Ever wonder how the HR department manages to make the workplace happy and productive? I certainly have! And you know what? It all begins with setting the right HR goals. Just like we set our personal goals every new year, the HR team does the same for the entire company. In this article, I will be showing you how to set HR goals for the new year and even provide you with a super-helpful HR budget planning template.
Key Points
- HR, or People Operations, supports the organization by ensuring employee satisfaction and engagement throughout its lifecycle within the company.
- Effective HR goals should be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) to provide clarity and direction. Engage with all stakeholders to identify the company’s specific needs, such as hiring, training, or development, before establishing goals.
- Concentrate on vital aspects of HR, including recruiting, training and development, employee retention, compensation and benefits, and performance management.
- Collaborate with the HR team to develop goals, leveraging their diverse ideas and insights for more effective outcomes.
Setting HR Goals for the New Year

Setting goals in HR is similar to planning a fun road trip. You at least need to know where you’re going and approximately how to get there.
In this context, what are HR goals?
HR, or what you may prefer to call People Operations, is the backbone and perhaps the connecting force of the business. This department focuses on employee satisfaction, while other departments strategize, develop, promote, and execute the firm’s products.
Since HR goals are strategic, they assist the managerial and business levels to have a clear direction regarding modification to the experience of employees while in the organization throughout the life cycle. And like all of your company’s goals, the best HR goals are SMART:
Here’s how I approach setting fantastic HR goals:
#1. Understand the Needs of the Company
Before making any move, I talk to all! The MD, employees, and even a coffee machine (just kidding!)—to understand what the company needs. Is there a need to hire more people? Is there a need for more training? Once I understand the needs of the company, then I am ready to set goals that would help.
#2. Now, Make the Goals SMART

SMART is a cool acronym. It means specific, measurable, achievable, relevant, and time-bound. Let me break it down for you:
- Specific: The goal of “improve employee satisfaction” is too broad. A SMART-specific goal would be to “increase employee satisfaction scores by 15%.”
- Measurable: I have to be able to track the progress. It is easy with numbers or percent.
- Attainable: The goal must be challenging, yet not impossible. Like trying to jump over a small puddle, not the Grand Canyon!
- Relevant: The object of the goal should be what matters to make a difference to the company while enabling the eventual achievement of organization-wide objectives at large.
- Time-bound: There must be a deadline. “By the end of the first quarter” is a good time frame.
#3. Focus on Key Areas
HR does so many things; it’s good to focus on a few key areas. Some common ones I focus on include:
- Recruiting: Hiring is very important and a huge key to success. A good example goal here might be: “Reduce time-to-hire by 10%.”
- Training and development: The growth of the employees is indispensable. A good example could be “provide all employees with at least 20 hours of training.”
- Employee Retention: Retain outstanding employees. A suitable objective can be “Reduce employee turnover by 5%.”.
- Compensation and benefits: This will ensure that workers get a good deal in pay and pleasant benefits to attract and retain talent.
- Performance management: Setting expectations and regular feedback goes a long way toward the growth of employees.
#4. Involve the team
I make sure to include the HR team in the development of goals. They’re full of wonderful ideas, and that’s what a team is supposed to do.
#5. Raise the Target for Teamwork
Building mutual respect and cooperation can be challenging, particularly with distant teams.
Besides boosting morale, these kinds of partnerships can be crucial for monitoring the mental health and general well-being of distant workers you might not see often.
Check out: HR SOFTWARE SOLUTIONS: Best HR Software Solutions for Small Business
Over the following six months, increasing the number of team collaboration meetings by 10% might be a SMART target. Since it only truly calls for holding more meetings or strategy sessions with your team, this goal ought to be attainable.
#6. Establish Volunteer Initiatives for Employees.

The shift in generational participation in the workforce means organizations are discovering that different generations place different expectations on them.
It’s interesting to note that Millennials and Gen Zs are more socially conscious than their contemporaries, and they want workplaces to offer a level of participation not previously provided.
The objective is to ensure that employees truly participate in the program, though there are many approaches we might use in its design.
#7. Build a Culture that Supports the Employee
Let us recall the saying that we hear over and over, “Find a job you love, and you will never have to go to work again.”
