2025 UK Employment Law Changes

Performance Management 2 min read

What are the best practices for setting employee objectives?

Reviewed by Rebecca Hughes, Senior HR Consultant, CIPD Level 7 Last updated: 12 March 2026
Expert Answer

Clear objectives are the foundation of effective performance management. Without them, employees don't know what's expected, managers can't measure performance, and your business has no defence if an underperformance dispute reaches a tribunal.

The SMART Framework

  • Specific — "Increase customer satisfaction scores" not "do better with customers"
  • Measurable — include numbers, deadlines, or clear criteria for success
  • Achievable — stretch targets are fine, but unachievable goals set employees up to fail
  • Relevant — aligned with the team and business objectives
  • Time-bound — a clear deadline or review date

How Many Objectives?

Aim for 3-5 objectives per review period. Too many dilutes focus; too few limits growth opportunities. Include a mix of:

  • Performance goals (output and results)
  • Development goals (skills and learning)
  • Behavioural goals (teamwork, communication, values)

Setting Objectives Fairly

Objectives must be fair and non-discriminatory. Consider:

Review and Adjust

Objectives shouldn't be set and forgotten. Review them at appraisals and adjust if business priorities change. Regular check-ins keep objectives relevant and employees motivated.

Our performance management service includes objective-setting frameworks and manager coaching. Talk to our team.

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