Employees who understand their own goals in an organization will naturally get more engaged in what they do. Engaged employees are loyal and committed to the company. They are ambitious, develop positively and take responsibility. It is therefore logical that a higher employee engagement is closely linked to more customer satisfaction, customer retention, productivity, and profit. Goals give an individual more purpose in life and something to look forward to which in turn increases performance.
When setting new goals it is essential to keep in mind that the best goals are formulated SMART: specific, reasonably, measurable, attainable and time-bound. Many employers put systems like this in place to justify promotions, bonuses or raises. In such systems, a number of employee goals must first be attained before they can come into consideration for a higher level job.