The process of over-investing time to cultivate a positive organizational culture that has employees in mind first is the first way of attaining this HR goal—and hey, who doesn’t want that?
When we say ‘company culture’, it is not just about hockey, football, video games, and cold brew on tap. Rather, we are talking about the institutions that cherish the same ideologies, work-life ratio, and principles as you do.
Moreover, your people are everything! Treating your employees first as people, as individuals with lives, interests, and responsibilities to attend to, demonstrates care and respect.
Read also: Top Employee Engagement Metrics for Improving Workplace Culture
Here is an additional reason for companies to reconsider changing their organizational culture.
By making policies and guidelines such as health and safety policies, mental health policies, and work-life balance policies, companies can foster a healthier professional relationship among employees.
These efforts will not only enhance job satisfaction but also promote a supportive environment where individuals feel valued and understood.
Ultimately, nurturing a positive culture creates a foundation for long-term success, benefiting both the employees and the organization as a whole.
And from a pure HR manager perspective, creating a culture focused on your employees will get you farther, attract quality talent, and put you in a position of having a full staff eager to come to work every morning.
HR Budget Planning Template
Now, the fun part—budgeting! A budget is like a map for your money. It helps you track where your money is going and make sure you’re spending it wisely. Here’s a simple HR budget planning template I love to use, but first, let’s review some key terms:
What is a HR Budget Template?
HR Budget Template is simply a document that has details of the financial plan used in managing its human resources. It has applied approaches in assessing and planning for a number of HR activities, including recruitment, training, compensation, employee benefits and relations.
Why Do We Use An HR Budget Template?
A HR Budget Template is based on the management of valuable resources via the use of various human resource management strategies and the alignment with the organization’s overall strategy. It plays a role in estimating future expenditures on HR expenses, in monitoring actual spending, and in discovering overspending. HR departments use budget templates to make decisions, schedule events, and prove the efficacy of HR expenditures to managers.
HR budget templates are particularly crucial in situations such as
- Annual budget planning
- New project or initiative set up
- Increase or reduction of the number of employees
- Shifts in the packages of remunerations and incentives
- Merger or acquisition
Guide on How to develop an HR Budget Template
Here are some tips from experts to help you create an effective HR budget template:
- Involve key stakeholders: To meet all organizational goals, it is however, essential to work closely with the HR leadership, the finance department, and other department managers/generals for the best output. By collaborating with these key stakeholders, you ensure that diverse perspectives are considered, which helps in fostering a more comprehensive approach to decision-making. Additionally, involving multiple departments promotes a holistic understanding of the organization’s needs and goals.
- Consider historical data: Revising prior data of the HR budget and expenditures allows you to draw out trends, patterns, and opportunities for development. By doing so, you can facilitate accurate predictions and the establishment of credible goals in the business. This, in turn, ensures that future strategies are well-informed and effective.
- Be flexible: Including flexibility in the budget templates is essential to account for anticipated changes in the business environment. Flexibility provides the great potential to allow for a course of corrective action and other reallocations to be made as required. This adaptability ensures that the organization remains agile and responsive to evolving needs.
SEE: HR REPORT SAMPLES AND TEMPLATES: A Guide to Perfect HR Reporting
What are the factors behind the success of an ideal HR budget template?
- Accuracy: The HR Budget Template should provide reliable estimates and projections to ensure the budget is reasonable and feasible. In doing so, it allows for more precise financial planning and reduces the likelihood of errors.
- Comprehensiveness: These are tables and columns of budget classification that must be included in the template in order to capture all aspects of the organization’s HR expenses. By doing so, the template ensures that no important detail is overlooked, providing a thorough overview of financial needs.
- User-friendly: The template should be easy to comprehend and use, with explicit instructions and an intuitive design. This makes it accessible to all users, regardless of their level of financial expertise. Moreover, a user-friendly template encourages better engagement and efficiency in managing HR budgets.
- Flexibility: The template should allow for customization and updates to fit individual HR budgeting demands and changes in the business. This flexibility ensures that indeed, the template can adapt to new circumstances, ensuring ongoing relevance and effectiveness.
- Integration: The template should be compatible with other financial management systems or applications to allow for easier data integration and analysis.
