Knowing how to measure employee engagement isn’t an easy thing to do. There isn’t one, single question you can ask, or survey you can administer to measure it.
On top of that, there’s a common misconception that employee engagement is the same thing as job satisfaction. While the two are related, it goes deeper than that. Employee engagement actually comes down to how genuinely invested someone is in their job, and everything that goes along with that investment.
Engaged employees aren’t just good at their jobs. They bring a level of energy, creativity, and drive to work every day that everyone needs. They’re the ones you can count on to find innovative solutions, while creating a positive workplace.
By measuring engagement the right way, you get a clear path forward. It all comes down to collecting useful, meaningful data. You can transform that data into actionable insights, and those insights evolve into a stronger workplace culture ready for growth.
Keeping your employees engaged can’t be a one-time event. It has to remain an ongoing journey you pay attention to. Being genuinely committed to your staff is what will truly resonate with them. When done right, you’ll cultivate a highly engaged workforce.
What is employee engagement?
Employee engagement isn’t just how happy someone feels at work. It’s about how invested they are in the success of the company, and everyone in it. Being engaged at work means there is a genuine connection to the business, colleagues, and collective goals.
A highly engaged employee doesn’t need someone constantly checking in to keep them motivated to do their job. They work with integrity and are proud to be a member of their team.
But when engagement is low, the ripple effect is hard to miss. Productivity drops, turnover jumps, and the company culture is lost.
Why measuring employee engagement matters
When kids discover a new interest, whether a subject, sport, or activity, they go all in. An inspiring teacher or coach often leads them. Their excitement to learn and grow is clear because they’re highly engaged.
The same thing can happen at work.
Strong leadership and opportunities to grow can create excitement in your staff.
Engaged employees are more inspired to do excellent work. They tell others about it, and act as ambassadors for the organization.
Why does measuring engagement matter?
It brings some serious benefits:
- Increased profitability
Companies with high employee engagement are 21% more profitable. - Money savings
Disengaged employees cause about $1.9 trillion in lost productivity nationwide. - Improved customer satisfaction
92% of executives say that high engagement results in happier customers.
The link between employee engagement and retention
Once you find a qualified person to fill a role, you need to retain them.
How? By engaging them in the business.
Why? Because employee engagement has a direct impact on retention rates.
When someone has a strong connection to their work, they’re more committed to their role. The result is lower turnover rates and a stable workforce.
In contrast, disengaged employees who lack connection are more likely to leave when new opportunities pop up. A disengaged workforce can lead to increased turnover.
When you have high retention rates, you get rid of the high costs that go along with hiring and training new staff.
With onboarding a new hire costing anywhere from $1,000-$5,000 or more, retaining your staff is a must.
Beyond the financial cost, it takes a lot of time and resources to bring a new hire up to speed.
Measuring and improving employee engagement is a strategic way to boost your employee retention rate. Focus on building a strong and genuine connection with your staff. It’s one of the best things you can do for the health of your business.
14 ways to measure employee engagement
Now that you know why measuring employee engagement matters, you might be wondering, how do companies measure employee engagement effectively?
Here are three ways to measure employee engagement:
- Key performance indicators (KPIs)
- Qualitative methods
- Employee development
Quantitative metrics for measuring:
KPIs provide clear data when you’re measuring employee engagement. These quantifiable metrics help assess and track engagement levels over time. Let’s look at some common ones:
1. Annual engagement survey
These once-yearly surveys provide valuable big-picture data. They’re comprehensive, and all employees participate. A macro-view of engagement across the organization establishes a benchmark every year.
By comparing results year over year, you can identify trends, improvements, and areas of opportunity.
2. Pulse survey
Pulse surveys can give you real-time insights into how your staff feels. To be effective, they have to be quick, given regularly, and adjusted to needs.
Unlike annual surveys, pulse surveys give a snapshot of engagement at specific times. You can make quick adjustments with the results.
3. Employee Net Promoter Score (eNPS)
An eNPS measures how likely your staff is to recommend your company as a place to work. It’s a quick way to measure employee satisfaction and loyalty.
A high eNPS indicates that your employees are likely engaged at work and can act as advocates for your company.
4. Onboarding surveys
Don’t neglect the engagement of your new hires. Onboarding surveys provide crucial feedback from those new to your organization. A strong onboarding experience sets the tone for future engagement. If your onboarding surveys show you’re missing the mark, it’s important to make immediate adjustments.
