How to Measure Employee Engagement

Dec 30, 2022 · 8 mins read ·

Employee Engagement
hands

When evaluating if your company is meeting its goals you'll circle back on one question: how engaged are your employees?

Employee engagement is crucial. 

After all your employees' involvement plays in productivity and revenue growth. You can gauge any changes or reactions to the various programs you implement using the baseline data that measuring employee engagement provides.

It is impossible to overlook the ROI of employee engagement for companies making investments in a highly engaged workforce.

However merely wanting to increase employee happiness and engagement does not equate to actually knowing how to do it. Can the intangible concept of "happiness" even be quantified? Fortunately it can!

Companies may measure employee engagement levels and receive insights about where to take action by using the correct measures. 

This translates to a workplace where people are happier and more fulfilled with higher employee retention rates a better working environment and better performance.

What is employee engagement?

But first what is employee engagement?

The amount of effort employees put forth to achieve organizational objectives and results is the standard definition of employee engagement. However it involves more than just working hard. Being emotionally committed to the success of the organization is also essential.

Employees who are engaged care about their work and the organization they work for. Plus it's about more than just a wage. Employees who are actively involved support the company's mission by contributing to its accomplishments.

Engagement is defined as being physical cognitive and emotional by William Kahn in his study that the Academy of Management published. 

All these elements help maintain a healthy balance in how actively engaged individuals are at work. So let's examine the three ways that workers interact with their jobs.

Physically engaged

Physically engaged individuals work with enthusiasm and commitment. This subsequently impacts their output and the company's profitability.

Cognitively engaged

Employees who are cognitively engaged take the time to comprehend the company's goals and relate them to how their job affects the corporation. As a result beyond their own tasks they are more aware of the corporate objectives.

Emotionally engaged

Beyond just doing their jobs employees' emotional engagement affects their relationships with their employers and coworkers. Emotionally invested employees believe those around them are thinking about them especially during trying times.

Why do you need employee engagement metrics?

Key performance indicators (KPIs) provide you the power to define objectives create precise targets and achieve them.

However a single KPI is insufficient to determine employee engagement. Instead you'll need to use a variety of employee engagement measures to get the whole picture of your team's working environment.

Why should you spend your precious time acquiring information on employee happiness and engagement? 

Only 20% of employees according to Gallup's 2021 State of the Global Workplace study feel engaged at work.

This indicates that 80% of employees feel cut off from their regular tasks which might result in the following:

  • Employee productivity is low
  • High absence rate
  • Higher rates of turnover
  • Decreased effectiveness whether as an individual or team

You must first recognize an issue to remedy it. Starting with measuring employee engagement levels is an excellent idea. 

You can better plan the future of your business after you understand how your employees feel about things like feedback job possibilities and benefits.

How can you measure employee engagement?

You can build a motivated and passionate team by assessing your existing scenario utilizing employee engagement measures. 

In addition these indicators will guide you to the causes of poor engagement and give you an overview of the employee experience.

Employee Net Promoter Score (eNPS)

How many engaged employees work for your company can be easily determined using the employee Net Promoter Score (eNPS). 

Business executives have transformed net promoter scores used initially to gauge customer loyalty into a KPI to determine staff engagement.

A straightforward question—scaled from 1 to 10—must be asked: "How likely are you to recommend our organization as a place to work?"

A fantastic technique to gauge ambassadorship in your organization is to calculate your eNPS. 

Your promoters serve as ardent brand ambassadors for your business assisting you in luring in and retaining talent. 

Neutral employees are the first in line to become the next promoters if you respond to their feedback even if they are unlikely to say anything positive or negative about the business.

Employee Satisfaction Index (ESI)

The employee satisfaction index (ESI) calculates the level of job satisfaction among your staff members. Employee engagement focuses on dedication and work production whereas employee satisfaction emphasizes employee fulfillment and happiness.

You must ask the following questions to determine your ESI score:

  • How happy are you with your employment on a scale of 1 to 10?
  • How well does your job satisfy your expectations on a scale of 1 to 10?
  • How similar is your place of employment to your ideal job on a scale of 1 to 10?

A score between 1 and 100 is the outcome; a higher score indicates greater employee satisfaction.

Attrition rate

You may monitor employee happiness contentment and engagement by using the turnover rate as a KPI. 

High employee turnover rates can result from low employee engagement and today's competitive labor market makes it increasingly harder to retain talent.

Employer turnover can be calculated using the following formula:

Employee turnover rate = (total number of quitters divided by the total number of employees at the start of the period) x 100

This statistic can be focused on particular teams or departments to assess employee happiness and engagement across various organizational divisions.

Employee surveys

Managers can learn more about the contentment and well-being of their workforce through employee satisfaction surveys. Leaders should ideally use the results of employee surveys to make significant changes based on employee input.

Surveys can collect information about participation and satisfaction but the type of survey you choose will depend on your goals.

Successful hires

How well your organization retains new workers after their probationary period is a solid indicator of employee engagement and satisfaction.

Your human resource management staff may need to assess your company culture hiring process and other onboarding procedures if you discover that new hires quit after a few months.

To summarize

Your employees will be happier in their jobs if you use employee engagement KPIs to make significant changes. A motivated workforce more likely to stick around and go above and beyond to accomplish company objectives is one with happy people.

Want to make your employees an even more jolly bunch? Streamline your human resources operations and save time! 

At Hezum we have powerful and intuitive solutions to ensure your team members get easy access to the onboarding process time management requests and HR documents. Want to learn more? Visit our website today.

Tricia Tan

Tricia Tan