6 Key Metrics You Can Use to Measure Employee Engagement
Employee engagement is a hot topic in HR circles, and for good reason.
With recent studies drawing the link between employee engagement and business performance results, the importance of having an engagement strategy in place is becoming more and more apparent.
Because engagement is defined as a feeling rather than an easily quantifiable metric, many HR professionals are faced with the challenge that comes with trying to measure the success of their engagement strategy. We have put together a list of 3 methods that you can use to help measure the success of your workplace engagement strategy.
1. Absenteeism and Employee Turnover Rate
Unsurprisingly, the most engaged employees show up and put in the effort. Despite being a lag indicator, absenteeism and turnover rates provide useful insight into the employee experience in your workplace. The latest market research suggests you should aim for an annual employee turnover rate of 10% or less, with a score lower than this indicating there are specific departments or managers that need attention to improve the employee experience. Engaged employees show up, and are present in every sense of the word.
2. Employee Net Promoter Score (NPS)
Initially used to measure customer satisfaction, net promoter scores have been adopted internally by employers to gather the same information from their employees by asking this simple question: “How likely is it that you would recommend working at our company to a friend or colleague?”
Generally, the question is answered on a scale from 0 to 10, with anyone answering 0 to 6 considered a detractor, 7 and 8 considered passive, and 9 to 10 respondents considered promoters.
Calculating your NPS is as simple as subtracting your percentage of detractors from your promoters.
A negative score indicates that more employees said they would not recommend someone to work at your company, whereas a positive score indicates high levels of engagement, with more people recommending your company as an employer of choice.
3. Employee Engagement Surveys
Unlike absenteeism rates, employee surveys are a leading indicator, and provide insight into self reported engagement levels. The cadence of the surveys can vary, but it is generally a good idea to perform them on a frequent basis. The use of surveys enable HR teams to ask tailored questions about the employee experience, such as:
- How valued do you feel as an employee?
- Are you proud to be a member of your team?
By performing surveys frequently, you are empowered to benchmark your results against other companies in your industry. Furthermore, you can compare your progress to historical data and compare business units, both important tools in identifying the successes and threats in your engagement strategy.
Encouraging employee engagement can feel more like an art than a science – but measuring the results does not have to be hard. These simple metrics can help ensure you are on the right track to achieving a highly engaged workplace.
4. Acceptance Offer Rates
The acceptance offer rate describes how many job offers are sent out versus how many are accepted by recipients. Employee engagement is the employees valued emotional commitment to an organisation.
The time to acceptance of an employment offer can often say something about the employee’s ability to commit, but can also say more about the emotional connection to the company. If your work has a low offer acceptance rate – why? How are you creating excitement for prospective employees? Are they getting a ‘better offer’ elsewhere? If so, what’s the driver. Often it’s not necessarily just remuneration that’s the deciding factor.
These preliminary introspective questions are important to ask. Understanding a candidates view of the workplace culture is a crucial element to sustained engagement.
5. Engagement of Onboarding Journeys
If you’re using a digital employee onboarding platform such as HROnboard – you’re able to view key engagement metrics about your new hires. Through HROnboard, it makes it easy to see when your employees are completing key tasks and reading content leading up to day one. These engagement indicators can be an early warning system – just a prompt to reach out to new starters that are not doing so well or haven’t started their journey.
Similar to the offer acceptance rate, onboarding metrics can be useful in forecasting the new hires involvement and overall employee experience.
6. Personal Development
The employee’s willingness to grow is one of the most important metric to track overtime. Employees should want to grow – in their role, extending their title, financially, more responsibility and beyond. Frequent feedback conversations with managers should be implemented as it forms a strong foundation for successful performance management.
One of the key objectives of any manager is to ensure their team is growing and fulfilling their goals within the organisation. These regular meetings are a great way of keeping in touch via 360-degree feedback; these can be kept as notes for future observations.
Encouraging employee engagement can feel more like an art than a science – but measuring the results does not have to be hard. These simple qualitative and quantitative measures can help ensure you are on the right track to achieving a highly engaged workplace.