Performance contracting is a strategic management tool aimed at aligning individual efforts with broader organizational objectives through the establishment of clear goals, measurable outcomes, and systematic performance evaluation. In the East African cement industry, employee behavioural well-being is often compromised by hazardous working conditions, which contribute to high levels of occupational stress is estimated that between 10% and 15% of employees in this sector experience heightened work-related stress. This study explored the effect of target setting within performance contracting on employee behavioural well-being at the East African Portland Cement Company (EAPCC). A descriptive research design was adopted, targeting a population of 467 employees from various organizational levels. Using Cochran’s formula, a representative sample of respondents was determined and distributed proportionally through stratified sampling. Data were collected via a structured questionnaire based on a five-point Likert scale. A pilot study involving 10 participants was conducted to ensure the reliability of the research instrument. Descriptive statistics, including means, percentages, and standard deviations, were utilized to summarize the data. Inferential analysis was carried out using correlation and regression techniques. The findings revealed a significant and positive relationship between target setting and employee behavioural well-being (β = 0.433, B = 0.426, p < .001). The study recommends the adoption of inclusive and strategic goal-setting practices, where employees actively participate in defining clear and attainable performance targets. Such involvement is likely to enhance ownership, motivation, job satisfaction, and overall performance within the organization.