Addressing Employee Turnover with SMART Goals

 

Addressing Employee Turnover with SMART Goals

High employee turnover poses a substantial challenge for many businesses, leading to decreased productivity, lower morale, and immediate financial impacts. To address this issue effectively, adopting a structured approach like the SMART Goals framework can be highly beneficial. As Doran (1981) outlined, SMART Goals are Specific, Measurable, Achievable, Relevant, and Time-bound. By applying these principles, organizations can create a more stable and satisfied workforce.

Let’s explore how SMART Goals can help in building a more resilient and engaged team in telecommunication sector.

Specific

A specific goal provides a clear path forward, eliminating ambiguity and allowing for more targeted efforts and resource allocation. It details what needs to be accomplished, who will be involved, where the action will occur, when it should be completed, and the reasons behind its importance. Clear goals provide employee to understand exact expectation of the organization form them. As an example, to increase sales target of a sales team, the employee is expected to deliver 5% increase of the number of subscriptions for 5G broadband in large enterprise sector. In this scenario, the sales executive can set their own goals and plans specifically to meet this company goals without any complexity and it reduce confusion. This clearly help to focus their effort on the given time period to give their maximum contribution to deliver the set target. In this scenario employee’s job satisfaction enhancement can be seen while turnover is minimized.

Measurable

Setting measurable goals is key for monitoring progress and determining if objectives are being met. This involves defining specific criteria, such as numerical targets or percentages, that can be tracked. Measurement not only boosts motivation but also provides the opportunity to adjust as needed (Klein et al., 1999).  Having measurable goals are important when achieving specific target for the employee. As an example, Dialog Axiata PLC always set goals for each and every department to meet their performance levels.  Maintaining 98% of the collection target all over the year is measurable and tracked based on monthly achievement reports. But there are some arguments that collection report numbers do not show exact effort put by the employee to achieve the goal. Sometime the numbers may not be achieved, but the employee has learned selling skills, problem solving skills, negotiation skills to improve those can contribute to their future job performance. But this type of achievement is not tracked in such goals.  

Achievable

The employee is committed to the goal when the specific goal is achievable. When someone pursues a goal, they will only be satisfied upon reaching it. Therefore, goals act as the reference points for determining whether one feels satisfied or dissatisfied (Mento at el, 1992) .According to Locke (1991b), the "motivation hub" includes personal goals, commitment to those goals, and self-efficacy.  Goal should be achievable and also challengeable. This is the point where the employee is growing and satisfied.  Therefore, the goal should not be always very easy to achieve and it always should have with potential barriers. As an example, Sri Lankas telecommunication sector is basically playing by two monopolistic players, Dialog and Mobitel. The target audience is same and the people are already connected to one of those service. In this scenario, it’s difficult to activate a new customer rot Dialog who is already a current customer of Mobitel.  This is challenge yet achievable.  Another example is setting a goal to train and certify an advanced project management team within the next 12 months. This goal is both achievable and challenging. One concern is that employees may seek new opportunities, potentially leading to a loss of investment if they leave the company midway through the training. Therefore, management must have a clear understanding of the employees’ true expectations to ensure that training investments are well-aligned with retention strategies.

Relevant

Relevant goals are those that align with the organization’s mission, vision, and strategic priorities. They ensure that individual efforts contribute to broader objectives and support long-term plans. This alignment helps to maximize resource efficiency and fosters a cohesive approach to achieving organizational goals ( Doran,1981).   The relationship between goal performance and commitment is stronger when individuals are highly dedicated to specific goals (Latham, 2000). Commitment plays a crucial role in achieving these goals (Klein et al., 1999).   Focusing on expanding 5G network coverage across the island is a crucial and relevant goal for the team. This initiative will not only boost sales growth and profitability but also contribute to overall satisfaction.  

Time-bound

Setting specific deadlines for tasks is crucial for fostering accountability and prioritization within teams Doran (1981). For instance, a clear deadline like "development of a new software feature by December 2024" provides a definitive target, which helps in focusing efforts and ensuring timely delivery. This approach can significantly boost efficiency and productivity. However, challenges arise when deadlines are set by higher management without consulting the team members responsible for the work. If a project realistically needs more than 6 months to complete but is given a 6-month deadline, it can lead to performance issues, employee dissatisfaction, and potentially higher turnover. To address these challenges, it is essential to involve middle management and team members in the goal-setting process. By collecting their feedback and insights, organizations can set more realistic deadlines, improve morale, and enhance overall performance

 

Reference

Doran, G.T. (1981) There’s a SMART Way to Write Management’s Goals and Objectives. Journal of Management Review, 70, 35-36. , Available at ::https://community.mis.temple.edu/mis0855002fall2015/files/2015/10/S.M.A.R.T-Way-Management-Review.pdf  (Accessed: 6 August 2024).

Locke, E.A. and Latham, G.P., (2002). Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-Year Odyssey. American Psychologist, 57(9), pp.705-717.

Klein, H., Wesson, M., Hollenbeck, J., & Alge, B. (1999). Goal commitment and the goal-setting process: Conceptual clarification and empirical synthesis. Journal of Applied Psychology, 84, 885–896.

Mento, A., Locke, E., & Klein, H. (1992). Relationship of goal level to valence and instrumentality. Journal of Applied Psychology, 77, 395– 405