How to Effectively Measure Employee Engagement Metrics

Spike Team
By Spike Team, Updated on April 30, 2024, 6 min read

Let’s talk about something we all experience but might not always know how to put into words: work engagement. You know, that feeling when you’re totally into your job, feeling motivated and genuinely connected to what you’re doing. But if someone asked you to rate that feeling on a scale from 0 to 10, how would you even begin to quantify that?


Employee engagement isn’t just one emotion, number, or rating. It’s a mix of feelings, attitudes, and beliefs about your work. So, saying you’re “engaged about a 6 out of 10” just doesn’t cut it.


There is, however, a better way to understand how engaged your fabulous employees really are. Instead of asking for a single number, you can ask questions that give clues about engagement. Questions like: Do you feel connected to the company’s goals? Would you jump ship for a similar job elsewhere?


This guide will show you how to measure and understand employee engagement in a way that goes beyond just a simple rating.



What Is Employee Engagement?


Employee engagement is essentially how invested and excited your team is in their work. It’s about understanding whether your team members are genuinely passionate and involved in what they do or if they’re just going through the motions.


For instance, say you work for a data intelligence company currently working on a project with parquet data. An engaged employee might participate in brainstorming sessions to improve data processing techniques, or proactively seek out opportunities to learn new skills that can enhance their contributions to the company’s objectives.


Plus, they’re not shy about sharing what they know, always ready to lend a helping hand to colleagues. It’s all about that passion and drive to make our company shine, regardless of the context or its complexity.



Why Measuring Employee Engagement Is Important

Having a team of highly engaged employees brings numerous advantages to the table. Let’s discover some of the main ones.



Employee Turnover Reduction



Nearly 6 out of 10 employees are quietly considering leaving. But by keeping a close eye on your team’s engagement levels, you can catch those who might be feeling a bit “meh” about their work before they walk out the door. This means fewer farewell waves and less stress trying to fill vacant positions.


Let’s say you manage a call center and notice a subtle decline in enthusiasm from one of your top performers. Instead of ignoring it, you sit down for a heart-to-heart chat. Turns out, they’re feeling a bit stuck in their role.


By addressing their concerns, you reignite their passion for the job. Now, instead of browsing LinkedIn for new roles, they’re looking into contact center trends to help improve the company.



Money Savings

Employees who aren’t feeling engaged at work cost the world $8.8 trillion in lost productivity. However, by investing in employee engagement initiatives, companies can unlock the full potential of their workforce and mitigate these losses.


Moreover, HR statistics indicate that companies with highly engaged employees experience 21% higher profitability. Thus, focusing on employee engagement not only improves morale but also positively impacts the bottom line.



Less Workplace Stress



Almost half of employees (44%) are dealing with stress daily. By keeping tabs on engagement levels, you sprinkle some positivity where it’s needed most. Because a happy team means a healthier, more supportive work vibe for everyone.


Suppose you were leading a team of software engineers working on a new project called “what is a lakehouse architecture”. As the deadline approaches, tensions start to run high, and you notice signs of stress among your team members. By monitoring their engagement levels, you identify areas where they might be feeling overwhelmed. In response, you organize a team-building activity, giving everyone a chance to unwind and recharge.


Moreover, cybersecurity threats pose another layer of stress for employees. The constant fear of cyberattacks and data breaches not only affects productivity but also impacts mental well-being. Therefore, fostering a secure digital environment and providing adequate training on cybersecurity measures can alleviate some of these concerns, contributing to a more resilient and mentally healthy workforce.


Effective remote employee productivity management is now a crucial aspect of maintaining team efficiency and ensuring business success in the modern workplace. Ensuring that remote employees have the necessary tools and resources, establishing clear communication channels, and implementing strategies to maintain engagement and collaboration are essential aspects of managing remote teams efficiently.


Asynchronous communication plays a significant role in this. Allowing team members to collaborate flexibly across different time zones and schedules ensures continuous progress on projects.



Employee Engagement Metrics and How to Measure Them

Here are our top three employee engagement metrics and how you can measure them.



1. Employee Net Promoter Score (eNPS)

This metric is like a quick vibe check for your workplace. It’s all about how likely your team is to rave about your company to their friends and family. The best part is that it’s as simple as asking one question: “Would you recommend us as a great place to work?”


To calculate your company’s eNPS, send out an infographic in your employee engagement surveys displaying unhappy faces for scores ranging from 0 to 5, neutral faces for 6 and 7, and happy faces for 8, 9, and 10. Then, subtract the percentage of detractors (those who rated between 0 and 5) from the percentage of promoters (those who rated between 8 and 10).



2. Retention Rate

Your employee retention rate measures the percentage of people who stick around with your company over a set time. While a little turnover is normal, a sky-high exit rate could signal some underlying issues, like limited chances for growth, a lack of diversity and inclusion efforts, or a not-so-supportive team.


To calculate your company’s retention rate, divide the number of employees who have left the company during a specific period by the total number of employees at the beginning of that period. For instance, if 8 employees left during last month, and you initially had 40 employees, the calculation would be: 32 (40 – 8) % by 40, resulting in 0.8, or 80%.



3. Work-Life Balance

Remember earlier when we spoke about how employees are feeling stressed? This is likely because they feel that their work-life balance isn’t cutting it.  The easiest way to suss out how people are doing in this department is by popping a question into your staff employee engagement surveys.


Ask them to rate their work-life balance satisfaction on a scale from zero to ten. Zero means not satisfied at all, and ten means totally blissed out. Or you could ask them to rate their employee benefits that contribute to work-life balance, such as vacation days.


Consider capturing the visual representation of your team’s work-life balance through an optional section in your surveys where employees can upload photos reflecting their work-life balance, such as headshots or snapshots of their workspace or images of their leisure activities. This personal touch, whether it’s serene scenery or snapshots of cherished moments, can offer valuable insights into how your team perceives and manages their work-life balance.


In addition to these metrics, consider integrating questions or metrics related to the digital employee experience in your engagement surveys. This could encompass factors such as ease of access to digital tools, satisfaction with digital communication channels, and overall digital work environment.



Final Thoughts

By tuning into metrics like eNPS, retention rates, and work-life balance, you’re not just checking boxes – you’re peeking into the heart of your company culture. You’ll be able to discover if they’re happy, engaged, into the employee benefits you offer and much more. These numbers tell a story, revealing whether your team is feeling the love or starting to look elsewhere.


So, let’s keep our finger on the pulse with surveys and metrics, make some tweaks where needed, and keep our workplace vibes as awesome as possible. After all, a happy team equals a productive, and profitable workplace, and that’s what it’s all about, right?

Spike Team
Spike Team The Spike team posts about productivity, time management, and the future of email, messaging and collaboration.

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