yep thats the way to do it. you can also ground the base of the element if you want, though it should be electrically connected to the pot thru the metal threads. grounding the pot is a must.
also to be up to code- the ground wire needs to be able to handle the full amperage of the device, so it should be the same size as your 'hot' wires. if you are using a GFCI, you dont necessarily need to do that as the GFCI *should* trip after only a little current leaks onto that wire, though its still a good idea just in case the GFCI fails.