How Can Setting Employee Goals Help Your Organization?

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When we think of employee goals, we think of how much guidance and direction they offer to employees. But rarely do we think of how setting goals for employees can impact an organization. In fact, we sometimes forget that goal-setting even benefits organizations in the grand scheme of things.

To understand this, we must first understand goal-setting in a nutshell. When we want to complete a major task, we give ourselves smaller goals which when attained, help us complete the major task.

In the same way, an organization has major objectives and goals that should be fulfilled in order to ensure the organization’s success. So, setting employee goals is just a way to distribute the objectives among the employees in such a way that their individual goals are aligned with the organizational objectives and goals.

There are a number of benefits to setting employee goals in an organization. Here is a look at four of them.

[This article deals with the benefits of goal-setting. But if you want to take a look a process of goal-setting itself and how to set good, smart goals, this article on setting constructive and effective goals should help.]

1. Better Understanding Of What Needs To Be Done

Clarity is vital to an organization’s success. Goals provide everyone with clarity, right from the employee, to the manager and all the way up to the CEO. Setting well-thought out employee goals gives employees a clear understanding of what needs to be done. When employees are able to successfully complete their goals, managers gain an understanding of the employee’s strengths and weaknesses and then can set new goals which employ those strengths and weaknesses.

2. Effective Usage Of Time And Resources

Setting concise goals can help employees prioritize tasks and resources. For example, you can have 1000 employees. But if each of these employees is working towards a general goal, but without any rhyme or reason to their process, a lot of time and effort is being wasted. On the other, imagine if you have just 100 employees. However, these 100 employees all have precise goals that tell them what exactly they need to achieve.

Therefore, these 100 employees have a good idea of what they need to prioritize and what they don’t. An organization’s success does not lie in its number of employees ( though those numbers certainly help). It’s all boils down to how employees in an organization utilize the resources that are available to them. And goals help with that.

3. Scope For Creativity

When you have a clear goal in front of you, with enough resources and time, there is more scope for creativity and freedom of thought. In order to meet goals ( because who does not love checking ‘complete’ against a goal) employees will get creative. They will explore new paths, they will explore new methods and processes. Creativity does not only benefit employees. In the long run, it benefits the organization too. After all, nobody wants to be stuck in a rut, doing things the way they were done twenty years, and in the process harming the organization. Creativity spur growth.

4. T Is For Teamwork!

The easiest way to get a bunch of people together is to give them a common goal. Goals foster team spirit and motivate employees like no other. In order for organizations to succeed, there needs to be a united bunch of employees behind them, determined to help the organization succeed. The satisfaction of being a part of something larger, not only makes employees feel involved, but it also engenders loyalty towards the organization, because, employees are now personally invested.


Engagedly’s Goal module allows you to create goals easily, without any fuss and allows you to check-in and review them regularly as well. To see how our Goals module can help you, request a demo today!

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