Importance of Goal Setting for Employees

by Srikant Chellappa Jun 27,2023

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Have you ever wondered why your projects are always behind schedule or why your employees are losing interest in their work? A simple answer to this might be that employees at your workplace don’t have clear goals to direct them. Many organizations fail to understand the importance of goal setting, and as a result, they fail miserably.

Why Goal Setting is Important

Goal setting provides a sense of direction and focus, which helps in altering the behaviors and attitudes required to accomplish the objectives. It gives you momentum and a thrust that pushes you in the direction of self-mastery to improve every day and be resilient in challenging times.

Goal Setting benefits not only the employee but the organization as a whole. Considering the importance of goal setting, a good amount of time should be devoted to it. In this article, we will discuss why goal setting is important for your employees.

Motivates Employees

Goal setting keeps employees motivated by fostering a culture of accountability and progress tracking. It enables employees to stay focused and aligned with the company’s strategic objectives, resulting in improved overall organizational performance.

Goal setting serves as a powerful tool to not only communicate expectations but also to illustrate the broader impact of your team’s efforts. This fosters higher engagement, motivation, and productivity, ultimately fueling significant company growth.

Also Read: Chasing Goals When Motivation Is Low

Prioritizing Work

Having a clear goal in mind helps in focusing on priorities. Once the goals are decided, they can be taken up for completion in order of their priorities. This allows tasks to be completed on time and in a logical order. Ability to prioritize goals shows an employee’s ability to plan and focus ahead. This makes them better prepared and clear on what work needs to be completed and by when.

OKR goal setting softwareDecision Making

Goals help in enhancing the decision-making skills of the employee. They serve as a guide in the decision-making process. Before taking any decision, an employee will evaluate it against the goal that they are trying to achieve. Every decision is taken based on the outcome of the decision. Similarly, this applies at an organizational level, where every decision is taken thinking about how it will affect the business. Goals are useful for employees when they come across challenging projects as that helps in making wise decisions. 

Also Read: 3 Factors To Remember When Setting Employee Goals


When individual goals are linked to organizational goals, it promotes teamwork. The leaders and managers must let every employee know how their goal is linked to the organization’s goal. The employee will understand the importance of teamwork once they know how they fit in the overall organizational goal and how their goal is linked to their peers.

Measure Success

When goal setting is done correctly, it will help in measuring employee and organization success. The ‘SMART’ way could be used to set a goal so that they can be measured quantitatively as well as qualitatively. The SMART method stands for specific, measurable, achievable, relevant, and time-bound. For employees, a successful goal should be a specific one for which progress can be measured and achievable on time. Measurable goals will help everyone evaluate the results and help them know what was effective.

Also Read: How To Use Smart Goals For Employee Engagement?

Guides Employees

Goals setting guides employees in moving forward in the organization. It acts as a roadmap for the employee towards achieving what they want. For example, if an employee wants to become a CEO someday, writing down that goal with details on what steps they will take to achieve it, can help them with the goal. Properly thought and stated goals will not only guide the employee continuously but will help in improving the skills and capabilities of the employees.

Time Management

If you want to improve how you manage time – stop doing what doesn’t need to be done! -Peter Drucker.

Time is one of the most important resources for every business. Having a clear goal in place will help employees to manage their time effectively. Goals help in prioritizing work and prevent employees from working on irrelevant things and getting distracted.

For example: When you have a deadline for a web application project, setting specific goals for each module of the project will help you finish the project on time and eliminate distractions.

Also Read: Engagedly For Managing Your Remote Team: Goal Setting And OKRS

Thus it can be rightly said that goal setting at any organization makeup for a focused and driven workforce. Employees are more involved and engaged with the work they do, which leads to better productivity for the employee and ultimately for the organization.

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Frequently Asked Questions

Q1. What is the importance of goal setting in an organization?

Goals are important because they provide clarity, motivation, measurement, accountability, and a sense of achievement.  They provide a clear roadmap for where one wants to go and what one wants to achieve.

By setting specific goals, individuals and teams can stay focused and motivated on what matters most, allowing them to work towards their desired outcomes with a sense of purpose and direction

Q2. How can goals improve workplace productivity?

Ans. By setting clear goals and objectives, individuals and teams can prioritize their work, reduce distractions, and stay focused on what matters most. This can lead to increased productivity and efficiency in the workplace.

Q3. How can managers help employees set and achieve goals?

Ans. Managers can help employees set and achieve goals by providing clear expectations, regular feedback, and opportunities for growth and development. They can also offer support and guidance to help employees overcome obstacles and achieve their desired outcomes.

Q4. How can individuals and teams stay motivated when working towards goals?

Staying motivated requires a sense of purpose and a clear understanding of how achieving goals will contribute to overall success. Regular feedback and recognition can also be highly motivating, as can a supportive and collaborative work environment.

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Srikant Chellappa
President/CEO and Co-Founder of Engagedly

Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2023.

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