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How to Measure Employee Engagement

One of the most important questions is how to measure employee engagement.

Employee engagement is a complex topic due to the numerous factors that influence it. One of the most important questions is how to measure employee engagement.

Employee engagement is more difficult to measure than other things because it is a combination of motivation, happiness, satisfaction, and commitment. A good employee engagement report will contain a few  key metrics to help you learn about your employees and make better decisions.

What is Employee Engagement and Why Measure It?

We provided a working definition of employee engagement in a previous post and stated that it is only possible “…with strong senior management leadership and effective communication at all levels of the organization.”

We would offer two critical reasons for measuring employee engagement:

(1) Measuring employee engagement provides a snapshot of your organization’s health. In other words, if you don’t have strong leadership and effective communication across the board, you’ll have more disengaged employees than engaged.

(2) You can gauge the relationship between your employees’ mindset and your proactive efforts for a healthy organization by measuring this behavior.

There are a number of employee engagement metrics available to organizations, but the following provide a holistic view of both employee feedback and observable behavior. These recommended metrics are:

Absenteeism and Tardiness

Absenteeism is defined as a habitual pattern of missing work by an employee. Tardiness is defined as an employee’s habit of arriving late for work. Regularly measuring and reviewing absenteeism and tardiness is possible. Absenteeism and tardiness at work have a negative impact on productivity, increased costs, and morale.

Turnover

The rate at which employees leave their jobs voluntarily is referred to as the voluntary employee turnover rate. In contrast, the involuntary turnover rate is the rate at which employees are fired by their employer. 

Voluntary turnover is generally regarded as more damaging to a company than involuntary turnover, because it is frequently difficult to prevent an employee from leaving once they have made the decision to do so. Furthermore, voluntary turnover can indicate that the company has underlying issues, such as poor working conditions or low pay.

Company Review Sites

When attempting to assess employee engagement at a company, it is critical to consider the reviews left by current and former employees. You can find these on sites such as Glassdoor and Indeed. These reviews can provide valuable insight into employee engagement that a company website may not provide.

If your company has low ratings on these sites, it is critical to read the reviews and look for trends that can be addressed internally. Furthermore, each review should be addressed as if it were a face-to-face meeting with an employee. Finally, avoid spamming the site with phony positive reviews, as this will be obvious to job seekers.

The Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a management tool used to assess a company’s product or service’s level of customer satisfaction and loyalty. It is based on a straightforward question: “How likely are you to recommend our company/product/service to a friend or colleague?” The answer is scaled from 0 to 10, with 10 being the most likely.

Customer satisfaction and loyalty are measured using the Net Promoter Score. It can be used to compare a company’s performance to that of its competitors or to track changes in customer satisfaction over time.

The Net Promoter Score can also be used to identify areas for a company’s improvement. For example, if a company has a high NPS but a low score for “likelihood to recommend to a friend,” this could indicate that the company’s customer service needs to be improved.

There are numerous advantages to using the Net Promoter Score. Customer satisfaction, loyalty, and advocacy can all be measured using the score. It can also be used to compare a company’s performance to that of its competitors or to track changes in customer satisfaction over time. Furthermore, the Net Promoter Score can be used to identify areas for a company’s improvement.

Hopefully, the information provided above has helped you better understand how to measure employee engagement. Please let us know if we missed anything in the comments.

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