Employee performance goals are objectives that employers set for their employees to achieve within a limited timeframe. Employee performance goals tend to be for the short term. They pertain to the different job functions of the employees. As such, employees get employee performance goals that are unique to them. Employee performance goals are generally a small portion of the company’s overall goals. The targets should be specific, and the progress of the employees should be measurable. This will make the employee performance goals effective and motivate the employees to work harder to achieve them. Here, let’s know What are Employee Performance Goals?
Objectives Of Setting Employee Performance Goals:
There are several objectives of employee performance goals, and they are listed below.
- Having goals to work towards will make the employees motivated and interested in their job that might otherwise become monotonous.
- Breaking down the company’s goals into small pieces and delegating them to different employees will enable the company to achieve its overall goals faster.
- Employers can monitor their employees’ performance while they review their progress in achieving the goals. Employers can then guide the employees effectively and help them when they encounter any difficulties, which would increase the productivity of their work.
- Some employee performance goals help employees to improve their skills and gain new skills and knowledge. This will help them to grow professionally and achieve their personal career goals.
- The performance of employees in achieving their performance goals is a useful metric for employers when they are filling out employee evaluation forms accurately and fairly.
- If employees can achieve their performance goals well and even exceed them, it will create a good impression on their superiors and get the recognition which they otherwise would not receive. This can open promotions or new and better job opportunities for these employees.
- Employee performance goals continuously challenge employees to learn new strategies and knowledge, keeping them on their toes and forcing them to think critically. This increases the sense of achievement of employees and hence it increases their job satisfaction rate.
Steps To Set Employee Performance Goals
There are three key steps in setting effective employee performance goals and they are described in detail below.
Step 1: Understand the Company’s Overall Goals.
Ideally, employee performance goals are small parts of the company’s overall goals. As such, employers need to understand the company’s goals fully so that they can properly divide the goals into smaller portions for their employees to achieve.
Step 2: Obtain Input from Employees.
According to some surveys conducted, employees are more likely to achieve the goals assigned to them if they are personally invested in achieving them. As such, asking employees for their input while creating goals for them will let them have a say. This will encourage them to put in more effort to achieve their goals on time and in a satisfactory manner.
Furthermore, by discussing the goals with the employees, employers will get to know about the employees’ personal career goals. Hence, the employers can create goals for them which will also allow the employees to achieve their personal career goals at the same time. This will lead to a major boost in productivity as there is a personal gain for the employees in achieving the targets set for them.
Step 3: Utilize the SMART technique to set the performance goals.
The SMART technique for setting goals is as follows:
- S: Specific
The goals the employer sets must be clear so that employees would know exactly what to do to achieve the goals. For example, the goal ‘Improve Marketing of products’ is a vague goal. Whereas the goal ‘Create new campaigns for marketing of products ‘ is a specific goal as the employees know exactly what they need to do to achieve the target of improving marketing.
- M: Measurable
The employee performance goals should be quantifiable so that the progress of employees can be measured without any ambiguity. Ways to make a goal measurable is to add quantities such as numbers, time, efficiency rate to the goal. For instance, the goal ‘Increase Monthly Sales’ is not measurable. Whereas the goal ‘Increase Monthly Sales by 30%’ is measurable because there is a specific number of sales stipulated that the employees must make to achieve the goal.
- A: Attainable
If the goals set by the employer are impossible to achieve or are too hard to complete within the stipulated amount of time, then the employees would be demotivated and overworked. As a result, they might give up. As such, the employer must ensure that the performance goals are attainable and realistic so that the employees will remain optimistic and would continue to strive to achieve them.
- R: Relevant
All employee performance goals set by the employer must be relevant to the job scope of the employees and the company’s goals. The employer must not set performance goals that are beyond the capability and responsibility of the employees as this will cause them to lose interest in them and even give up.
- T: Timeframe
All employee performance goals must have a fixed time attached to them by which they must be completed to deem them as completed. This will create a sense of urgency and priority for the employees, and they would actively work on the goals instead of pushing them back to do other work which they feel is more important.
Ways for employers to help employees achieve their performance goals
There are several ways employers can assist their employees in successfully attaining the goals set for them. Some of these ways are explained below.
