Effective target setting: 10 tips for managers

Target setting is an important stage in the performance review cycle, and crucial for the success of both individual employees and the organization as a whole. Target setting takes place at the beginning of an employee’s evaluation period, and the target setting meeting provides a unique opportunity to discuss goals for the upcoming months, align expectations, and chart a clear course for the future. The following 10 tips will help managers prepare and conduct effective target setting meetings.

1. Be well prepared

   Good preparation is half the battle. Review the employee’s performance and development so far, and think about specific examples and data you can discuss during the meeting. Last year’s performance review results and prior agreements regarding the employee’s training and education can be valuable input in this respect.

2. Set clear targets

   The beginning of an employee’s evaluation period is the perfect time to set clear, measurable, and achievable targets. These targets should align with both the employee’s ambitions and the company’s and department’s objectives. Define and document the targets in the company’s performance review system.

3. Listen actively

   Active listening goes beyond just hearing what is being said; it involves truly understanding what is being communicated and showing empathy. By listening actively, you foster trust and promote an open and honest dialogue.

4. Provide support and resources

   Employees need to feel supported in achieving their targets. Discuss what tools, training, or other support they will need to be successful.

5. Be flexible

   Be open to the ideas and feedback of the employee. A flexible attitude demonstrates that you value the employee’s input and are willing to adjust plans as needed.

6. Monitor progress

   Target setting is just the beginning. It is extremely important to follow up with the employee regarding their targets. So schedule regular brief check-ins to discuss progress and ensure that targets and expectations are still on track to be met.

7. Provide constructive feedback

   Give feedback that is both informative and motivating. Focus on what is going well and what the employee can improve, and always do so from a positive and constructive perspective.

8. Develop an employee action plan

   Effective target setting provides the basis for a well-defined employee action plan setting out steps the employee will take to achieve their targets for the evaluation period concerned.

9. Document agreements

   Ensure that everything discussed and agreed upon is well documented. This prevents misunderstandings in the future and serves as a reference point. It is particularly important to document the action plan and concrete agreements in the company’s performance review system. This helps the employee maintain focus and significantly increases the likelihood that the employee’s targets will be met.

10. Always end on a positive note

    End the employee meeting on a positive note. Emphasize your confidence in the employee and in their ability to meet the targets.

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