Setting SMART Objectives for Appraisal Examples

When appraising employees’ performance, you need clear objectives. When management sets these objectives, team members have concrete goals and skills to focus on. 

While there are many different frameworks for setting employee goals and promoting development, the SMART model is one of the most impactful. 

Here’s how you can start setting SMART objectives for appraisal examples.

First, you should learn the SMART framework and why your organisation should use it.

SMART is an established appraisal framework for creating effective objectives in employee appraisals. The acronym stands for:

• Specific: Objectives must be unambiguous 
• Measurable: Progress and outcomes must be trackable with data 
• Achievable: Goals should be realistic, considering employee skills and available resources 
• Relevant: Objectives must align with both role requirements and organisational priorities 
• Time-Bound: Every objective needs a deadline or timeframe for completion 

By applying this framework, you can improve the way you set goals and help employees strive for these objectives with time-bound targets.

Without clear goals, appraisals easily become subjective and unproductive. SMART objectives remove ambiguity and provide your team with direction and clarity. 

This approach also makes the appraisal process more consistent, supporting managerial policy and encouraging transparency across the organisation.

Using SMART objectives to support employee performance reviews delivers the following benefits:

When SMART objectives are used effectively, individual goals connect directly to wider organisational strategy. 

This ensures that employee efforts contribute to business outcomes, boosting productivity and helping managers maximise employee value.

Employees are more likely to take ownership of their work when expectations are clear. 

SMART objectives foster accountability by giving employees measurable performance standards while also enabling managers to assess contributions fairly.

Because SMART objectives are measurable and time-bound, managers can monitor progress throughout the year. 

Regular updates and managerial rituals help track development and make adjustments where necessary.

Here’s a closer look at how you can create SMART objectives for your staff.

A vague goal like “improve communication” leaves too much room for interpretation and actually sets your team up for failure. 

Instead, your objective needs to be specific: “Conduct a weekly team meeting to share updates and gather feedback.” This provides a clear direction for the employee.

Objectives should be tied to metrics. For example, “Achieve a 10% increase in customer satisfaction scores over the next six months.” 

You can clearly evaluate whether the goal has been met during an appraisal.

Objectives must be challenging enough to promote growth but realistic given employee capacity. 

For instance, asking a junior employee to double sales within one month is unrealistic. On the other hand, increasing monthly sales by 5% over a quarter is attainable. The idea is to push your employees to do their best and give them goals they can reach.

Each objective should align with the employee’s role and the company’s priorities. 

For example, a marketing professional’s relevant objective might be “Create three case studies to support lead generation campaigns in line with organisational strategy.”

Time limits drive focus and accountability. Objectives like “submit weekly reports by 3 p.m. every Friday” keep people accountable and allow you to measure performance at specific intervals. 

Your employees either meet their goals by the set deadlines or don’t.

Here are some examples of SMART objectives for appraisals. You can use these to start creating your own goals to drive employee development and productivity.

Sales and revenue growth objectives are some of the easiest to track and measure. Here’s an example:

• Specific: Increase monthly sales revenue by 8% by the end of Q3 through targeted prospecting 
• Measurable: Track sales growth through CRM data
• Achievable: Set targets based on the current client portfolio and market conditions 
• Relevant: Align with the organisation’s revenue strategy 
• Time-Bound: Deadline of Q3

Remember, you want to push your team to do their best without setting them up for failure or driving them to exhaustion.

One of the trickiest parts of setting customer service goals is making sure they are measurable. 

However, it’s still possible. Here’s an example: “Achieve an average customer satisfaction rating of 90% or above in post-service surveys within six months.” Another goal could be: “Respond to all customer queries within 24 hours to enhance satisfaction.”

When pushing team members to build new skills or meet training objectives, you could set SMART goals like:

• Complete two training modules on advanced Excel by the end of the next quarter to improve reporting accuracy
• Attend a leadership development programme within the next 12 months to prepare for future management responsibilities 

You’ll also need a way to determine whether the training goals promoted growth.

Some process improvement goals include:

• Reduce the average processing time for POs by 15% within six months
• Implement a new filing system to reduce document retrieval time by 20% by year-end

These goals have longer timelines because achieving them often involves implementing new technologies or processes.

When setting SMART objectives for appraisals, look out for these mistakes:

Objectives like “improve performance” lack clarity. Employees need direction that is specific and actionable.

Unrealistic goals can leave your team feeling defeated and damage trust. Objectives must balance ambition with practicality to reflect real workplace conditions.

Failing to define time-bound elements makes objectives harder to track. Regular performance review cycles should be embedded to evaluate progress.

Here’s how to determine whether your SMART objectives are making an impact and when they need to be revised.

Objectives need to be assessed throughout the year. Mid-year reviews give employees the chance to adjust, improve, and refocus. Managers can also use these sessions to give feedback.

The company’s needs can shift. When they do, you need your objectives to change, too. Focus on creating flexible objectives that you can change to reflect new priorities.

Feedback loops between managers and employees ensure objectives remain relevant. 

Over time, this practice supports the development of characteristic traits of great managers.

Adopting modern tools can help you set and meet SMART objectives. Here are some resources to consider:

Digital tools streamline the management of performance data. Use them to ensure that objectives are tracked consistently. 

These platforms are easy to update and allow you to set reminders or engage in progress tracking.

Templates give managers a structured way to document objectives and check alignment with the SMART framework. They also ensure consistency across the organisation.

Providing training helps managers write practical SMART objectives and improves consistency across departments. 

This professional development builds confidence in handling appraisals and ensures fair, equitable outcomes.