Measuring employee engagement is a tricky subject. If you overdo it, you can come off as overbearing and risk losing the motivation and trust of your employees. But getting your employees involved and invested is critical to your company’s success.
Why Is It Critical to Measure Employee Engagement?
First, as a leader you should truly want to create an environment that makes your workforce happy. Second, employee engagement is directly tied to other business outcomes such as:
- Stronger customer service and higher customer loyalty
- Maximum productivity
- Greater retention
- Higher profits
Dr. Jim Harter, Gallup’s Chief Scientist, Workplace, has been tracking 1.8 million workers in 82,000 teams from 230 companies. It’s safe to say their results reflect the broader workforce.
What Dr. Harter and the Gallup team recently discovered is that employee engagement numbers are the highest they’ve been in the two decades Gallup’s been tracking them.
But, business leaders need to know how to measure engagement for themselves.
Pro tip: Determine what objectives you want to achieve when determining the best KPIs to measure in your company.
How to Measure Employee Engagement
There are various internal elements that can help you measure employee engagement. First, identify the key performance indicators that are windows to your workforce data. Start by getting a baseline measurement of each KPI. Establishing these baselines is much easier if you have a digital workplace. Then, track these employee engagement metrics over regular intervals.
Here are the top five key employee engagement KPIs you should measure to gauge the health of your workforce.
1. Job Performance and Productivity
How much are employees accomplishing on each shift? Employees that meet their deadlines, always show up to work, and work well with their co-workers are not only engaged employees, but also great assets who are delivering quality products or services to customers. When employees are engaged, their quality of work improves.
This KPI can be measured in ways like:
- Performing team assessments
- Examining product output or assignment completion
- Measuring the use of company resources by employees.
It’s important to share results with employees and remember to give positive reinforcement and tell employees what is working as well as what isn’t.
2. The Mobile Adoption Rate of Your Employee App
71% of the frontline workforce report that communication tools make them more productive. So a great KPI to track is the adoption rate of your digital workplace through built-in analytic tracking features.
It’s a straightforward method for recording who is actively engaged on your communication platform through features such as confirmation campaigns and read receipts.
To boost your buy-in numbers, use an employee engagement app that offers the following:
- An easy interface
- Mobile accessibility
- Training and onboarding
- A dedicated customer success representative
- An analytics dashboard
Beekeeper offers features focused on improving engagement among all types of workforces.
At MOD Pizza, a nationwide chain with hundreds of new locations opening every year, keeping 6,000-plus employees happy and engaged in their work might seem like a big feat. But the Beekeeper app was able to support and sustain a thriving culture built on two-way communication. Giving employees a voice through the company’s bottom-up communication strategy has delivered a high adoption rate and an engaged workforce.
3. Absenteeism and Turnover Rates
Of all the employee satisfaction KPI examples, there’s no disputing attendance records and turnover rates. These hard numbers can reveal just how motivated your workers are to simply show up.
Often, when absenteeism is high, retention is low. Both are KPIs worth tracking when measuring employee engagement. Here is how to calculate each KPI.
Calculating Absenteeism: Divide the total number of unscheduled absences for a set period of time by the total number of work days for that period. Multiply that by 100 to get absenteeism percentage.
Calculating Turnover: Divide the number of employees who left voluntarily during a set period of time by the total number of employees during that time. Multiply by 100 to get turnover percentage.
When 1 Hotels, a sustainable luxury brand with properties in New York, China, Miami, and Los Angeles, wanted to connect their company culture and strengthen their workforce, they adopted a digital workplace to streamline communication.
1 Hotels was able to track workforce analytics and saw their turnover rates drop with the adoption of their digital workplace.
4. Overall Employee Satisfaction
Want to know if your workforce is engaged? Simply ask them. Employee satisfaction might not be something you can measure with a number. But you can definitely get a good grasp of how your workforce is feeling.
Surveys are an easy, direct way to find out which employees and teams are engaged and what areas need to be improved. They can help guide your employee experience strategies to increase overall employee happiness.
To accurately measure engagement through a survey, you need a high response rate. Try strategies like gamification and use multiple choice questions to make sure employees complete the survey to give you the most accurate numbers.
Employee feedback can be automated, pulse surveys, distributed through a mobile app. With an analytics dashboard, leaders can track answers over time to accurately measure this KPI.
5. Employee NPS
Employee Net Promoter Score, or ENPS, is another solid KPI that easily tracks internal engagement. Once a marketing tool for consumer research, NPS is now often used by business leaders to get a general feel for the employee experience with just one question.
NPS can give you a simplified and straightforward number to rate the experience and environment your company is creating for your workforce.
Examples of NPS questions include:
- On a scale of 1 to 10, how would you rate your experience at our company?
- How likely are you to recommend this company as an employer?
- How would you rate your communication with your manager?
- Do you feel valued as an employee?
You can follow up a short question with an open-ended one asking for more details. For example, “how can we improve your experience?”
For the most thorough measurement, use these five KPIs in unison to build a complete picture of employee engagement. It will deliver the information you need to design the best communication and engagement strategy for your workforce.