How to Set Realistic Goals for Your Employees

In most industries, managers set aside regular time to determine performance goals for employees. It’s an important component of business success because setting goals fosters meaningful change and growth, both for your employees and your company. A 2024 McKinsey survey found that 72 percent of employees cited goal setting as a strong motivator for performance. 

But coming up with development goals for employees can be challenging, and sometimes it’s helpful to think through them systematically. Emphasizing the links between the priorities of your business and the goals of the employees and setting up regular check-ins can be an important part of keeping both employees and managers accountable throughout the year.

Helping employees take ownership of their goals helps the business flourish. Here are some best practices for goal setting with employees. And to make sure your business is protected from the unexpected, speak to a Farm Bureau agent.

Step 1: See the Big Picture

It can be tempting to start listing off projects that an individual employee needs to accomplish. But before delving into what each person should focus on, it’s essential for both you and them to understand the larger organizational goals. Communicating company goals to your employees is a starting point for setting measurable, attainable employee performance goals that also align with what your business is aiming to do.

When employees see how their roles contribute to the goals of the workplace, they often feel more motivated to contribute to the shared objectives, taking greater accountability for their actions and deeper satisfaction in the company’s overall success. So you may want to spend some time reminding the whole company of your vision, mission and values before you drill down to individuals.

Step 2: Be SMART

Setting goals for employees that arm them for success starts with making your goals SMART. What are SMART goals? The acronym stands for Specific, Measurable, Achievable, Relevant and Timely — five elements of goals that help increase performance and motivation.

• Specific: The goal should be as detailed as possible. If an employee says, “I want to do better,” come up with ideas that will lead to this result but are more concrete and tactical in action.
• Measurable: The goal should have clear criteria that indicate progress. You and the employee should be able to quantify their improvement and know when change happens.
• Achievable: The goal should challenge the employee but remain within realistic parameters. Have a candid conversation with your employee to uncover possible obstacles to attaining the goal and the strategies to take to overcome those obstacles.
• Relevant: The goal should make sense for the employee and the company, yielding benefits for both.
• Timely: The goal should have agreed-upon deadlines or target dates for completion.

A SMART goal is clear and trackable, a stretch but not impossible, and aligned with the company’s goals. What are some SMART goals examples for employees? You might make a goal to increase customer service response time by a specific number of minutes by the end of Q2 or earn a particular certification to prepare for a management role within the next six months. The specificity, measurability, achievability, relevance and timeliness make the goal SMART.

Step 3: Discover Motivations

What gets your employees excited to work toward their goals? Find out! Ask employees where they want to be in the coming year and beyond. Some may be looking for more earning power; others may want to learn a new skill or master a software program.

Once you know what your employee strives for, you can help chart a strategic course. Have frank discussions about what will help your employee achieve their goals and expectations, and stay committed to offering support and detailed feedback.

Step 4: Invite Suggestions

Give your employees the freedom to develop their own performance goals. If you ask employees to identify objectives specific to their job that also hold personal value to them, you might be surprised by the valuable employee goal-setting ideas they come up with.

For example, an employee might develop goals related to productivity, such as finishing administrative tasks quicker in order to use the extra time for bigger-picture projects. Use this insight to help employees set goals that matter to them. Steer them toward SMART goals that dovetail with their own ambitions and support the growth of the company.

Step 5: Be Reasonable

Don’t set — or allow your employees to set — goals they can’t hit. If an objective is beyond your employee’s skillset or simply too ambitious, nix or adjust it. Tough-to-reach goals aren’t bad, but those that are too high can burn out your employees or make them feel defeated. Use an employee’s past performance to gauge appropriate goals.

At the same time, goals shouldn’t be too easy to accomplish. Setting an appropriate objective at work will give your employees a challenge that leaves them feeling fulfilled.

Step 6: Stay Consistent

Employee goals should be relatively consistent for individuals with the same or similar positions in the company. While expectations can scale up or down based on experience, comparing the performance of two employees in very different ways could lead to resentment, unhealthy competition and hurt feelings.

Step 7: Inspire Engagement

When you set goals for your employees, it’s important to establish regular touch bases to follow-up. Don’t fall into the cycle of setting goals with your employees at the start of the year and then revisiting them for the first time in December. Schedule monthly or quarterly check-ins during which an employee can ask questions as they arise and you can offer guidance or mentorship in a timely manner. This gives you the opportunity to step in and assist when necessary, while also making the employee feel supported.

Step 8: Think Long-Term

Tie your employees’ goals to their long-term career development. If they hope to rise to a managerial role, add an educational goal that would better prepare them for taking on new responsibility. Meaningful goals and a solid goal-setting process will help your employees look to the future and develop ways to get there. And to the degree the company is able, find ways to support them in those goals, which might include providing time or resources to make them possible.

Step 9: Reward Achievements

Celebrate when your employees meet or exceed their goals! Consider a reward or public acknowledgement (being mindful of their comfort level). Without acknowledgment, your employees may end up feeling like their success isn’t important to the larger efforts of the team and the goals of the workplace. Not only does rewarding your employees show that you value hard work, it also does double duty by motivating other employees to commit to their own goals.

What Are Your Business Goals?

If you would like to be sure you have the right business coverage so you can focus on the big picture and move your company forward, reach out to Farm Bureau.