Grace Smith
December 29, 2023

Looking for ways to create a more inclusive and productive workforce? Want to know how to effectively measure employee engagement? You're in the correct place if you're nodding!

A crucial element that will determine your company's success is employee engagement. Employee engagement increases motivation, productivity, and profitability, which improves business outcomes. Everything is impacted by employee engagement, motivation, and productivity. Without dedication, businesses cannot succeed. In order to maximise employee potential and promote business success, it is essential to measure employee engagement. However, determining the appropriate tools and KPIs for us can be challenging, and many organisations face this issue.

We examine the metrics and technologies available to measure employee engagement in this blog post. We'll delve into the advantages and restrictions of each tool and offer guidance on how to use them to get useful insights.

By the end of this post, you'll have a better understanding of how to measure employee engagement and create a more engaged and motivated workforce. So let's get started!

What is employee engagement? 

Employee engagement can be defined in many ways, but one quote that sums it up well comes from Virgin Group founder Richard Branson.

He said, "Engage your employees and see your company soar."

Which term accurately describes employee engagement: Is it job satisfaction or providing employees with a comfortable workspace? 

Yes, it includes both but there are many other factors responsible for employee engagement. Employee contentment does not necessarily equate to employee engagement. Rather, it pertains to the emotional and psychological ties that an employee develops with their work, peers, and ultimately, the company. Enthusiastic, driven, and happy workers are considered to be engaged, which in turn leads to enhanced productivity and better business outcomes.

Devoted employees often establish long-term rapport with their organization. They are determined, motivated, and primed to realize the objectives of the organization. As a result, personnel are more inclined to take accountability for their tasks, communicate effectively with their colleagues, and derive a sense of meaning and satisfaction from their positions. Employee engagement is much more than a corporate buzzword. It represents the crucial factor that can either make or break a company's existence.

Why is employee engagement essential? 

Employee engagement plays a crucial role in organizations, as it bolsters productivity, employee retention, and overall business success. Statistical data demonstrates that high engagement levels in employees lead to a 59% reduction in turnover rates when compared to those employees who are less engaged, as observed in many business teams.

For instance, let's imagine that you are managing a group of employees who work in a call centre, catering to customer inquiries and resolving complaints. If your employees are disengaged from their work, it may affect their motivation to provide quality customer service.

A lack of employee engagement can result in catastrophic consequences for any business. It can lead to unhappy customers, decreased customer loyalty, and a drop in business turnover. Conversely, when your team members are devoted and committed to their work, they tend to be more driven to offer excellent customer service. This results in enhanced customer satisfaction, increased customer loyalty, and ultimately, a surge in the company's turnover.

Employee engagement is comparable to the oil in a machine. In the same manner, as oil is vital to lubricate a machine's moving parts, ensuring that it operates smoothly and efficiently, employee engagement is critical to lubricating an organization's moving parts and keeping it running seamlessly and efficiently. When your employees are engaged, they function as a harmonious team, and every individual part works in sync with the others. This leads to a well-oiled machine, which is essential for any business to flourish in today's fiercely competitive market.

Investing in employee engagement is not just a "nice to have" for organizations; it's a must-have. Let’s see the proven strategy and the ways for employee engagement. Before that, let’s take a look at the benefits of employee engagement. 

Benefits of Employee Engagement

1. Improved Productivity

Engaged employees are more productive and efficient than their disengaged counterparts. According to a Gallup study, companies with highly engaged employees outperform their competitors by 147% in earnings per share.

Engaged employees take ownership of their work and are more committed to achieving organizational goals, resulting in increased productivity levels.

2. Less Turnover

High employee turnover is a significant cost for organizations no matter if in terms of time or money. Engaged employees are less likely to leave their jobs, reducing this need for costly recruitment and training given.

3. More Customer Satisfaction

Engaged employees are always more likely to provide exceptional customer service, leading to higher customer satisfaction. A statistics study from Temkin Group proves that companies with highly engaged employees have a 10% higher customer satisfaction rate than those with disengaged employees.

4. Higher Profitability

Companies that prioritize employee engagement initiatives see a significant improvement in profitability. Investing in employee engagement is important for a company to improve its profitability.

5. Improved Innovation

Engaged employees are more likely to be innovative and creative in their work. They are more willing to contribute new ideas and take risks, leading to better business outcomes.  According to a study by Aon Hewitt, companies with highly engaged employees are more than twice as likely to be innovative.

