What engagement metrics measure
Employee engagement metrics are a Human Resources concept where the aim is to measure an employee’s emotional attachment to the company. They measure how engaged a company’s employees are, and are indicative of their level of dedication and commitment to an organization.
How to measure employee engagement
The paper “Psychological Conditions of Personal Engagement and Disengagement” by the psychologist William Kahn says there are three principal dimensions of employee engagement: physical, cognitive, and emotional.
Physical engagement describes how much an employee is willing to invest, mentally and physically, in their job — how much personal attention they put forward for the organization. Cognitive engagement indicates a higher degree of engagement: to engage, the employee should be well aware of the employer’s goals and the organization’s strategies, and put forward the desired work. Emotional engagement is the extent of an employee’s emotional relationship with the organization — to what degree they are engaged with its mission and values. In a nutshell, it’s the sense of belonging and confidence the employee has in the company and among its members to put forward their best performance.
Top ways to measure HR employee engagement
The metrics below are the ones HR teams most commonly track to understand engagement.
Employee resilience
Resilience is the ability to bounce back under stress. An employee’s resilience corresponds to how likely they are to stay or last in a company — employees with long-term goals tend to show more resilience. Like many other metrics, resilience is measured through tracking polls and surveys. To gauge it, you can run surveys centred on the employee’s interests, their commitment to taking leadership roles, how much their personality aligns with the work rhythm of the organization, and the extent to which they attain work-life balance.
Employee NPS
eNPS, or Employee Net Promoter Score, helps measure the level of loyalty and engagement an employee puts forward. It is based on one important question: how likely are you to recommend your employer to others as a place of work? It is answered on a scale of 0–10, where 9–10 are promoters, 7–8 are passives, and 0–6 are detractors. Promoters intend to stay because of their positive experiences, and their energy should be harnessed for the company’s growth; passives might stay longer if their issues are addressed; detractors are planning to leave or are the discontented bunch. eNPS is the percentage of promoters minus the percentage of detractors. It is subjective and varies by industry, but as a rough benchmark, an eNPS above 30 is considered good.
Absenteeism
Absenteeism is a regular pattern of taking spontaneous or unapproved leave without a proper formal heads-up, disrupting the work pattern of the organization. This does not refer to genuine personal emergencies but to a habit of spontaneous, unapproved leave. Anything that disrupts the organization’s pattern of working and balance is considered a red flag. The percentage of absenteeism is the number of unapproved absences over the total time period, multiplied by 100. It is entirely subjective and cannot be confined to fixed right/wrong percentages; tracking it works to improve the company’s efficiency by highlighting where to improve.
Employee turnover rate
Employee turnover rate (ETR) refers to the number of people leaving the company in a definite span of time, including both voluntary and forced departures. Keeping track of ETR is necessary since it is a direct indication of the company’s health — paradoxically, it can indicate both growth and downfall, and a very low ETR isn’t always preferable. The percentage ETR is the number of employees who left over the average number of employees, multiplied by 100. There is no universal alarming rate, but as a rough idea, 10–30 is often considered suitable for a company’s wellbeing.
Relationships in the workplace
Positive engagement indicates that your employees share healthy relationships with peers and management, with effective communication, collaboration, and synchronization as they work toward company goals. To find out if your employees enjoy fruitful professional relationships, conduct surveys with questions such as: Do you feel comfortable sharing problems with management? Do you feel your company culture promotes healthy relationships? On a scale from 1 to 5, how effective is management in responding to the queries you bring to them?
Workplace wellbeing
Many companies prioritise employee wellbeing to forge a personal connection with their bottom line. Beyond promoting healthy professional relationships, it is vital to ensure employees’ wellbeing in and outside the workplace — for example, through wellness programs or fitness-focused seminars. Considering how common a sedentary lifestyle is in the present-day work environment, companies should go above and beyond to ensure a fit and active workforce, whether through wellness gifts, marathons, or other fitness drives. Useful survey questions include: Do you feel you can appropriately attend to your health and wellness at the company? Are you able to maintain a healthy work-life balance? Would you participate in fitness activities if the company organized them?
Recognition
Recognition is what keeps people thriving — much like a good paycheck, being recognized for the work you put in keeps people going. Being able to see the impact of your work, and how it fuels the success of the organization, is itself a drive for the employee. Workplace recognition is one of the most critical metrics: without proper recognition, the quality of work tends to go downhill, since it gives the impression that the work doesn’t make a difference. Recognition such as Employee of the Month or rewards for accomplishing milestones gives credit to employees.
Autonomy
Autonomy over one’s work is a psychological way of improving employee performance, since it gives complete control of the project to the employee, which in turn provides a sense of responsibility, resulting in high performance and improved results. Engagement metrics like this help analyze the factors standing in the way of the organization’s growth and progress, so they can be addressed at the root.
Compensation and perks
Compensation is undeniably one of the critical factors that tie employees to a job, alongside the quality of work, work-life balance, and company culture. There should be clarity regarding compensation packages at different levels, and employees should know they will be rewarded with salary hikes and promotions if they give their best. In addition, organizations can motivate employees with lucrative perks and benefits — gym memberships, corporate discounts, health plans, and the like. Keeping tabs on your employees’ satisfaction levels goes a long way in gauging their commitment to the company; implement employee engagement strategies and monitor the metrics above to ensure your efforts bear fruit.