- Monitoring the progress of employees regularly.
Employers should check on the progress of the employees from time to time. This will encourage the employees to stay focused and complete their tasks on time. Additionally, employers will also have a chance to give useful advice if their employees are stuck, which will help them to overcome the hurdle and successfully achieve their goals.
- Recognizing efforts of hardworking employees.
Managers must recognize the efforts of employees who have completed their targets on time. This will motivate these employees to keep up their good work and to work harder on their next goals. On top of that, other employees will also start working harder on their goals because they know that if they work hard, they will be valued for it.
Additionally, if the company is doing well, then the company may also choose to give monetary rewards to the employees who have done well in achieving their goals. This will further incentivize the employees to stay focused on reaching their targets.
- Providing employees with adequate resources.
Employers need to provide their employees with sufficient resources so that they can efficiently achieve the performance targets set for them. A lack of resources or poor quality of resources may cause major hindrances in the progress of employees. As a result, some employees may become demotivated and may choose not to pursue those targets anymore.
- Creating a conducive and friendly workspace.
For employees to work at their maximum productivity level, they need a conducive and friendly environment. This is because a good and pleasant work environment will enable employees to think freely, discuss ideas with each other, and assist each other when they face difficulties, which would increase the output of the employees. A conducive workspace will also reduce conflicts between colleagues at work which allows new and good quality ideas to emerge and increases productivity.
- Making themselves more approachable.
If the managers are more approachable, employees will be able to communicate better with them. This will allow them to clarify any doubts they have regarding their work and to seek help when they encounter any difficulties. This will prevent the employees from feeling overworked and stressed. Furthermore, this will reduce hiccups and misunderstandings, which will allow the employees to achieve their target better and in a much shorter period.
- Compensate employees fairly.
If employees are paid adequately for their work and the intensity of work expected of them, then they are more willing to do a better job at it because they would feel that their efforts are worth it. If employees are underpaid, they will just put in the bare minimum effort into their work and would not bother trying to improve in their work, which would slow down the company’s growth.
Examples of Effective Employee Performance Goals for Growth of the Company
There are different types of performance goals for different types of jobs. Some examples of performance goals are explained below.
- The performance goal for employees working in Sales: ‘Plan and implement a campaign to double sales by the end of this quarter.’
This goal follows the SMART framework. The goal is specific because it mentions that a campaign must be planned and implemented. The goal is measurable because it states that the number of sales must be doubled. The goal is attainable because planning and implementing a sales campaign is within the capability of a sales representative. The goal is relevant to the employee’s job scope and the company’s goals as the goal is to increase sales. The goal has a fixed timeframe because it is stated that the goal must be achieved by the end of this quarter.
- A performance goal for website designers: ‘Improve the features of the company’s online learning platform for students to increase usability such that the number of student registrations on the platform increase by 20% by the end of this year.’
This goal follows the SMART framework. The goal is specific because it mentions that the features of the learning platform must be improved to increase usability. The goal is measurable because it states that the number of student registrations must be increased by 20%. The goal is attainable and realistic because improving the features of the online learning platform is within the capability of a website designer. The goal is relevant to the employee’s job scope and the company’s goals as the goal is to increase the number of student registrations. The goal has a fixed timeframe because it is stated that the goal must be achieved by the end of this year.
- A Performance goal for warehouse employees: ‘To improve the rate of packing materials by 5 units per shift within the next two months.’
This goal follows the SMART framework. The goal is specific because it mentions that the warehouse employees need to improve their rate of packing materials. The goal is measurable because it states that the rate of packing materials must increase by 5 units per shift. The goal is attainable and realistic because improving the rate of packing materials is within the capability of a warehouse worker and a similar improvement in the rate of packing materials must have been achieved in that past in that company for the employer to set this goal. The goal is relevant to the employee’s job scope and the company’s goals as the goal is to increase the rate of packing materials. The goal has a fixed timeframe because it is stated that the goal must be achieved within the next two months.
- A Performance goal for customer service representatives: ‘To improve communication skills such that the customer call satisfaction rate increases by 10% by the next employee performance evaluation.’
