Goal setting is at the heart of successful performance, but increasingly employees are struggling to articulate goals that will align with the organisation’s mission and help them reach role satisfaction and success.

There is no question that when done well, meaningful and tangible goal setting motivates employees to achieve new levels of performance. It also provides a framework by which workers can look back at the end of the performance cycle and be proud of their progress and achievements.

But has goal setting just become another thing on the employee ‘to do’ list? Are your employees intrinsically motivated in the goal setting process? Do they believe that there is personal benefit to the process? Ask yourself, if your organisation did not mandate goal setting, how many of your team would be doing the work to commit to where they want to be and what it will take for them to get there?

Why are employee goals important?

Setting off on a road trip without a destination in mind, an understanding of potential roadblocks, and what is needed to get there is a frustrating experience. It is a waste of time, resources, and energy. The same can be said for performance - as planning is crucial.

The best goals are those that are created in partnership between the manager and the employee as the process provides a vital opportunity to discuss obstacles, articulate what support will be required and generate the ability to jointly agree on what success looks like.

A current job description and role profile are useful in the setting of performance objectives; however, it is also important to take a more agile approach where current projects, priorities, and resourcing changes can be considered. All individual goals should feed into the broader organisational objectives and be reviewed regularly.

Goals help employers and organisations to achieve more, usually in a shorter time frame. They benefit both parties by providing increased alignment, clear direction, motivation to perform and a framework by which success can be celebrated.

The importance of goal adjustment 

Many businesses roll out similar goals each year, but irrespective of the business climate, it is important to have an agile goal setting process. Even in stable and predictable times, it is a good idea to revisit goals to ensure that they are relevant, attainable and motivating. 

It is recommended that employers ask themselves: 

  • What is happening in the market that would enhance or prevent these goals?
  • What is the most important goal right now? E.g. increase sales; improve innovation?
  • What is considered to be the most critical business goal to achieve? 
  • What goal could be dropped without significant impact? 
  • How do the goals need to be adjusted? 
  • How do they need to be stretched?
  • How do we motivate employees to overcome obstacles to achieve goal success?
  • How do we engage with the employee group to empower them to drive their own goal setting?
  • Are there any parts/locations of the business that need goal amendment due to unforeseen nuances? 
  • Does each goal have the ability to embrace agile performance methodology?

It is imperative that employers adopt transparency and increased communication in the goal setting process. Employee engagement and buy-in is essential for leaders that want to trigger new behaviours and drive positive change. It can be tempting to focus on employee completion rates for goal setting, but if employees are lagging in the process – why? Are you committed to measuring what matters?

It starts with the business

Goal planning starts with the business as this flows down to each team member. Where there is a significant change to the economic climate, there is a key need for the employer to reflect and adjust the overarching goals, mission and objectives. Perhaps the business recently needed to pivot to survive in a challenging climate or an expansion or acquisition has changed the strategic priorities. At the forefront of the cycle organisations are encouraged to consider:

  • What are the critical objectives of the business and what is required at team and individual level to achieve that?
  • What goals need to change at the organisational level?
  • How will employees be engaged with and communicated to?
  • Has anything fundamentally changed in the business that will drive a different focus this financial year?
  • If the business was to focus on three strategic goals; what would they be?
  • Is there something that is no longer possible to achieve? 
  • What should be added or deleted from organisational goals? 

5 ways to set performance goals that matter

Sometimes employers omit to include team members in the goal setting process, and instead mandate goals for employees to pick up and run with. Naturally, this is not recommended and employees will usually want to be a part of setting their own goals. Furthermore, workers are much more likely to take ownership and responsibility for success when they feel included in the process. 

Here are 5 tips for goal setting success:

1. Collaboration is key

Think about any area of life. If you were trying to save money; would you like to be told how much you were able to spend each month or would you prefer to devise a plan that worked best for you? Goals that are devised at the top are more owned by the leader than the person expected to do the work. Instead, focus on making goal setting a collaborative effort to maximise buy in. Bring employees into the conversation early and empower them to set goals that align to the business strategy and inspire them to achieve.

2. Be SMART in the approach

The SMART goal setting philosophy is a tried and tested methodology to increase success and alignment. Working to a Specific, Measurable, Attainable, Relevant and Time-bound framework takes the stress out of goal setting. More detailed information about how you can apply SMART goals can be found here.

3. Don’t ‘set and forget’

The days of setting goals and revisiting at the end of the twelve month period is over. Agile performance management methodologies lead employers to focus more on the ‘goal getting’ instead of just ‘goal setting’. Employees will be more likely to engage with and own their goals when there is the capacity to adjust, realign and even change along the journey.

4. Are we measuring what matters?

Team members may have set goals on a particular work process for years, but is it really something that matters? Are you stuck in the weeds measuring the data or are you more actively engaged with the actions and behaviours that will drive success?

5. Are you creating goals around employee strengths?

Unquestionably, we all need to perform tasks that are not high on our enjoyment list; but what can you do to embrace the strengths and passions of team members? Do you have a team member that loves to be creative? Irrespective of their position – how can you leverage this passion in the goal setting process? Is there a way to include a stretch goal that specifically harnesses creativity? When you play to employee passions, there is a strong chance they will not only meet – but exceed your expectations.

Its time for employees to take the reins

Effective performance management systems utilise goal setting at employee, team and department levels. They create alignment between ‘how and what’ an individual needs to do to help the organisation achieve success. In its simplest form, goal setting creates clarity for employees about what is expected from them whilst improving engagement and productivity.

Goal setting is one of the oldest workforce traditions, but it doesn’t need to be archaic in practice and ‘just another thing employees have to do’. Let’s face it; no one wants to achieve goals on someone else’s agenda, so maybe its time to hand over the reins and let employees set their own path with passion and purpose.

Further information

For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information. Ai Group has an extensive performance management section offering members a range of tools, resources and support to optimise and manage performance. Detailed information on the role that leaders play in performance can be found here.

Join Ai Group today!

Take advantage of more than 150 years of experience actively solving Members’ workplace issues and representing their interests at the highest levels of national and state government. Being a Member of Ai Group makes good business sense. 

Download our brochure to see why you should join and call us on 1300 55 66 77 or visit our Why join page to sign up for a consultation with one of our member representatives.

 

Georgina Pacor

Georgina is Senior HR Content Editor – Publications at Ai Group. She is an accomplished Human Resource professional with over 25 years of generalist and leadership experience in a broad range of industries including financial services, tourism, travel, government and agriculture. She has successfully advised and partnered with senior leaders to implement people and performance initiatives that align to business strategy. Georgina is committed to utilising her experience to create resources that educate and engage and is passionate about supporting members to optimise an inclusive workforce culture that drives performance.