Target setting

Target setting means identifying particular goals an employee has to achieve within a timeframe. A useful target is clear enough to measure, so everyone can tell whether it has been met. For example, a garden centre might ask each checkout worker to serve 20 customers per hour by 30 June, or aim to raise its customer satisfaction score to 90% by the end of the year.

Target setting can improve a business's productivity (how much each employee produces in a given time) and efficiency (how well a business uses its resources to get things done). Employees know what they are aiming for, so they waste less time guessing what matters. Managers can monitor progress and spot who needs help. Targets also link each person's work to the business's aims: if the business wants faster service, individual targets can focus on serving customers more quickly.

Targets and training

Training and development help employees gain the skills and confidence needed to meet targets. If a target needs a new skill, the business may provide training first, such as showing a worker how to use a new stock-counting app before expecting them to count stock accurately. If the employee still struggles after training, the target may be unrealistic, or the person may need further development.

Targets must be fair, achievable and checked. A target that is impossible or never measured can demotivate staff rather than push them forward, so managers review progress and adjust the target if circumstances change.