Every company has certain expectations from its employees. Certain indicators are used to evaluate employee performances. Employees must meet the performance goals set by the company to maximize their true potential. Even when you are working for yourself, performance goals help you to set work targets and the execution time and process. In order to boost your productivity, you need to better understand the meaning and importance of performance goals.
What Are Performance Goals?
Performance goals are short-term targets that employees are expected to meet. Defining goals helps employees understand what kind of work is expected from them or their positions. It also helps employers to evaluate and guide employees in the right way. Tracking employee performances also help in deciding pay raises, promotions, dismissals, etc. Performance goals sometimes use incentives to boost employee productivity.
Performance goals are usually set by the employer, manager, supervisor, or HR department on the basis of company objectives and performance standards. The goals are often set after considering the consent and the position/job role of the employees to keep them encouraged and motivated.
Setting Performance Goals for Enhanced Productivity
Below mentioned are certain aspects that the managers must keep in order to set realistic performance goals:
- Company Objectives - Performance goals that are set keeping in mind the company’s objectives, maximize productivity. Employees can contribute toward the success of their company only when they are fully aware of the company’s objectives and strategies.
- Employee Participation - In order to achieve success, allow the employees to put forward ideas and recommendations for their own goals. It works better for employers when they work to achieve goals set by them instead of the ones imposed on them by the company.
- SMART Method - The SMART method makes sure that the performance goals are specific, measurable, achievable, relevant, and time-bound.
- Regular Updation - The performance of the employees must be reviewed regularly. Employees must be motivated and rewarded periodically for achieving the goals.
Performance Goals Examples
Below mentioned are the top 10 performance goals examples:
Reducing the number of resources used for producing an output.
Minimize plastic usage by 27% by introducing a range of small-sized bags for small orders.
Increasing the amount of work produced in a given time frame (an hour, week, month, or year)
Manufacture at least 30 paper bags per hour.
Increasing the amount of money received in exchange for goods and/or services
Use marketing campaigns to increase the sales of the new trendy dyed t-shirt collection.
Reducing the overhead or unit cost
Secure deals with long-term suppliers to reduce the unit cost of our cream cakes.
5. Customer Satisfaction
Enhancing customer experience after interaction, purchase, or return of any product and/or service.
Address and fix all customer complaints to increase customer satisfaction by 49%
Enhancing the productivity, efficiency, quality, and standard of the production process.
Incorporate different marketing strategies to improve the sales and gross margins by 15% and 9%, respectively.
7. Business Capabilities
Enhancing the potentiality of the business in such a way that they serve as the company’s strengths.
Manufacture our own dyes to improve the quality, reduce the cost of our dyed t-shirt range.
Ensuring non-violation of laws, regulations, and standards. Setting internal standards helps in this process.
Incorporate more safety tests to ensure the highest safety score for our new baby lotion range
Improving the rate at which the brand/company is seen by the audience via different marketing channels.
Design PR campaigns to generate 10,000 impressions in a duration of one month.
Filling roles, enhancing performances of the newly hired, and reducing recruiting costs.
Enhance the recruiting cycle to recruit 20 new employees for the vacant roles and evaluate the performances of the newly hired employees for better average performance ratings.
Importance 0f Setting Performance Goals
Setting performance goals helps both the employee and the organization as a whole. Listed below are the reasons why setting performance goals is considered important:
1. Motivates the Employees
Without properly set performance goals, employees often find work confusing and demotivating. This negatively affects productivity. Achieving the performance goals gives a sense of confidence and job satisfaction to the employees.
2. Prioritizes Work
Once the goals are set, the employees have to prioritize work in order to achieve the goals. Predefined performance goals enhance the focus and preparedness of the employees.
3. Enhances The Decision-Making Process
Performance goals enable employees to make the right decisions by considering the goals as a guide.
4. Promotes Teamwork
Setting performance goals bridges the gap between individual goals/interests and company goals. It also makes the employees understand their value in the company’s success.
5. Measures Success
Defining performance goals help in measuring the success of both the employees and the company. The SMART method allows both quantitative and qualitative measuring of success.
6. Guides Employees
Performance goals provide a roadmap for the employees to move forward in the company. The absence of goals can confuse and demotivate employees. Goals allow employees to achieve success by constantly testing and developing their capabilities.
7. Manages Time
Performance goals provide the employees with a deadline to finish their assigned duties. This makes the employees prioritize work and achieve their goals within a given time period.
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