5. Internal email engagement
Measuring how employees open, read, click on, and respond to work emails provides interesting insights. These metrics can help you decide how to refine communication strategies.
Low engagement with internal communications may signal a disconnect or a need for more engaging content or methods.
6. Absenteeism
Measuring unplanned absences helps determine if your staff is engaged or not. While an absenteeism rate of 1.5% is typical, anything above it signals possible disengagement.
High absenteeism can indicate things like burnout or dissatisfaction.
Deliver employee engagement surveys straight to your team’s smartphones
Qualitative methods for measuring employee engagement
The contextual information that qualitative methods give is the perfect complement to KPIs. Together, they provide a more comprehensive understanding of employee engagement.
1. One-on-one meetings
Direct conversations with your staff can bring up important insights. Follow-up questions can be asked to understand their engagement levels, thoughts, and concerns.
2. Focus groups
Small group discussions encourage an open dialogue. Discuss group concerns that come up on the spot.
3. Exit and stay interviews
Conducting an interview when someone leaves the company can reveal important insights into your business. Just as important are stay interviews. Find out why your staff is staying and how you can continue to support them.
4. Knowledge sharing
Tribal knowledge, information passed on between employees informally, can indicate an engaged staff. Observe how readily employees share expertise with colleagues. It reflects engagement and investment in their team’s success.
5. Employee development
Research has shown a strong link between employee development opportunities and levels of engagement. 80% of employees believe having learning and development opportunities would make them feel more engaged at work.
High participation in training indicates more engaged employees. When the engaged staff acquires a new skill, they can apply it quickly. Here’s what that might look like:
6. On-the-job training programs
On-the-job training allows your staff to be active participants in their learning. Those who are engaged are more likely to apply the skills they gain.
7. Bite-sized learning
Microlearning offers quick learning opportunities for employees on the go. High participation in bite-sized learning often reflects an eager and engaged workforce.
8. Training reinforcement
Training reinforcement sustains long-term engagement. Regularly reinforcing skills helps your engaged staff member stay confident in their abilities.
The key to any good working relationship is open communication. Be sure to include feedback loops to continually gather employee feedback. One way to do this is through a post-training survey. Remember that gathering feedback is just the start. You have to act on it so your staff knows you care about them.
The dos and don’ts of measuring employee engagement
When measuring employee engagement, you need to keep it ongoing by using multiple methods. Here is a list of things to do and what to avoid.
Do
- Establish clear goals and benchmarks
- Use a combination of engagement measures
- Empower employees with chances to voice their opinions
- Be authentic in communicating engagement initiative
- Follow up on survey results with targeted ways to improve engagement
Don’t
- Have a one-size-fits-all approach
- Communicate sporadically about engagement efforts
- Rely only on annual surveys
- Ignore data or fail to take action on insights
- Give long, complex surveys that discourage participation
FAQs
What is a KPI for measuring engagement?
A key performance indicator (KPI) for measuring engagement provides targeted data. Some examples of numeric KPIs include: retention rate, absenteeism, and eNPS scores. Regular measurement and analysis over time can help improve employee engagement.
What is the most commonly used tool to measure employee engagement?
Employee engagement surveys are most commonly used to measure employee engagement. They provide a structured approach to gathering information.
How do you measure an employee engagement index?
To measure how engaged employees are, companies have to first choose the metrics they will use. These can include surveys, employee turnover rates, and focus groups. They then analyze the results to determine their engagement index.
What are the HR metrics for engagement?
HR metrics for engagement typically include:
- Employee satisfaction scores
- Employee Net Promoter Score (eNPS)
- Turnover rate
- Absenteeism rate
- Employee retention rate
These metrics help HR teams monitor and improve employee engagement.
Turn engagement insights into action
Now that you’ve learned how to measure employee engagement, the real work begins.
Always keep in mind that measuring engagement doesn’t only happen once. You should be regularly revisiting your strategies, making adjustments, and always keeping communication flowing.
To cultivate employees who are genuinely engaged, you have to remain proactive. Your business and your people deserve the very best.
Key takeaways
- Employee engagement directly impacts the success of your staff and organization
- Measuring engagement helps identify areas for improvement
- Use a combination of quantitative and qualitative measure to obtain a comprehensive view of engagement
- Continuously monitor and adjust your engagement strategies for long-term success
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