Employee goal setting: 5 strategies

The benefits of goal setting can’t be overstated. Goals keep employees engaged and motivate them to achieve more than they thought possible.

Clear, measurable goals help people understand their role in the company and align their objectives with organizational priorities. Employee goal setting also helps retain people—particularly if you reward them for their achievements.

Each individual will have unique goals, but you can follow a few proven performance goal-setting strategies to ensure that your team achieves consistent success.

What is employee goal setting?

Employee goal setting is a process in which team members collaborate with their managers to set personal objectives. These targets usually need to be achieved within a specific time frame.

Performance goals may advance organizational goals, personal career aspirations, project work, or individual tasks.

Input from managers and team members is vital in employee goal setting for a few reasons:

• The bigger picture: A good leader sees the broader picture regarding organizational objectives and can help employees align their goals accordingly.
• Productive feedback: Managers can give team members specific feedback on their progress toward achieving performance goals.
• Employee motivation: Team members are more engaged when their managers are involved and interested in their goals. Employee engagement increases productivity, leading to business growth.
• Personalized objectives: Consulting employees instead of setting performance goals for them ensures that team members’ goals are tailored to their needs and capabilities.

Types of employee goal setting

Here are a few performance goal examples you can set with your employees:

Personal growth

These goals may not directly relate to work, but they can boost performance and productivity. Perhaps an employee wants to work on their public speaking. They might take a course on this and then use the skills they learned to present a group project to senior members of the organization.

Role-specific growth

Employees who envision a different role for themselves should set professional development goals. These objectives give them a direction to strive toward. For example, a junior project manager might want to move into a senior role. To achieve this, they could attend training courses and take on more responsibilities in their current position.

Managers need goals, too. An example of setting performance goals for managers might involve exceeding production targets, positioning them to move from a divisional management position to a regional one.

Team collaboration

Setting workplace collaboration goals brings teams closer together and breaks down silos. A more collaborative, positive, and productive workplace helps the team achieve company goals. You can progress collaboration goals with activities that enhance trust and help team members get to know each other better.

Time management

This skill is essential for employees in any position. Time management skills help people prioritize their work, effectively use resources, and improve processes.

Here’s an example: An HR professional struggles to sort through resumes and schedule time to interview potential candidates for a new position while satisfying their other regular duties. A time management course would help them prioritize their work and leverage available resources (e.g., HR software) to get everything done.

Benefits and challenges of employee goal setting

Productivity hinges on setting and achieving goals, but this is easier said than done. Here are some of the benefits of goal setting and the roadblocks that can get in the way:

Advantages of employee performance goal setting

• Ensures staff alignment: Matching employee goals with organizational objectives drives growth. Team members work toward a goal that simultaneously enhances their skills and boosts company performance.
• Promotes engagement: People feel more invested in their work when they know their employer cares about their personal and professional growth.
• Increases employee retention: Uncertain and directionless employees may look for a new opportunity where they know their role. When you set goals together, team members better understand your precise expectations.

Obstacles to employee performance goal setting

• Difficulty aligning objectives: Aligning organizational objectives with individual performance goals isn’t always easy. This is especially true of personal development goals. A team member’s motivations may not immediately relate to the business’s growth.
• Unrealistic or unattainable expectations: Managers may set goals that aren’t achievable. Goals should challenge employees to promote personal growth, but there’s a fine line between difficult and impossible.
• Issues tracking success: A performance goal is only meaningful with metrics. You’ll never know what’s been achieved, when, and how. Nebulous goals don’t benefit employees or businesses because they can’t be replicated or built upon.

How to define goals for employees: 5 strategies

Setting clear, realistic, and measurable employee performance goals is vital for individual and company success. Use this framework to help define goals.

1. Set SMART goals

The SMART goals method quantifies the traits of a good goal. SMART stands for:

• Specific: Defines what, why, and how.
• Measurable: Includes an objective metric of success, such as a percentage change.
• Attainable: Ensures that the performance goal is within reach.
• Relevant: Supports overall objectives.
• Time-bound: Sets a deadline within which the goal must be completed.

A SMART goal example for an employee in sales might be to increase sales revenue by 15% from the last quarter.

2. Look for attainable goals

Unrealistic goals (e.g., increasing sales revenue by 50% for the quarter instead of 15%) can make employees feel unmotivated and overwhelmed. Workers may check out if there’s little chance they’ll satisfy a performance goal.

Instead, find goals that are within reach (but still challenging) to encourage personal and professional growth.

3. Ensure alignment with the company’s general objectives

Aligning company and employee goals empowers employees to actively contribute to the organization’s overall growth. It creates a shared vision for everyone to work toward, fostering collaboration and camaraderie.

4. Set consistent performance goals for employees in similar roles

Employees don’t all need the same goals, but general consistency will maintain motivation and engagement. For example, you shouldn’t ask employees on the same level to achieve wildly different sales targets. This could demotivate both employees—one will be intimidated by their outsized responsibilities, and the other will feel like their manager thinks they’re incapable.

5. Track and measure progress

Hold employees and their managers accountable throughout the goal-achievement process to help team members stay on track and increase the likelihood of reaching objectives. Accountability removes confusion regarding expectations and identifies where help is needed. 

For example, employees could report to their manager about progress on performance goals twice per month and provide a monthly report to their teammates.

Best practices for employee goal setting

Here are a few more tips on how to set goals at work: 

Ensure communication and alignment

Clearly communicate what you expect from employees and the proper steps toward their performance goals. Schedule regular one-on-one meetings to discuss progress and provide guidance.

An open-door policy also enhances communication. Team members don’t need to wait until a calendar meeting to discuss an issue with you.

Conduct regular performance reviews

Schedule quarterly performance reviews to stay updated on employees’ goals. These could be informal—with the employee leading the discussion—or you could ask the employee to fill out a formal performance evaluation document.

Adjust goals when needed

Goals shouldn’t be set in stone. External factors may hinder performance, or the employee’s role may change, making their goals irrelevant. Revisit objectives regularly (e.g., every quarter) to verify that the goals are still SMART.

Offer employee recognition

Acknowledge employees when they’ve achieved performance goals. You could simply tell them you appreciate them or offer an incentive, like a bonus, when their work is outstanding.

Reward your employees’ achievements with Oyster

Setting clear, measurable employee goals fosters growth, improves performance, and drives business success. Leaders should track progress and reward achievements to keep employees engaged and motivated. 

Oyster’s global employment platform makes recognition easy. Learn how Oyster’s Total Rewards can help you provide competitive, compliant compensation and benefits for your international team. 

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.