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4th September 2019

Employee Engagement Metrics that Matter

If you’re one of the many organizations that has jumped on board with employee engagement recently due to the countless statistics and research findings supporting it’s effectiveness, your next question is more than likely how to measure your improvements.

While we briefly introduced you to this in our posts on the ROI of employee engagement and how to measure team building effectiveness, many people are unsure exactly which metrics or KPIs to use in order to judge the improvements they experience from working on employee engagement.

We’ll list some of the best employee engagement metrics to use, but first, how do you even judge them?

Let’s jump right in:

 

How to Measure Employee Engagement

If you have a thriving culture with open communication you likely already know how engaged your people are just from talking to them. But the larger your business the more difficult it becomes gauge this effectively. Here are a few strategies to gather insights more efficiently:

 

Surveys

Most businesses have a yearly employee engagement survey which gathers a massive amount of data, takes a long time to review and even longer to implement. A better tactic is to send out pulse surveys in addition to or in replacement of annual surveys. 

Pulse surveys gather real-time and continuous feedback from the workforce giving employers a real time snapshot of how people are feeling. They give managers and HR teams the opportunity to respond to any issues affecting engagement levels quickly and show employees that they are being listened to.  These ideally anonymous surveys should be about 5 – 10 questions long. Many average between 3-6 questions and focus on a specific area for improvement.

With the anonymity and simplicity of filling in a short survey, you can expect a higher participation rate and more honest answers.

 

Quarterly Staff Reviews

Quarterly reviews are common in terms of assessing a team member’s performance and how well they will fit into the organization going forward, but how often do you review things the opposite way around?

Simple questions such as “what tempts you to stay here?”, “what tempts you to leave?”, and “how would you ideally like your role to develop?” can provide tons of insights.

 

Act on The Results With Transparency

The worst thing you can do after running an employee survey or review as discussed above, is to do…nothing. 

This just signals to your workforce that efforts are merely a tick boxing exercise and won’t truly stimulate any change. 

The result? 

They won’t bother thinking about their answers in too much depth next time.

Discussing the overall results, selecting a few key areas to improve, and following up on actually doing them, signals to your team that employee engagement is a priority for the company, which, ironically, can boost engagement in itself.

With all of that said, which are the best metrics to track?

 

Employee Engagement Metrics

These metrics can help to give you an excellent idea of how engaged your employees are, and how much they value being a part of your organisation.

This is crucial information that can help you in decisions when it comes to promotions, firing, training, role changes and more.

Let’s take a look:

 

Employee Satisfaction

Find out what your Employee Net Promoter Score (NPS) is and monitor it regularly.

Many employers have now adopted measuring NPS internally to gauge employee satisfaction levels. Ask your employees how likely they are to recommend your company to a friend. 

Take this one step further and ask employees what you could do increase their score. Include these as part of regular pulse surveys.

 

Absenteeism

The higher your absenteeism rates the higher the disengagement in your business. Monitor this when you implement long term employee engagement programmes or make significant improvements. This is also a great metric to show return on investment.

 

Turnover

If your turnover is higher than your industry average take a close look. Conduct exit surveys to find out why people are leaving and observe if there are similarities in their tenures. Is there a specific point where most chose to leave? There may be something you can do at that particular stage to flip their engagement levels.

 

Productivity & Sales

It’s proven that engaged employees get more work done and this has a direct impact on your bottom line. With a highly engaged workforce you should see sales and productivity go up.

 

Customer Satisfaction

It makes sense that if your customers are happy then your employees likely are too. Monitor your customer net promoter score.

 

How To Improve Engagement

These focus areas below can improve boost engagement levels when as a company you invest in them and improve loyalty.

Let’s explore these:

 

Personal Development

Great employees want to be able to do their jobs well. They want a clear understanding of their value and contribution and the right tools to help them get better at their jobs and develop.

This is why it’s important to support your people with their personal development. Find out what’s important to them and help them focus on the things they are good at. 

The best employees work on self development outside of work too, including fitness, reading, learning experiences and more. They should also be looking to improve their career constantly, including picking up more responsibility and more money.

Learn more about supporting your staff in their self development goals here!

 

Job Satisfaction & Happiness

While these are two different things, they directly influence each other.

Do you know how happy your employees are with their pay? What about their working environment and working relationships?

Surveys are a great way to keep on top of this, but you should ask your staff this during casual conversation when possible too.

It’s as simple as this: If somebody is not completely satisfied with any or all of the above, can you truly expect them to do their best work? One things for sure, you can absolutely trust those who love their jobs to put the utmost effort in.

 

Alignment with Company Aims and Values

Employees that share your values are of course, going to be naturally more engaged. Encouraging this alignment can be as simple as discussing why you set up the business, and what your ultimate goal for it would be.

If you genuinely have a culture fit, you’ll find that employees become more passionate about this goal and throw themselves into helping you achieve it.

Do you have team members that aren’t aligned with your values and don’t care about your goals with the organisation? They quite possibly are never going to be aligned, and so the earlier you can be aware of this the better.

Learn more about how your workplace and workforce can be more aligned here.

 

Health and Well-Being

It goes without saying that employees who eat well, sleep well, keep fit, and generally attend to their well-being are going to be better workers, handle stress more efficiently, take less sick days, be more productive, and generally be a positive influence on other team members.

Unfortunately this goes the other way too. Staff members who don’t look after themselves, drink a lot, eat a lot of fast food, and constantly seem to be catching up on sleep are more likely to waste time at work simply trying to be more alert, and that’s without going into the additional absences.

Incorporating this into your company benefits, for example offering discounted or free gym memberships or even building a fitness room into your offices, can help with self development as well as health and well being. Introduce stress reducing activities such as yoga or even a workplace choir! 

Learn more about how to slash sickness with a workplace choir.

In the same way, analysing the health routines of your employees can tell you who really cares about self improvement and turning up to work the best version of themselves, and who prioritises other things.

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Tuesday 12th November 2019
9am-1pm
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