Setting employee goals is one of the ways to turn an average performer into a top performer. When done correctly, work development goal setting can positively impact sales engagement and the performance of your teams in general. In our New Rules of Engagement® research, we found employees who set goals are 14.2 times more likely to be inspired at work.

Goal setting for employees is not a one-and-done task, rather it’s a process which, if applied correctly, can lead to improved sales results and organisational commitment. Employees with goals are 3.6 times more likely to be committed to their organisation. More specifically, they’re 6.7 times more likely to feel proud of their organisation and 6.5 times more likely to recommend their organisation as a great place to work.

Before we dive into the findings of our research, we’ll first take a closer look at why effective employee goals are important and provide you with some useful tips on how to set them.

• What is goal setting for employees?
• Why is setting goals for employees important?
• What are SMART goals?
• SMART goal examples
• Tips for setting goals for employees

What’s goal setting for employees?

Setting goals for employees is a strategic process that involves defining clear, specific, and achievable objectives for individuals or teams within an organisation. In turn, this aligns employee efforts with the broader goals of the organisation, enhancing performance, and driving personal and professional growth.

Why’s setting goals for employees important?

Increased motivation and engagement

Setting goals for employees helps to keep them motivated by encouraging a culture of accountability and progress tracking. By setting your employees clearly defined goals, it gives them a sense of purpose and direction. With these goals in place, employees are likely to feel more motivated and engaged in the workplace when they know what they’re working towards and when they can see the progress they’re making.

Improves personal and professional growth

When setting goals for your employees this often involves taking on new challenges which helps employees to develop new skills and competencies. Developing and learning these workplace skills benefits both employees and the business as a whole by enabling progression, promotions, and the skill set of your workforce.

Encourages constructive feedback

When employees and line managers work together to formulate these goals, it encourages an environment of constructive feedback. Regular goal reviews not only provide opportunities for constructive feedback for employees but also help the business to understand the pain points and challenges of their employees, encouraging the adoption of additional training programmes and support when needed.

Boosts morale and job satisfaction

When employees achieve their goals, it provides a sense of accomplishment, which can boost morale and job satisfaction. Furthermore, businesses that tie in additional rewards and recognition programmes also see further enhancements with job satisfaction and employee appreciation, helping to create an emotional connection between you, them, your business, and your brand.

Aligns individual and organisational objectives

When employee goals are aligned with your organisation’s strategic objectives it ensures everyone is working towards common aims with aligning interests. Furthermore, this alignment and collaboration across different levels and departments within the organisation can foster greater coordination between teams, encouraging peer-to-peer recognition and helping employees further understand how their contributions add value to the wider objectives of the business.

What are SMART goals?

SMART goals, also known as smart objectives, stands for Specific, Measurable, Achievable, Relevant and Time-bound. Applying this framework to objectives and goals allows individuals to create, track, and accomplish both short and long-term goals.

SMART goal examples

The SMART framework can be applied to many different types of goals, including employee goals, team objectives, and company-wide strategies. Below we’ve provided four examples of SMART goals and broken them down to demonstrate how they meet the criteria of the SMART framework.

Improving customer service skills

Goal: To enhance customer service skills by attending a training workshop, implementing three new techniques, and reducing average complaint resolution time from 48 to 24 hours within the next three months to improve customer satisfaction and loyalty.

• Specific: Enhance customer service skills by learning to handle customer complaints more effectively.
• Measurable: Reduce the average resolution time for customer complaints from 48 hours to 24 hours over the next three months.
• Achievable: Attend a customer service training workshop and implement at least three new techniques learned.
• Relevant: Improved customer service leads to higher customer satisfaction and loyalty, benefiting the company.
• Time-bound: Achieve this goal within the next three months.

Increasing sales

Goal: To increase sales of the company’s flagship product by 15% within six months. This will be done by utilising existing sales strategies, attending additional training sessions, and using CRM software to track progress.

• Specific: Increase sales of the company’s flagship product.
• Measurable: Boost monthly sales figures by 15% within the next six months.
• Achievable: Utilise existing sales strategies, attend advanced sales training sessions, and leverage CRM software to track progress.
• Relevant: Increasing sales contributes directly to the company’s revenue and growth.
• Time-bound: Achieve the 15% increase within six months.

Enhancing time management

Goal: To complete daily tasks and projects 20% faster within the next four months by using time management methods such as the Pomodoro Technique and project management software.

• Specific: Improve time management to boost productivity and meet deadlines more consistently.
• Measurable: Complete daily tasks and projects 20% faster within the next four months.
• Achievable: Implement time management techniques such as the Pomodoro Technique and use project management software to keep track of project progress.
• Relevant: Better time management leads to higher efficiency and more reliable project completion.
• Time-bound: Achieve 20% improvement in four months.

Developing a new skill

Goal: To become more confident in using Excel for data analysis projects by enrolling in online courses and dedicating 3 hours per week to this training to reduce project time by 25% over the next three months.