- By integrating seamlessly with existing systems, the template explicitly, facilitates smoother workflows and enhances data accuracy across platforms.
A Comprehensive HR Budget Template Outline
I. Overview
A. The HR budget template’s goal
B. A summary of the template’s sections and elements
II. Personnel Expenses
A. Wages and salaries
- Positional breakdown and associated compensation
- Annual salary expense calculation
B. Benefits for employees
- Health coverage
- Plans for retirement
- Paid time off
C. Education and training
- Spending plan for staff training initiatives
- The price of hiring outside training providers
- Resources and costs for internal training
III. Recruitment and Hiring Expenses
A. Job advertising
- Set aside money for print ads, internet job boards, etc.
- The price of advertising job openings
B. The system for tracking applicants
- Expenses associated with software licenses or subscriptions
- Costs of implementation and upkeep
C. Pre-employment screening and background checks
- The cost of background check services
- Costs associated with drug testing
IV. HR Technology Costs
A. Human Resource Information System (HRIS)
- Fees for software licensing
- Costs of implementation and customization
- Expenses for upkeep and assistance
B. Method for tracking attendance and time
- The price of hardware or software solutions
- Payroll system integration
V. Wellness and Employee Engagement Initiatives
A. Rewards and appreciation for employees
- Set aside money for recognition initiatives (such as employee of the month).
- The costs of incentives or prizes
B. Programs for employee wellness
- Programs for health and wellness
- Fitness classes or subscriptions to a gym
- Counseling services and resources for mental health
VI. Legal and Compliance Costs
A. Fees for HR legal counsel
- The cost of legal counsel or representation
- Hourly rates or retainer costs
B. Compliance audits and training
- Funding for labor law and regulation training initiatives
- The price of outside evaluations or audits
VII. Miscellaneous Expenses
A. Office supplies and equipment
B. Travel and lodging
VIII. Budget Summary
A. Total estimated expenses for each category
B. Comparison with the budget from the previous year
IX. Conclusion
Here’s a simple HR budget planning template I love to use. This was curated by our team of HR specialists to give guidelines and insights on how an HR budget template should look like.
Actionable Tips for Practical Use
Here are some extra tips I’ve gathered over the years:
- Regularly review your goals: Don’t just set them and forget them! Check in on your progress regularly and make adjustments as needed.
- Celebrate successes: When you achieve a goal, celebrate! This helps motivate the team and keeps everyone engaged.
- Communicate with employees: Keep employees informed about HR goals and how they contribute to the company’s success.
How Do You Set New Goals for the New Year?

Use these guidelines while creating your New Year’s resolutions to ensure your success:
- Be practical.
- Put it in writing.
- Create a strategy.
- Be adaptable.
- Make use of reminders.
- Monitor your progress.
- Give yourself a reward.
What Are Good Goals for HR?
HR should aim to improve diversity, work culture, and employee engagement while also making sure that employees are retained. Employee health, performance management, and training and development are other areas of attention for HR specialists.
What Is an Example of a Smart Goal for HR?
A specified, measurable, attainable, relevant, and time-bound goal is known as a SMART goal in human resources. Here are a few HR SMART goal examples:
- Boost the retention of employees: Establish a target to raise staff retention by a given percentage. Historical data may serve as the basis for this objective.
- Boost employee engagement: Aim to boost staff engagement, since this can result in increased output and less attrition.
- Develop your knowledge of diversity and inclusion. Make it your mission to master diversity, equality, and inclusion (DEI). Creating DEI training and tactics is one way to do this.
- Encourage employee well-being: Make it a priority to encourage employee well-being by providing mental health resources, flexible work schedules, and wellness initiatives.
How Do You Set Work Goals for the Year?
How to Create Work Goals: A Useful Manual
- Determine your priorities and values.
- Monitor Your Time.
- Decide on your objectives.
- Make your goals a priority.
- Examine and adjust your objectives.
- Develop better time management techniques.
- Concentrate your attention.
- Increase Your Output.
Conclusion
Setting HR goals for the new year is a crucial part of ensuring the company’s success. Using the tips and template I’ve shared in this article will definitely help you to create goals that are SMART, effective, and beneficial for both the company and its employees. So, go forth and set those fantastic HR goals! I know you can do it!
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