Performance goals are a practical tool for building talent and adapting to change. They also play a vital role in employee wellbeing and the employee experience, helping people feel confident, motivated and aligned with business needs. However, organizations and employees only get these benefits when performance goals are created thoughtfully and supported in the right ways.

Too many performance goals or too little support can dilute focus and effectiveness. As in many other areas both in business and life, striking the right balance is key. The right number of well-supported performance goals will help employees stay engaged and productive, while also helping organizations build the skills they need to keep up with emerging technologies like AI.

In this article, we highlight cross-industry data on the number of performance goals employees are expected to meet and share guidance for how HR leaders can:

• Make this a collaborative process
• Equip managers and employees with the right training to set appropriate goals
• Provide ongoing support to employees as they pursue their goals

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Finding the right number of performance goals

As part of a broader performance management survey, we asked employees to tell us the number of formal, documented performance goals they are expected to achieve for the year. Nearly half of surveyed employees (46%) told us they had four to six goals, while 35% had one to three. Considerably fewer had more than six performance goals (Figure 1).

There is no one-size-fits-all answer for how many performance goals your employees should have. The right number will depend on your business goals, your industry and other factors that are unique to your organization.

However, there is a point at which the number of performance goals will outstrip an employee’s capacity and also your ability to provide meaningful support to them. It’s telling that more than 80% of our respondents have six or fewer goals.

Below, we lay out three principles for how you can build a culture of meaningful, balanced goal setting and support employees as they pursue their annual performance goals. Consider the number of goals that your HR function and managers could realistically support with this framework while also helping employees grow and meeting your business objectives.

Follow these practices to find balance in goal setting

Make goal setting a collaborative process

A collaborative goal-setting process helps employees set realistic goals that align with the business. It also helps the business to balance enterprise objectives with operational realities.

Fewer than half of the employees we surveyed (48%) were able to set their performance goals collaboratively with their manager. We recommend that you make goal setting a collaborative process for at least three reasons:

• Employees who participate in designing their own goals feel a greater sense of ownership over them.
• Collaborative goal setting provides opportunities for employees to hear how their work aligns with enterprise-level strategy and goals.
• Employee feedback helps to balance enterprise-level goals with operational constraints. Employees may be the first to sense the need for new goals in light of changing conditions on the ground.

Managers play a key role in these conversations by helping employees set appropriate goals and connecting the dots to business objectives.

Train managers and employees for effective goal setting

Setting realistic and meaningful performance goals is more challenging than many people realize. Performance goal setting needs to strike a balance between engaging employees with a good challenge and overwhelming them with tasks that they can’t possibly accomplish.

Provide training for managers so they can effectively help employees achieve this balance and set realistic, achievable goals that contribute to the business. Training for managers should provide guidance for how to facilitate goal-setting conversations, help employees think strategically and creatively about their goals, and provide support for employees as they work toward their goals.

Employees want a fair and transparent approach. For our respondents, “knowing what is expected of me” is one of the most important elements of the entire performance management process (56% of respondents), second only to having attainable goals (60%). The goal-setting process should be simple and well-documented, with timelines and expectations that are easy for employees to understand.

Provide ongoing support

In many organizations, goal setting is an annual event, and goals aren’t revisited until the employee’s yearly performance review. Instead of staking everything on one or two conversations, add balance by having managers meet with employees at least quarterly to review goals, assess progress and provide support as needed.

The speed at which the business environment changes today often makes goals outdated even a few months after they are set. Meeting more regularly enables managers and employees to realistically evaluate performance goals, determine if they are still feasible and worthwhile in the current business environment and adjust as needed. Two-thirds of our respondents (66%) told us that their goals could have changed if business priorities or conditions had changed. Making these adjustments isn’t about moving the goalposts—it’s a pragmatic way of ensuring that goals are still meaningful both for employees and the business.

Build a culture of balance

As organizations race to adapt to new macrotrends and adopt new technologies, it’s easy for employees to get pulled in many different directions. Don’t leave goal setting to chance. Aim for a collaborative process that empowers employees and managers with the resources they need to set goals that are meaningful, realistic and responsive to what your business is facing today. Striking the right balance is essential not just for organizational success but for supporting employee wellbeing in a world of constant change.

Data in this content was accurate at the time of publication. For the most current data, visit www.apqc.org.