• Specific: Learn advanced Excel functions to improve data analysis capabilities.
• Measurable: Complete an advanced Excel course and apply new skills to analyse and present monthly sales data, reducing analysis time by 25%.
• Achievable: Enrol in an online Excel course and dedicate 3 hours per week to learning and practising.
• Relevant: Advanced Excel skills will enhance data analysis and reporting accuracy, benefiting decision-making processes.
• Time-bound: Complete the course and apply the skills within the next three months.

Tips for setting goals for employees

1. Set challenging but attainable goals

We want to challenge employees, not set them up for failure. That’s why employee goals should be achievable yet challenging. In our latest survey, we found goal setting can improve organisational commitment.

Setting up the right goals also impacts other areas of employees’ experience. For example, sales goals help employees reach their full potential:

• Employees who set goals are 6.5 times more likely to say their job allows them to master skills they need and 7.7 times more likely to say, “My employer provides opportunities for me to develop my skills.”
• Employees who set goals also feel more empowered. Only 42% of employees with no goals feel their ideas are taken seriously, while 80% of employees with goals feel this way.

Sadly, one in three employees (31%) said their manager didn’t establish challenging but attainable goals for them. Whether you lead a sales organisation or are managing just a few on your team, be sure to have goal-setting conversations with your employees. Use existing data to create a baseline from which the employee can stretch and ensure employees can provide input on what their goals should be.

2. Provide performance evaluation and adjustment

A key responsibility for every sales manager is to not only set goals for their employees but to track their performance and provide guidance and evaluation on achieving those goals. There are two components to performance evaluation. First, we should keep employees on track by providing regular evaluations of their progress. Second, goals shouldn’t be set in stone! Depending on changing priorities, goals may change. Our research showed that ongoing performance evaluation and adjustment help sales associates stay on track:

• When supervisors regularly meet with employees to discuss their goals, employees are 5 times more likely to say, “Working here is inspiring.”
• When supervisors adjust goals according to current priorities, employees are 6.7 times more likely to feel motivated to take action at work and 5.2 times more likely to say, “Working here brings out my best ideas.”

Of those we surveyed, about 36% said they don’t receive performance evaluations and adjustments from their supervisors. Remember, annual reviews aren’t the only time we can check in on employee performance. Provide updates to employees so they can see whether they’re on track to hit their goals. Talk to them about wins and hurdles, considering whether goals should be adjusted as a result of either.

3. Provide support and encouragement

Providing support and encouragement is one of the strongest predictors of employees feeling inspired and putting their highest effort into work. In our survey, we found that:

• Employees who receive support and encouragement from their team are 11.6 times more likely to say, “I am motivated to take action at work.”
• These same employees also put more effort into their work. Employees with goals are 8.1 times more likely to say, “I actively look for ways to improve the way I work.”

Encouraging employees to achieve their goals also makes them feel more empowered.

• We found employees who receive support and encouragement from their team are 7.5 times more likely to feel their organisation trusts them with important decisions and are 8.9 times more likely to feel their ideas are taken seriously.

Receiving support and encouragement also impacts perceptions of open-mindedness and inclusion at work:

• Employees who receive support and encouragement from their supervisor are 9.3 times more likely to say leaders listen to their needs and 9.1 times more likely to think their organisation is open to different points of view.

Despite the positive impact of support on motivation, empowerment, and perceptions of their leaders, 32% of employees said they don’t receive support and encouragement from their supervisors. Support can be simple reminders to keep going and that they’re doing well even when things are not perfect. Support can also be more prescriptive, helping employees understand the little steps that will get them to their goals. It’s important to recognise employees when they perform behaviours that will ultimately lead to success, even if they haven’t yet reached their final goal.

4. Align employee goals with larger company-wide objectives and the mission

Supervisors should craft employees’ goals to be in line with the company-wide mission and vision. Employees who can see how their individual goals and responsibilities contribute to the company’s goals are more committed to their organisation, more motivated to work hard for the success of themselves and the company, and feel more accountable for how their performance impacts the company’s success.

• Employees who know how their goals connect to the larger picture feel more inspired, such that they’re 10.1 times more likely to feel motivated to take action at work.
• These employees are more committed, such that they’re 7.9 times more likely to feel proud to work at their organisation and 6.8 times more likely to recommend their organisation as a great place to work.

Similarly, aligning employees’ goals with the bigger picture gives them a stronger sense of meaning and purpose.

• We found employees whose goals align with the organisation’s objectives are 8.9 times more likely to say, “My job matters” and 7.2 times more likely to value the organisation’s mission.

Even though aligning goals with a company’s mission is an important part of goal setting for employees, 23% of employees say they don’t know how achieving their goals impacts the success of the organisation. It’s impossible to talk TOO much about impacting the organisation’s goals and mission. Discuss the impact the employee’s performance will have in the early stages of goal setting. Remind them of the difference they’re making as they progress. Show them the fruits of their labour when goals are achieved. Bring their impact to life by sharing a message from a satisfied customer or showing how your product or service changed someone’s life.