Employers play an important role in supporting employees in achieving their goals, ultimately resulting in a happier, and more productive, workplace culture.
The Importance of Setting — and Achieving — Goals
Specific, targeted goal setting is tied to increased performance, focus and motivation. For this reason, structures like the OKR framework are becoming increasingly popular in many organizations for creating scalable organizational growth.
On an individual level, setting and achieving goals is important to personal and professional growth. Conversely, when we fail to meet our individual goals, we face serious personal and professional consequences.
For example, in studies where organizations relied exclusively on “stretch goals’’ — defined for the study as goals that only 10% of employees could realistically achieve — to maximize performance, individual performance actually suffered. In addition to reduced engagement, employees in these companies exhibited reduced organizational citizenship and lower motivation for approaching high-priority tasks.
The same is true of personal goals. When we set goals — whether to run daily, reduce our burrito intake or spend more time “unplugged” with loved ones — and then fail to meet them, our self-esteem, motivation and mental health all pay a price.
Why Supporting Personal Employee Goals Makes Business Sense
Beyond improving individual morale, supporting employees in their personal and professional goals makes sense.
According to Q4 data from the U.S. Bureau of Labor Statistics, the U.S. has more than 10 million job openings and an estimated six million worker deficit for needed jobs. In this “seeker’s” job market, attracting and retaining talent becomes key, and studies published by the Harvard Business Review stress the importance of personal growth opportunities in individual decisions to join, stay at or leave a company.
Furthermore, many personal goals — especially when it comes to New Year’s resolutions — aim to improve health, relationships and career. In fact, of individuals who set 2021 resolutions:
• 50% focused on improving fitness and exercise.
• 48% focused on losing weight.
• 44% focused on saving more money.
• 39% focused on improving diet.
• 21% focused on pursuing a career ambition.
• 18% focused on spending more time with family.
As employees improve their health and relationships, they’re able to bring their best selves to work (or even push for that next promotion). In other words, when we empower our employees to be their best, our organizations benefit as a result.
How to Support Employees This Year
So, with 92% of people falling short of their New Year’s resolutions, how do we support our employees in achieving their goals?
The science of behavioral economics outlines key principles for supporting and nudging individuals in making good choices and creating the lasting change we aim for with our personal and professional goals. Here are three, behavioral economics-proven, ways to get started:
Tip 1: Focus on Daily Behaviors
Addressing large goals starts with breaking things down into smaller, measurable steps (another reason the OKR format has become so popular).
When it comes to achieving personal goals, setting daily performance indicators can help individuals break down large goals into smaller, more manageable daily wins. Whether that’s drinking 64 ounces of water a day, meditating daily to be more present or achieving “inbox zero” by the end of each workday to improve organization, help employees identify and build daily habits they want to pursue to achieve their goals.
Tip 2: Be Deliberate About Choice Architecture
Choice architecture, a key principle of behavioral economics, suggests that the way options are presented — especially when it comes to default options — can make a big difference in what people ultimately choose.
For example, in countries where organ donation is the default option at death, more than 90% of individuals register to donate their organs. However, in countries like the U.S. where individuals must actively opt-in to donate organs, only 15% of people register.
In the office, or home office, we can be deliberate about our choice architecture in what we offer — making it easier for employees to make healthier choices. Simply stocking healthy snacks in the break room, providing readily-available options for standing desks or shortening meetings by 10 minutes to allow employees to stretch, take a quick walk around the block or get a drink of water between back-to-back Zoom meetings are all great starting points.
Tip 3: Celebrate Their Wins … With Incentives
When it comes to investing in employee growth, sometimes an actual financial investment is the best catalyst for change.
Studies show that offering incentives can significantly impact behavior, whether it’s offering a reduced price for health insurance for employees who complete their annual physical or rewarding the department with the highest resolution success rate with company-branded hoodies.
In behavioral economics, subtle, frequent incentives play a key role in nudging individuals to make certain choices. For example, offering small financial incentives for key daily task can further support employees in forming important daily habits that will last — compared to larger, one-time incentives that address only periodic behaviors. Furthermore, if these incentives are offered for resolutions and personal goals that address employee health, companies may reap the benefits of a healthier workforce: reduced sick days and absenteeism, more focused employees at work and lower health insurance costs as more costs are prevented upfront.
Focusing on the Individual
In healthcare, research shows that 40%-50% of health outcomes are determined by individual behavior, which means there is only so much we can offer as providers to improve health outcomes.
Similarly, it’s time to recognize that policies and protocols only go so far in boosting job performance. The rest comes down to the individual. By investing in our employees — inside and out of the office — we support them in achieving their personal and professional goals, enabling them to bring their best selves to work each and every day.
