Measuring Employee Engagement
Measuring Employee Engagement
Measuring your staff engagement levels is crucial. If you don’t know where your employees currently stand and take a baseline measure, how can you manage and improve these levels?
Employee Engagement Surveys are designed to measure and assess how motivated and engaged your employees are to perform their best at work each day. From these surveys, you can gain insight into employees’ thoughts and attitudes toward their work and the overall environment. You can also locate any areas that may be holding your employees back from performing at their best.
By taking action over time to improve your key engagement drivers, will create a more effective and efficient workforce and a more profitable organisation.
How to Measure Employee Engagement
Knowing how to measure employee engagement is the first step to improving it. But that’s more easily said than done. In this post, we break down the best ways to track and measure staff engagement for a more motivated and inspired workforce.
Engaged employees are more driven and excited about their work. They give more and get more from their roles. But getting employees to feel engaged is no small feat. It requires great leadership communication, recognition for hard work, and the right resources to support staff in their roles.
Today more than ever, employee engagement is vital to keeping staff connected and inspired in a remote workplace. But your engagement strategy has to be grounded in employee feedback and data. As such, measuring and tracking employee communications and engagement is the cornerstone of a successful business.
Importance of Measuring Employee Engagement
Employee engagement is the level of commitment an employee feels toward the organization and its mission, values, vision, and goals.
When employees are engaged, it translates into benefits like:
- Higher employee retention and professional development
- Greater alignment between employees and company values
- Better productivity results and higher quality performance
- Higher customer reviews and better company reputation
With 51% of employees claiming they’re seeking new jobs or monitoring job openings, employers are under pressure to find new ways to increase engagement, motivation, and commitment.
By measuring employee engagement, you can develop specific strategies that optimize it within your organization.
03 Tools to Measure Employee Engagement
Employee engagement measurement tools help you define and quantify employee engagement. They also help you evaluate and track it so you can strategically improve engagement.
Examples of employee engagement measurement tools include:
1. Engagement survey tools: Surveys are questionnaires that employees fill out and send back anonymously. You decide the types of questions to ask and how the answers are scored, such as on a scale or open-ended.
2. Reward and recognition programs: Employee reward and recognition programs are a great way to boost engagement, but they also provide a method of measuring it. The level of participation you see in reward and recognition programs can be a good indicator of employee engagement.
3. Performance management systems: Job performance systems help you measure and increase employee engagement. These tools provide insight into what drives performance and how it affects engagement. For example, they can help you determine how interventions like performance coaching or leadership training affect engagement outcomes.
2. Employee retention rate
Similar to turnover rate, employee retention looks at people who stay at your organization, which indicates their engagement. To calculate employee retention, use the formula below:
3. Absenteeism
High employee absenteeism might indicate issues with employee engagement. Measuring the absenteeism rate helps you keep track of this. To calculate the employee absenteeism rate, use the below formula:
4. Employee Net Promoter Score (eNPS)
Employee Net Promoter Score (Enps) is one of the most well-known HR metrics to measure employee engagement. Organizations often measure it through an employee engagement survey.
This metric is measured by the question “On a scale from 1-10, how likely are you to recommend this organization as a place to work?” or “Based on your experience, how likely are you to recommend our organization to a friend or colleague?” Based on the responses, you can break it down into detractors, passives, and promoters.
To calculate your eNPS, the formula is:
5. Employee satisfaction
While there is a clear distinction between employee satisfaction and engagement, they are intertwined, and both can be measured through similar metrics.
Employee satisfaction takes into consideration external factors, such as working conditions, benefits and salary.
On the other hand, employee engagement looks at things such as how an employee is intrinsically motivated and whether they buy into the company vision.
6. Employee performance
Again, highly engaged employees are likely to perform well in their jobs, so your employee performance metrics are also relevant to understanding employee engagement. We can generally divide employee performance metrics into four categories:
- Work quality metrics – Such as number of errors, net promoter score, or 360-degree feedback.
- Work quantity metrics – Such as number of sales, number of units produced, handling time
- Work efficiency metrics – Balancing the qualitative and quantitative employee performance metrics
- Organizational performance metrics – Revenue per employee, human capital ROI
7. Glassdoor.com rating
Employee engagement also has a significant impact on employer branding. Namely, what people say about you online tells a lot about how they feel about working for you. Before an employee is likely to interview with an organization, the first thing they are likely to do is to ‘Google’ them. One of the most popular employer review sites that always appears is Glassdoor, which has established itself as a leading authority on reviewing workplace satisfaction and making that information publicly available.
