Goal setting for employees | Step-by-step guide

If you've ever tried to implement a goal-setting framework at work and watched it fizzle out after a few months, you're not alone. Balanced scorecards, S.M.A.R.T. goals, OKRs, there's no shortage of strategies out there, but if setting goals was as easy as picking a framework, why do so many organizations still struggle to make them stick?

You can know everything about the framework of creating the goals, but you need to also be sure how to work on the approach. Goals that actually drive performance aren't just checkboxes on a quarterly plan, they need to feel meaningful, align with real business challenges, and be structured in a way that employees actually want to engage with.

So, where do you start? Here's how to lay the groundwork for a performance-driven goal-setting process:

Step 1: Treat career growth like a GPS, not a map

Most goal-setting processes focus on where employees should go, rather than where they want to go, and that's a problem, because if an employee doesn't see personal value in the goals set for them, they're far less likely to engage.

Instead of dictating goals, start with a career GPS approach and help employees map out where they want to go in their careers and align their goals with business objectives. This method not only drives motivation but also ensures that development plans feel genuine rather than forced.

Step 2: Reverse engineer goals from business challenges

Typical goal-setting starts with a vision: “Where do we want to be in five years?” But what if you flipped that thinking? Instead of only planning for success, identify the challenges that could hold your company back.

What obstacles could keep you from hitting revenue targets? What inefficiencies could slow down operations? By identifying these roadblocks first, you can reverse engineer your goals to directly address the problems standing in your way.

Step 3: Focus on behavior, not just outcomes

Many leaders set goals based on desired end results, higher sales, better retention, increased efficiency, but these are outcomes, not actions.

To make goals effective, focus on the key behaviors that drive success. If productivity is the goal, then nurturing accountability, improving engagement, and streamlining workflows should be part of the process. If collaboration is the objective, then encouraging open communication and psychological safety within teams needs to come first.

So, what's next? These are just the first three steps! To get the full breakdown, including how to balance stretch goals and recovery goals, plus the best way to track progress, check out our complete step-by-step guide here: https://powertofly.com/up/goal-setting-for-employees

Ready to build a goal-setting framework that actually works? PowerToFly has the insights and tools to help you create high-performing, engaged teams. Let’s make 2025 the year of goals that stick!