Practical Guide to Goal Setting for Employees: Tips and Examples

Employees have difficulty not due to their lack of motivation, but because they do not know where to concentrate.

According to Gallup, just one out of two employees knows precisely what is expected of them at work. This is why goal setting for employees is important: it connects individual efforts with company priorities and clearly defines success. 

This article is aimed at explaining how to create valuable goals for employees.

What Does Goal Setting Mean for Employees?

Goal setting for employees is the process of defining the outcomes, actions, or skills an employee should achieve or develop within a specific period.

A good goal should state what is to be done, why it is important, how it will be measured, and by what date. Here is an illustration of how to formulate a proper goal instead of saying “improve customer service”:

Increase the customer satisfaction rating from 82% to 88% by the end of Q3.

Employees’ goals can relate to business objectives, job duties, team cooperation, personal skills, and career growth. It is not “What goal should we set?” but “What success does this position require?”

Now, let’s consider a few examples of how this works in practice.

Examples of Employee Goals Setting

Employee goals should be set depending on the job description. The same goals cannot be set for sales personnel, customer success manager, human resource expert, and product managers.

The following examples show how goal setting for employees can be applied across different sales departments and responsibilities. 

Sales Goal

Boost the value of qualified pipelines by 15% in the second quarter by creating at least 20 relevant opportunities per month and keeping CRM information complete.

Customer Success Goal

Boost customer renewals to 90% by the end of the fiscal year through quarterly account reviews and identifying any accounts that are likely to fail early enough.

Marketing Goal

Get 150 marketing-qualified leads in Q3 and ensure the agreed cost per lead and report performance by channel every two weeks.

HR Goal

Decrease the time required to hire key roles from 45 days to 35 days in the next six months without decreasing the candidate quality requirements.

Product Goal

Conduct user research with at least 20 customers and, based on the results, select three product enhancements before the next quarterly plan.

Operations Goal

Reduce order processing errors by 20% over the next four months through identification of the issue patterns and weekly quality checks.

Learning Goal

Finish advanced data analysis class by the end of Q2 and use the skills learned to generate one performance report on a monthly basis.

Goals are quite specific but give employees certain flexibility in reaching their objectives. It is very important to have an appropriate mix of direction and employee ownership when setting goals.

But then how can managers set clear goals that do not limit employees?

How To Establish Goals for Employees

It is necessary for employee goals not only to reflect organizational goals but also to consider employee role, competencies, and areas of development.

Consider Performance From the Global Point of View

Do not rush to make an assessment of performance based only on one numerical criterion. Employee’s goals have to reflect not only his/her organizational performance but also personal, sales team, quality, and behavior.

For example, performance goals for a sales manager may include sales targets, forecast accuracy, and team mentoring.

Develop Goals That Can Be Quantified

Make qualitative dreams quantifiable achievements. Change the “improve communication” goal into “weekly reporting on project status and logging of decisions.”

Quantification should be done not only with numbers but also with milestones, deadlines, quality improvements, or behavior.

Be Realistic About Goals

Employees should find their goals challenging but not impossible to achieve. Think about how much time, authority, resources, and skill they have available.

Moreover, it would be wise to distinguish results that employees can influence and those that they cannot.

Incorporate Personal Growth

Together with performance goals, it will be necessary to set targets related to personal development such as mastering new skills or mentoring others.

As all jobs are different, the goals need to be tailored according to the job itself and not fit into a standard framework.

After goals have been clearly formulated, their significance becomes obvious.

Tips for Setting Goals for Employees

Effective goal setting for employees requires an open and collaborative conversation. The following tips can make the process more practical, consistent, and fair.

1. Goal Alignment With Business Strategy

Individual goals must be in line with the goals of the entire team and organization. The employees need to know how their efforts are tied up with organizational success.

2. Empower Employees to Come up With Job-Specific Goals

It is the employees who understand the problems and possibilities associated with the job. Let them come up with their goals as well.

3. SMART Goals

The goals need to be Specific, Measurable, Achievable, Relevant, and Time-bound.

For example, instead of “improve reporting,” write:

Reduce the time required for monthly reports from three days to one by the end of Q2 without compromising accuracy.

4. Ensure That the Goals Are Achievable

The goals must be difficult but achievable. Assess the capabilities of the employee in terms of their performance, workload, resources, dependencies, and support available before defining them.

5. Establish Goals That Are Similar for Employees Working in Similar Positions

Generally, employees working in similar positions will have similar expectations from them. Differences in terms of experience, territory, workload, or resources may make such exceptions necessary.

6. Reward the Employees for Achievement of Goals

Reward achievement of the goals with appreciation, development opportunities, increased responsibilities, bonuses, or career advancement. Such rewards must be prompt and based on the individual’s accomplishments.

7. Collaborate with Employees Who Do Not Achieve the Goals

In case an employee does not achieve his or her goal, identify the cause of such failure before evaluating their performance. Such an employee may need more guidance or support.

Conclusion

Goal setting for employees brings about clarity, ownership, and alignment. Once the goals link personal duties to organisational goals, employees will be able to focus more on their contributions.

JOP helps organisations align the goals of the company, teams, and individuals and monitor them through the performance cycle. Discover how JOP can improve your goal-setting process.