customize by team or role if needed.
• Use tools: Leverage tools like BuddiesHR to automate performance feedback and keep records.
• Review regularly: Update your policy yearly to reflect changing goals and structures.

Here is an example of a Performance policy:

Final Thoughts

A strong performance policy isn’t just about accountability—it’s about growth. It gives your people a roadmap to succeed and makes performance management less intimidating for everyone involved.

If you're looking to create a culture of continuous feedback and recognition, check out how BuddiesHR can help. Our Slack-native tools make performance conversations feel more human and more frequent—just like they should be.