This goal follows the SMART framework. The goal is specific because it mentions that the customer service representatives must have communication skills such that the customer call satisfaction rate increases. The goal is measurable because it states that the customer call satisfaction rate must be increased by 10%. The goal is attainable and realistic because improving communication skills to increase customer satisfaction rate is within the capability of a customer service representative. The goal is relevant to the employee’s job scope and the company’s goals as the goal is to increase the customer satisfaction rate, which would boost the company’s revenue. The goal has a fixed timeframe because it is stated that the goal must be achieved by the next employee performance evaluation.
Examples of Effective Employee Performance Goals for Professional Development of Employees
- A Performance goal for employees aspiring for a promotion to a leadership job position: ‘Complete two leadership training by the end of this month.’
This goal follows the SMART framework. The goal is specific because it mentions that the employee must complete leadership training. The goal is measurable because it states that 2 pieces of training must be completed, and the employer can easily check on the progress of the employee in the training. The goal is attainable because completing leadership training is within the capability of the employee. The goal is relevant to the employee’s aspirations of being promoted to a leadership position. The goal has a fixed timeframe because it is stated that the goal must be achieved by the end of this month.
- A Performance goal for employees aspiring to transfer from a technical role to a marketing job position: ‘Job shadow an employee in the marketing department for 1 month and pass an interview for a marketing position at the end of it.’
This goal follows the SMART framework. The goal is specific because it mentions that the employee must job shadow an employee in the marketing department. The goal is measurable because it states that the employee must pass the interview for the marketing job position at the end of the job shadowing, so the employer can measure how much the employee has learned about marketing during the job shadowing. The goal is attainable because job shadowing another employee is within the capability of the employee. The goal is relevant to the employee’s aspirations of transferring to a marketing job position. The goal has a fixed timeframe because it is stated that the goal must be achieved in one month.
- A Performance goal for employees aspiring to become more vocal at work: ‘To give three presentations on the behalf of the team during meetings with the manager in one month.’
This goal follows the SMART framework. The goal is specific because it mentions that the employee must give presentations on behalf of the team during meetings with the manager. The goal is measurable because it states that the employee must give three presentations. Furthermore, the manager can assess the quality of the employee’s presentations during the meetings. The goal is attainable giving presentations on the behalf of the team is within the capability of the employee. The goal is relevant to the employee’s aspirations of becoming more vocal at work. The goal has a fixed timeframe because it is stated that the goal must be achieved in one month.
Difference between employee performance goals and development goals
Employee performance goals are targets set for employees to achieve taking into consideration the company’s overall goals and the job scope and responsibilities of the employees. These goals may sometimes help the employees to achieve their personal career goals as well. However, this is not the case for all employee performance goals. Employee performance goals may be chosen solely by the employers, without consulting the employees about their thoughts.
Whereas development goals are goals that are specifically set to help employees to achieve their career ambitions. Such goals focus on enhancing the learning of employees by providing them with the opportunities and resources to improve their existing skills and knowledge and gain new information. Development goals need not contribute towards a particular goal of the company. On top of that, in the crafting of development goals, employees are asked to give their inputs as these goals are meant to facilitate their personal growth.
Conclusion
In a nutshell, employee performance goals are important to give direction to employees and motivate them to work harder. Furthermore, the cumulation of employee performance goals completed will ultimately help the company to achieve its overall goals. On top of that, employee performance goals aid in the professional development of employees and help them to achieve their personal career goals at the same time. As such, it is important for employers to create effective employee performance goals and for employees to try to achieve them to the best of their capabilities.
Frequently Asked Questions
- Who creates employee performance goals in the company?
The people in charge of creating employee performance goals vary in different companies based on the organizational structure of the company and the industry they are in. Usually, the superiors such as managers or supervisors, and the staff from human resources draft the employee performance goals. Many companies believe in asking for the input of the employees in the process of creating employee performance goals.
- Should I assign individual performance goals for myself?
Yes, you should assign individual performance goals for yourself to help you achieve your career goals, especially if the targets assigned to you by your superiors are not in line with your career goals.