- 0.00 – 1.50 Employees are “Very Dissatisfied”
- 1.51 – 2.50 Employees are “Dissatisfied”
- 2.51 – 3.50 Employees say it’s “Okay”
- 3.51 – 4.00 Employees are “Satisfied”
- 4.01 – 5.00 Employees are “Very Satisfied”
8. ROI on employee engagement
It’s also important to understand the ROI of high employee engagement. After all, more engaged employees are more productive, and therefore have a higher ROI.
9. Customer happiness
A low employee engagement rate often causes low customer satisfaction, and the other way around. Put yourself in any scenario when you’re dealing with client or customer services, and your satisfaction level when the person you’re dealing with is calm, friendly, and goes that extra mile.
10. UWES & Gallup Scales
There are also known employee engagement scales that you can use. The two most well-known and tested are the UWES or GALLUP scales. Both are very well tested. For both scales, higher scores are related to superior business outcomes.
(Vulpen, 2022)
Hi Ridma. I would like to know what your opinion is on biasness when measuring employee engagement? Thank you.
ReplyDeleteHi Kasun , Hope mentioned details are answered your question.
DeleteMeasuring employee engagement can be a useful tool for organizations to understand the level of commitment, satisfaction, and motivation of their employees. However, there are some potential biases that can impact the accuracy and effectiveness of these measurements. Here are a few examples:
Social desirability bias: Employees may be more likely to provide positive responses on engagement surveys in order to present themselves in a favorable light. This can result in inflated scores that do not accurately reflect their true level of engagement.
Response bias: Some employees may not respond to engagement surveys, leading to a biased sample. Those who choose to participate may be more engaged or have stronger opinions, leading to an overrepresentation of certain perspectives.
Question bias: The wording or framing of survey questions can influence how employees respond. For example, leading questions or questions that are too general may not provide useful or accurate information.
Cultural bias: Engagement surveys may be culturally biased in ways that don't account for the unique values and perspectives of certain groups. This can lead to misunderstandings and misinterpretations of the data.
Timing bias: The timing of engagement surveys can impact the results. For example, conducting a survey during a particularly busy or stressful period may result in lower engagement scores than if the survey were conducted during a quieter period.
It's important for organizations to be aware of these potential biases and take steps to minimize them in order to obtain
How do you measure employee's satisfaction?
ReplyDeleteSome things are very easy to measure, such as how many miles you run every day or how many glasses of water you eat every day. Since motivation, happiness, satisfaction, and commitment are all challenging to quantify, measuring employee engagement is not an easy one.
Employee engagement is highly important for business in different ways, and measuring the engagement is somewhat critical and challenging, Here leadership style, and communication play a critical role in employee engagement. high employee retention and high productivity can be identified as key benefits. Here author attempts to highlight how employee engagement impact on employee performance and customers' side.
ReplyDeleteThis article demonstrate better evidence . Employment engagement matters to achieving company success and developing employee skills and talents toward future goals. Happy employees equal a happy and prominent company. Net promoter scores began as a way to measure customer loyalty, but business leaders have adapted them into a KPI to calculate employee engagement. All you need to do is to ask one key question (on a scale of 1 to 10): “How likely are you to recommend our company as a place to work?” We have identified four key guidelines for keeping your workforce engaged: contribution, connection, communication, and confidence. Within his work, Kahn identified three principle dimensions of employee engagement - physical, cognitive and emotional.
ReplyDeleteThis article is useful to anyone in order to have a quantified idea regarding employee engagement. Customer happiness is very much important when it comes to business. Several scales are there to measure customer happiness as well.
ReplyDeleteNet Promoter Score (NPS): NPS is a widely used metric for measuring customer satisfaction and loyalty. It asks customers how likely they are to recommend the company to others on a scale of 0-10, and then calculates a score based on the percentage of "promoters" (customers who gave a score of 9 or 10) minus the percentage of "detractors" (customers who gave a score of 0-6). The higher the NPS score, the happier the customers are (Reichheld, 2003).
Customer Satisfaction Score (CSAT): CSAT measures the overall satisfaction of customers with a specific product or service, by asking them to rate their satisfaction on a scale of 1-5 or 1-10. The higher the score, the happier the customers are (Berg, 2019).
Customer Effort Score (CES): CES measures the ease with which customers are able to complete a specific task or interact with the organization. It asks customers to rate the level of effort required to complete a task on a scale of 1-5 or 1-10. The lower the score, the happier the customers are (Dixon, Freeman, & Toman, 2010).
In addition to these metrics, organizations can also use customer feedback surveys, online reviews, and social media monitoring to gather feedback on customer happiness and satisfaction.
Overall, measuring customer happiness is critical for organizations to understand how well they are meeting customer needs and expectations, and to identify areas for improvement. By using metrics such as NPS, CSAT, and CES, organizations can gain valuable insights into customer happiness, and take action to improve the customer experience.