Goal Setting Policy Template

Goal Setting Policy

Purpose of Goal Setting Policy

The Goal Setting Policy explains how [Company Name] establishes, documents, and reviews employee goals to align individual performance with organisational objectives. The policy provides a clear and consistent approach to setting measurable goals, submitting changes, and conducting regular reviews to support performance development and accountability.

Scope

This Goal Setting Policy applies to all employees of [Company Name], including full time, part time, temporary, and contract staff involved in individual or team goal setting as part of performance management, career development, or operational planning.

Policy Principles

[Company Name] uses a structured goal setting approach that is transparent, measurable, and time bound. Goals should support business priorities and individual development. Employees and managers share responsibility for creating goals that are realistic, aligned with role expectations, and appropriate to available resources.

Goal Framework and Criteria

Goals set under this Goal Setting Policy should be specific, measurable, achievable, relevant, and time bound. When establishing goals, employees and managers must consider the following:

• Relevance to team and company objectives
• Clear performance measures or indicators
• Reasonable timelines and milestones
• Expected outcomes and success criteria
• Any required resources or dependencies

Goal Setting Process

Goals are created through a collaborative discussion between the employee and their manager. The typical steps under this Goal Setting Policy include:

• Initial goal discussion at the start of the performance period or when objectives change
• Documentation of agreed goals in the company performance system or a written record
• Mid period check ins to review progress and update goals if necessary
• End of period review to assess achievement and inform development planning

Goal Review and Feedback

Regular progress reviews are required to support goal achievement and provide timely feedback. Managers should provide constructive feedback, track performance against agreed measures, and update goals when business priorities or role responsibilities change. Employees are expected to actively participate in reviews and provide evidence of progress when requested.

Documentation and Record Keeping

All goals and review notes created under this Goal Setting Policy must be recorded in the approved company system or retained in the employee file. Records should include the goal statement, metrics, target dates, review notes, and any agreed adjustments. Documentation supports consistent decision making and provides a basis for performance discussions.

Approval Process

Final approval of goals normally rests with the employee s manager. When an exception or change to an approved goal is requested, the change must be documented and approved by the manager. Significant deviations from standard timelines or resourcing that affect team performance require HR review and may require senior manager approval. Requests for exceptions should include a rationale, impact assessment, and proposed mitigation steps.

Role of Managers and HR

Managers are responsible for guiding goal setting conversations, ensuring goals align with team objectives, monitoring progress, and delivering feedback. Managers must ensure goals are fair, measurable, and documented in accordance with this Goal Setting Policy. HR provides policy guidance, supports managers with tools and training, reviews exceptions, and maintains goal setting records where applicable.

Non Compliance

Failure to follow the Goal Setting Policy may affect performance assessments and development opportunities. Non compliance includes failure to set goals, to participate in scheduled reviews, or to document agreed objectives. Consequences may include formal coaching, remedial performance plans, or other corrective actions consistent with company policies on performance management. Sanctions will be applied proportionately and in line with established HR procedures.

Note

This Goal Setting Policy may be updated from time to time to reflect business needs or improvements in practice. Employees should consult their manager or HR for clarification on how the policy applies to their role and to confirm current procedures under this Goal Setting Policy.