For a workplace goal to be motivating, it

December 27, 2017Nobody likes annual performance reviews. Even high performing employees can be demoralized by rigid or arbitrary goals. But what if you could find a way to flip it – turning the annual performance review process into a positive moment where employees feel empowered to learn and grow?

While goals have long been used as a quantitative measure for employee performance, many organizations find that the goal-setting process takes a huge amount of time and is, frankly, not very effective. However, when done correctly, goal-setting can help improve employee engagement in a way which elevates performance and benefits organizations overall, according to recent McKinsey research.

Setting goals can be as challenging as meeting them. Here are three things to keep in mind when establishing effective employee goals:

1. Involve employees from start-to-finish

   The purpose of goals is to help employees improve – naturally, it makes sense to include them in the entire process. Securing employee buy-in allows you to help develop their short- and long-term goals, and increases the likelihood that they will be achieved. Managers should jointly develop goals that are SMART (specific, measurable, actionable, results oriented and time bound). Doing so inspires commitment and allows individuals a sense of ownership in achieving their goals. Encouraging employees to set stretch goals also helps push performance and serves as a motivator for ongoing development.

2. Link individual goals to business objectives

   Of companies who have effective performance management systems, 91% say that employees' goals are linked to business priorities. The explanation is simple: employees will be more effective if they can see how their individual goals fit into the big picture. In recent years, there has been an uptick in the number of companies linking organizational business goals to functional business objectives, and converting those into team-performance goals. This encourages accountability and better performance as individuals grasp the direct impact of their performance.

3. Adapt goals in real-time

   Goals should never be seen as stagnant, but dynamic and evolving. One common mistake is setting goals at the beginning of the year and forgetting about them until review season. As realities fluctuate throughout the year, failing to revisit goals can be demotivating. That’s not to say goals should become moving targets, but rather that they should be adapted as the environment changes. At one multinational company McKinsey works with, for example, targets are updated if the assumptions used to set them change unexpectedly. This has helped establish a performance-management system that helps motivate performance.

Goals don’t have to be the bane of your employees’ existence. When done properly, setting goals can improve commitment materially and help clarify an employee’s role – the single biggest driver of organizational health.

How to improve employee motivation in the workplace: 10 tips

The first step to improving employee happiness is making sure your workforce is motivated. These are the top 10 things you can do to help your employees stay engaged at work.

1. Lead with vision

Everyone wants to know that their efforts are driving towards something. What’s the next step? What does success look like for the company? A destination helps to motivate the journey, so make sure the vision for the company is clear.

2. Make sure everyone understands the ‘why’

Your employees will know what needs to be done, but you need to explain further; you need to communicate the ‘why’ of each task. The why is the company’s overall mission. If everyone knows how their individual actions can personally add to the overall goal of the company, it brings much-needed intrinsic motivation to even the most simple task.

3. Set frequent clear targets

You obviously have big targets that you want to hit as a company, but smaller goals are the key to motivation. All goals should add to the overall target, but breaking this into more attainable chunks feels less overwhelming. If employees are frequently hitting targets, the feeling of satisfaction grows and will act as a great motivator to continue on to the next set of goals.

4. Recognise and reward great work

Employees need to know that their managers appreciate their hard work. Giving well-deserved recognition not only increases self-esteem but also enthusiasm and team morale.

A recognition platform is an effective tool to celebrate star performers who embody your company values. It's important to support employees all year round with team-building exercises, wellbeing schemes, secondment opportunities and EAP programs. However, for more special occasions, such as a 10-year work anniversary or employee of the month, we recommend going a step further and rewarding your teams.

The reward doesn't necessarily have to be monetary, it could be a gesture, such as giving them a day off. Rewards are particularly good promoters of motivation and job satisfaction. So if you want to encourage your employees to go the extra mile, make their effort worth it with a gift or thoughtful act.

5. Give your team autonomy

Time is precious. So when we don’t feel in control of our time and energy, motivation levels can really drop. Allowing for some elements of freedom in the workplace, whether that’s flexible working hours or unlimited time off, demonstrates trust from leaders to employees. This adds motivation, as the satisfaction of a job well done comes with the feeling that they were in control and did it on their terms.

6. Create a welcoming workplace environment

No one wants to sit in a gloomy office and desperately wait for home time every day. If workplaces create a friendly culture, with areas for rest and play, employees will look forward to coming into work. The saying ‘work hard, play hard’ is important here. As motivation and mood go hand in hand, a poor mood can affect the ability to concentrate and will lower the feeling of energy in the workplace.

7. Offer impressive benefits

Make everyone feel that they are working in the best place they can be. Offering employee benefits and perks, such as the wide range available through our perks platform, and fringe benefits that aim to make your people's lives better both in and outside of work, helps to boost the mood and sense of loyalty to the company. Make sure your benefits suit your employees' unique needs; for instance, if they live in London, they may require a London weighted allowance.

8. Encourage teamwork

Collaboration between teams in the company allows ideas to be developed further. Working with those with different skill sets will, in turn, create more innovative results. In teams, there’s power in numbers and anyone experiencing a lack of motivation should be boosted by those around them.

9. Create a career path

No one wants to be static for long. We all want to know that we are going somewhere and focus on that next step. Ask employees what they want from their career, and lay out what they need to do to get there. Have growth conversations with team members to design a career path; this will help to create the drive to reach the next stage and feel that they have a long and productive journey ahead within the company.

10. Support staff motivation by supporting employee wellbeing

When organisations are implementing motivation strategies or employee incentive schemes, they often overlook wellbeing.

There's no dispute that using rewards as an incentive is a great motivator. However, if an employee is feeling tired or overwhelmed they won't produce their best work – no matter how hard they try.

Taking a well-rounded approach to wellbeing, so addressing your teams' mental, emotional, and physical health is a great way of keeping them healthy, happy, and at the top of their game.

Read next: 19 effective employee engagement ideas

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