Now, let’s re-formulate through using the SMART framework:
The HR manager should improve the company’s annual employee retention from 55% to 60% by the end of Q2 of 2022 by using the information from exit surveys to understand why employees are leaving and act on it
Let’s use the same example of improving employee retention rate to see how you’d write a SMART goal.
Your current goal is to improve your company’s annual retention rate. As we discuss next, you then use each component of the framework to convert it into a SMART goal.
Your goals need specificity. Improving retention rate is great, but to turn it into a specific goal, you also need to determine who will be accountable for the improvement, and the course of action required to achieve this goal.
Essentially, specific goals answer three questions:
What you want to achieve: Increase the annual employee retention rate from 55% to 60%.
The person accountable for the goal: In this case, an ideal person to be held accountable for the goal can be the HR manager.
Course of action: Use the exit surveys to understand why employees are leaving the company and address those issues.
Once you’ve got clarity on precisely what you want to achieve, you need to quantify your goal.
Quantifying will help you keep track of the progress so you can determine how far you’ve got to go before achieving the goal.
Improving the annual employee retention rate isn’t a measurable goal. If your retention rate improves by 0.1%, that’s still an improvement. Does that mean you’ve accomplished your goal, and you can move on to other goals?
Making your goal measurable by saying that you’re aiming for an improvement of X% helps you track your progress.
In our example, you want to achieve an annual employee retention rate of 60% (currently 55%). After Q1, if your annual employee retention rate is 58.5%, you know you’re halfway there, but you still need to keep working towards it.
Your goals should be realistic. You may want to encourage your team to push their limits, but setting realistic goals is critical to their morale.
For instance, if you choose to achieve an annual employee retention rate of 75%, you must ask yourself if a 20% improvement within two quarters is a reasonably achievable goal.
It’s also helpful to involve the person who’s to be held accountable for achieving the goals during the goal-setting phase itself. Ask them if the goal is achievable and try to understand the bottlenecks they might face along the way.
If the HR team says a 20% improvement isn’t realistic to achieve within two quarters, work with them to determine what would be a more realistic number to achieve within two quarters.
Zoom out for a moment.
If you’re setting a goal to improve your employee retention, how does it help the company achieve its business goals? Does the company have other goals that need to be prioritized right now?
Make sure the goals you set for your team are relevant for the current state of your company, and that they will help achieve the company’s overall objectives.
Referring to our example, improving the annual employee retention rates can reduce costs incurred towards talent scouting, onboarding, and training. Its impact can show up in the company’s bottom line, and optimizing profits is certainly a core objective for businesses.
If you don’t give yourself a target date to achieve a goal, you’ll significantly reduce the chances of achieving it. You might get stuck in a state where you keep pushing it back but never really start working on it.
Setting a target date can also help you track the progress of your goals and understand how the strategy is performing over time. This will allow you to optimize your strategy if needed and allow you a chance to get back on track.
In our example, the HR team’s goal is to improve the annual employee retention rate by 5%. But when does the team need to achieve this goal by—a year, two years, or five years?
When you add a target date, i.e., by the end of Q2 of 2022, you give your team a sense of urgency, making them more likely to achieve the goal.
SMART goal example
You can convert any goal into a SMART goal. Here are two examples of regular goals turned into SMART goals.
I want to diversify my product portfolio: I want to diversify my product portfolio with three new products by the end of Q2 of 2024 by setting up an R&D team that will work on product design.
Provide more training to the HR team: I want to increase the number of weekly training hours for the HR team from 3 hours to 5 hours by the end of the current quarter by automating a portion of the HR processes, which will free up some of the team’s time.
Set Yourself Up for Success With SMART Goals
Writing SMART goals doesn’t take a lot of time. You simply need to make sure that you write a goal that checks all the five boxes by being specific, measurable, achievable, relevant, and time-bound.
Now that you know how to write SMART goals, you can be more proactive about helping the company achieve its objectives.