Definition
Goal setting is the process of agreeing clear objectives that an employee, team or organisation will work towards over a set period, and how progress will be measured. In performance management it links each person's work to business priorities and gives a fair basis for review.
Why goal setting matters
Goals tell people what good looks like before the work starts, not after. The best known research here is goal-setting theory, developed by psychologists Edwin Locke and Gary Latham, which found that specific, challenging goals generally lead to better performance than a vague instruction to do your best, provided people accept the goal, have the ability to reach it and get feedback along the way.
For managers, written goals also make reviews fairer. When the target was agreed in advance, the conversation at review time is about evidence rather than impressions.
To hear how candidates set and pursue goals before you hire them, ask about it in a one-way video interview, where AI transcribes and ranks every answer.
The goal setting process
Start with organisational priorities for the period, then translate them into team goals, then into individual goals. Draft individual goals together with the employee rather than handing them down, because ownership affects commitment. Write each goal so that someone else could judge whether it was met, using a format such as SMART.
Agree how progress will be tracked and when you will check in. Monthly or quarterly check-ins let you adjust goals when circumstances change, instead of discovering at year end that a goal stopped making sense in March.
Types of goals and frameworks
Performance goals describe results, such as a sales target or a shorter support response time. Development goals describe growth, such as learning a new skill or leading a project for the first time. A balanced plan usually has both.
SMART goals are the most common format for individual objectives. OKRs (objectives and key results) pair an ambitious qualitative objective with a few measurable results and are often used for team and company goals. The two can sit side by side.
Goal setting for new hires
For someone new, set a small number of goals for the first 30, 60 and 90 days, mixing learning goals, such as understanding the product and meeting key colleagues, with one or two early deliverables. It gives the new starter clear direction and gives the manager an early, fair check on whether the hire is working out.
Goal setting mistakes to avoid
Setting too many goals spreads attention thin. Setting goals the employee cannot influence, such as the company share price, damages motivation. Measuring only what is easy to count can push people towards the wrong behaviour. And goals that are set in January and not mentioned again until December do little more than complete a form.
Be careful, too, about tying every goal to pay. When bonuses depend entirely on hitting targets, people may negotiate lower targets and avoid ambitious ones. Keep some goals developmental, and judge them on progress and learning as well as the final number.
Frequently asked questions
Goal setting is deciding in advance what you or your team will achieve, by when, and how you will know it has been achieved. In the workplace it is the first stage of performance management, where manager and employee agree a small number of clear, measurable objectives for the coming period.
Focus on what goals do for them: they make expectations clear, show how their work connects to the wider business, and make reviews fair because success is agreed upfront. Keep the message short, share one concrete example of a well-written goal, and invite each person to draft their own.
Goal setting is the overall process of choosing, agreeing and tracking objectives. SMART is one framework for writing those objectives well, checking that each is Specific, Measurable, Achievable, Relevant and Time-bound. You can use SMART within goal setting, alongside other formats such as OKRs.
Related terms
Part of the springhire HR glossary.
