6 Ways To Align Company Goals and Employee Performance Goals

July 18th, 2024 – Tori Rochlen

Are your employees genuinely aligned with your company’s goals or unknowingly pulling in different directions? When you connect employee performance goals to your organization’s strategic vision, you help bolster engagement and overall performance.

Visibility into company goals helps employees feel invested in the organization’s larger objectives, preventing disengagement and burnout. Understanding how their work contributes to the big picture keeps employees motivated and connected to the company’s mission. 

A disconnect between employee goals and organizational strategy is one of the top pitfalls in goals setting, according to McKinsey. The result? Demotivated and disengaged employees.

“You can’t measure progress against a goal if you don’t know what the goal is,” says Andrew Hibschman, VP of Customer Success with SkillCycle. “But visibility into company goals also allows for more organic cross-collaboration between individuals and teams.”

The impact of keeping company goals in sight for all employees goes beyond the efforts they contribute toward their own objectives. Knowing what other teams are working on enables employees to offer support and contribute beyond their immediate roles, adding value to the organization and providing personal growth opportunities.

In this piece on how to keep people focused on company goals, we’ll explore:

  • The impact of aligning employee performance goals and company goals
  • 6 ways leaders can keep people focused on organizational goals
  • Effective goal setting and performance management feedback in the workplace
  • The role of leadership in cultivating employees’ commitment to goals

 

The impact of aligning employee performance goals and company goals

While some leaders might feel confident that they’ve made their expectations clear at work, the numbers suggest employees have less clarity than leaders assume. Fewer than half of employees strongly agree they know what is expected of them at work, according to Gallup.

Aligning organizational and employee goals is essential to ensure everyone is pulling in the same, and more importantly, the correct direction. When employees understand how their individual goals align with organizational objectives, their efforts contribute meaningfully to the company’s success. 

Without this alignment, employees might achieve their personal goals but miss critical organizational targets, leading to a sense of failure and frustration. 

“When employees aren’t clear on which goals are most critical to the company, they may not realize how and where they’ll be held accountable,” says Hibschman. 

For example, someone on your marketing team might feel proud for accomplishing a particular project but, along the way, could miss a revenue target that is directly tied to a critical company outcome. This can be demotivating and disheartening for an employee who felt they were performing well.

Clear goal alignment prevents these issues by ensuring that all efforts are coordinated toward shared, strategic outcomes. This fosters a sense of purpose and contributes to the organization’s overall success.

 

6 ways leaders can keep people focused on organizational goals

Ensuring alignment between individual efforts and company objectives not only supports effective performance management, but also enhances engagement and motivation.

“Executive and senior leadership teams regularly discuss goal performance, tracking, and management,” says Hibschman. “But do they cascade these conversations down to their team? More often than not, there are gaps.”

Below are several key strategies that leaders can implement to maintain this focus and drive success.

 

1) Make goals visible to everyone on the team

Ensure all employees can easily see and understand the company’s goals. This helps them align their efforts with organizational objectives and understand the metrics by which leaders will evaluate their performance.

 

2) Discuss company goals and celebrate wins

Discuss progress toward goals regularly and celebrate achievements publicly. Recognize both individual and team accomplishments to reinforce the importance of goal attainment and foster a culture of accountability.

 

3) Create space for meaningful conversation and support

Hold regular check-ins and open discussions about goals. This allows employees to voice their challenges and contributions, ensuring goals remain relevant and achievable.

 

4) Provide consistent individual check-ins without assessment

Schedule one-on-one meetings to discuss goal progress without directly linking them to performance reviews. This supportive environment encourages employees to share their progress and seek help with obstacles.

 

5) Create a record of progress and obstacles

Keep a detailed record of goal progress, milestones, and obstacles. This documentation serves as a self-advocacy tool and helps employees and managers track and discuss achievements and challenges.

 

6) Provide meaningful incentives

Avoid superficial rewards and instead offer incentives that contribute to individual development. This could include sending employees to conferences, providing coaching, or other professional growth opportunities beyond simple acknowledgments.

 

Effective goal setting and performance management feedback in the workplace

Setting employee goals should fall right after any performance review to highlight a path to better outcomes. The goals should be clear and actionable to help employees improve and add meaning to the process.

If an employee has fallen short in their performance review, the immediate next step should be setting a goal that allows them to demonstrate success and overcome any obstacles,” says Hibschman. 

For example, if an employee exceeds their goals, their leader can give them stretch goals that promote growth and development, which will provide a sense of accomplishment and motivation. This connection ensures that effective performance management is not just about receiving a raise or promotion, but about setting employee goals that foster a deeper connection to personal and organizational objectives. 

When employees see that their feedback directly influences their goals, they are more likely to stay engaged and strive for continuous improvement, ultimately benefiting the organization.

 

The role of leadership in cultivating employees’ commitment to goals

By maintaining visibility and open communication around accountability and expectations, leaders ensure that goals remain a constant part of discussions. 

It’s a smart idea to have regular check-ins with your team to monitor progress and make goals a regular topic in meetings or feedback discussions. These conversations help avoid the surprise of unmet goals, which can quickly lead to disengagement of your employees.

“Leaders must be supportive of the process, not just the outcome,” says Hibschman. “If an employee is struggling, leadership should have an active role in helping them struggle less.”

Normalize having goal-related conversations outside of formal reviews to make these discussions less intimidating. Feedback provided regularly in casual settings helps employees feel more supported and committed to achieving their objectives.

When leaders prioritize visibility, communication, and meaningful feedback, they cultivate an environment where employees remain focused and invested in the company’s mission.Aligning company and employee performance goals can get your team members pulling together —  in the right direction. Ready to learn more? Schedule a demo today.

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