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Friday, May 21, 2010

Goal Setting Strategies to Engage Employees

In my post from earlier this week, Employee Engagement Lessons from the Dog Park, we discussed the importance of clarifying roles and responsibilities. This is critical for new hires in addition to current employees. As a result of the recession, many organizations have restructured, employees have taken on new assignments, and it is vital they have a solid understanding of their new roles.

Goal setting is very important for organizations in these times of change. It needs to be a joint effort between managers and employees. They need to collaborate on developing goals and establish a clear understanding of the expected results. Some companies are using the balanced scorecard concept to measure the firm’s performance in respect to financial, operational, customer relations and training and development results. The balanced scorecard serves as a link between the firm’s overall goals and departmental or unit goals. It is intended to function as a working document that can be used daily to monitor the unit’s progress compared to the firm’s overall goals and strategy.

Goals serve as a roadmap in times of change
Goal setting affects employee engagement in several ways. Employees are being pulled in a number of different directions; especially during times of change like we are encountering currently. Goals serve as a roadmap for employee thinking patterns and behaviors. In addition, goal setting has a motivation element which spurs employees to put forth the effort and energy needed to reach challenging goals. Employees strive for a sense of accomplishment and goal setting can foster increased job satisfaction, if the goals are set correctly. Goal setting can also help employees develop perseverance and persistence over time as they overcome roadblocks to achieving the goals.

Goals should be challenging
When setting goals for your employees, there are several factors to keep in mind. First, goals should be challenging, but attainable. Over time, this will foster a high commitment level among your employees. Some organizations will establish both target and stretch level goals to further motivate employees and drive performance. It is important that the manager supports the employee and helps them visualize how to achieve the stretch goal. If the stretch goal is set too high and perceived as unattainable, it can actually serve to de-motivate employees. Second, when the manager involves the employee in setting goals, it is important that the employee develops goals that are higher than their current level of performance. Otherwise, performance will be stagnant, rather than increasing. Third, employees need to see directly how their goals tie into the overall firm’s mission, vision, objectives and goals. From a motivational standpoint, they need to believe their efforts are in line with the firm’s vision.

Goals should be clear
Employees want clear and specific, action-oriented goals. Research studies show that workers achieve higher performance when their goals are clear and specific. Goals should be defined in terms of the employee’s job roles and responsibilities. It is important that the employee has control over the tasks required to complete the goal. In addition, the manager and employee need to discuss resources needed to achieve the goal. The manager needs to ensure that sufficient resources are available so the employee can achieve their goals.  Otherwise, goals will not be perceived as legitimate.

Reflections for your business
Here are some ideas to consider:

- Do you have goals for all your employees?
- How frequently are goals reviewed and revised in your firm?
- Are your goals clear, specific and measureable?
- Do you have a rewards and recognition system in place that is tied into goal setting?

When looking for methods to engage employees, pull out your Goal Setting tool from your toolbox. It is a powerful strategy for unleashing your employees’ passions, strengths and talents to propel your business forward.

Chrissann Ruehle is Co-Founder of Black Lab Ventures, LLC. A human resources management consulting business, Black Lab Ventures focuses on on-boarding, training & development, performance management, and health & wellness initiatives. Our signature service, called Culture Branding, is a form of employer branding designed to help companies attract top talent and retain employees they already have. For small businesses, we offer our HR Start-Up Kits – a simple and affordable method to achieve an HR presence. We also offer full service packages for mid and large-sized companies, and function as a complement to their HR departments so they can focus on their core business.
 For more information, please visit our website at http://www.blacklabventures.com/ or feel free to call us at 513-443-2365.

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