Top 10 Tools to Efficiently Measure Employee Engagement

Let us have a look at some of the top tools that companies use to increase the level of employee engagement:

1. Employee Engagement Surveys

This is a common tool used to collect feedback from employees about their engagement levels. Surveys can be conducted annually, quarterly, or monthly and can include questions about job satisfaction, employee motivation, and workplace culture. These surveys may not accurately reflect the mindset of the employees. They can be biased and not represent the workspace environment.

2. Pulse Surveys

These are short, frequent surveys (e.g. weekly or monthly) that are designed to gather regular feedback from employees about their engagement levels. These surveys mostly contain simple questions so there are likely to get more responses. These are easy indicators of the engagement level of the employees.

3. Focus Groups

Focus groups are small, moderated discussion groups that can be used to gather qualitative feedback from employees about their engagement levels Collect qualitative data from a group with similar experiences. Provides insight into how employees feel about their work, workplace, and overall experience with the company.  Identifying areas for improvement in employee engagement can improve productivity, job satisfaction, and retention.  

4. Individual meetings 

Employees might be personally interviewed by managers to discuss engagement and pinpoint opportunities for development. Through video calls, this can also be done virtually. As a result, they have a personal connection to the business and are able to work more passionately. Employees are free to speak openly, express their actual ideas, and provide thoughtful responses. 

 5. 360-degree evaluation 

This technique focuses on gathering feedback from an employee's bosses, peers, and subordinates in order to get a complete picture of their level of involvement. This useful tool offers broad commentary about the business from many corporate departments.  

6. Analysis of social media 

Social media platforms, which track employee behaviour and opinions on company pages, can provide useful information regarding employee engagement.

 This can also be done through emails and newsletters when employees open emails and newsletters who are interested in recent company activity and are likely to interact with the company. 

 7. Net Promoter Score (NPS) 

Net Promoter Score (NPS) is a measure employed by enterprises to quantify customer loyalty and contentment. This assessment framework is grounded on the concept that customers can be divided into three distinct clusters: promoters, passives, and detractors. Promoters denote customers who are extremely content with the enterprise and are prone to recommend it to others. Conversely, detractors are customers who are dissatisfied and may even dissuade others from conducting business with the enterprise. Customers who fall under the passives category indicate that they are content with the enterprise's services or products, but they are not necessarily loyal to the brand.  

8. Employee performance officers

Employee performance metrics, such as productivity, attendance, and turnover rates, can provide valuable insights into employee engagement levels.

9. Exit Interviews

Exit interviews can provide valuable feedback from departing employees about their engagement levels and reasons for leaving.

10. Employee Recognition Programs

These programs can provide insight into employee engagement levels by tracking employee participation and engagement in recognition activities. Because becoming unrecognized even after working regularly in a busy schedule is easy and it can be avoided by an employee recognition program.

Employee success platforms are built to bring these different solutions together. ThriveSparrow offers powerful survey tools to gather valuable insights and track engagement levels effectively. Additionally, the comprehensive recognition solutions foster a culture of appreciation, motivating your workforce to excel.

Screenshot of question banks in ThriveSparrow's Engage module
Screenshot of the Kudos feed in ThriveSparrow

Supercharge your employee engagement strategies with ThriveSparrow and unlock the true potential of a more engaged, motivated, and productive workplace. Sign up for early access now!

Metrics of Employee Engagement

There are several metrics that organizations can use to measure employee engagement. Here are some common ones:

Engagement Index

This parameter evaluates the overall level of engagement among Employee employees in an organization. It's usually calculated based on the results of employee engagement surveys and other feedback tools.

Turnover Rate

This particular metric measures the number of employees who leave an organization over a certain period of time. High turnover rates can indicate low engagement levels and dissatisfaction among employees.

Absenteeism Rate

It is the number of employee absences over a certain period. High absenteeism rates can be a sign of low engagement levels and employee dissatisfaction.

Employee Net Promoter Score (NPS)

This measure evaluates the allegiance of employees and their ability to endorse the organization to others. It is assessed by inquiring whether employees would suggest the company to others on a rating scale of 0 to 10.

Employee Satisfaction

This indicator assesses how satisfied workers are with their jobs in terms of pay, perks, job security, and workplace culture.  

Keeping staff around 

It evaluates the proportion of workers who have been with an organisation throughout time. A high retention rate may be a sign of highly engaged and content workers. 

Wrapping up...

Any company's ability to succeed is greatly influenced by how committed its staff is. Employee engagement increases motivation, productivity, and engagement, which improves company outcomes. Surveys, focus groups, social media analytics, and performance measurements are just a few of the methods and measures they can utilise.

Armed with these insights, businesses can take action to improve engagement levels and create a positive workplace culture that attracts and retains top talent. By investing in their employees' engagement, companies can unlock their potential and achieve long-term success.