10 Crucial Metrics to Measure Employee Engagement

Employee engagement is paramount to any organization’s success. Engaged employees are motivated, enthusiastic, and invested in performing better. 

Studies show that companies with engaged employees are 21% more profitable and outperform their competitors. At the same time, disengaged employees cost organizations up to $500 billion dollars annually. In the post-pandemic economy, this is a worrisome statistic. 

So, how do you improve employee engagement and motivation? 

Gathering employee engagement data to improve visibility is the first step to creating effective and meaningful strategies that drive positive change. Yet, for many frontline organizations, it can be hard to figure out which employee engagement metrics to track and how.

? Secchi is an employee relationship management (ERM) tool that helps frontline leaders connect with employees using data-driven insights. In this article, we’re going to unpack the metrics to measure employee engagement and how to track them. 

What Are Employee Engagement Metrics?: The Challenge with Quantifying Culture 

Employee engagement is crucial for success, but how do you measure it? While some employee engagement metrics are easily quantifiable (ex: attendance), others can feel much more elusive. 

Employee well-being, workplace relationships, and company culture are important factors that affect employee engagement. Yet, many leaders struggle to measure them. 

?Understanding and measuring employee engagement is complex and requires leaders to pay attention to multiple dynamic factors within the organization. Start with these ten key metrics ⬇️

10 Metrics to Measure Employee Engagement 

1. Productivity 

Highly engaged employees tend to be more productive, as engaged workers are likely to invest more time and effort into their responsibilities. Tracking employee performance levels can give you valuable insights into how engaged they are as well as identify areas to improve. 

To measure employee productivity, organizations can implement various tools and techniques. Monitoring performance data, such as attendance and completion rates, is a great way to quantify engagement. Moreover, employee engagement surveys and one-on-one meetings can shed light on the context behind the productivity data. 

Read on: 

→ How to Improve Productivity in the Workplace: 7 Ideas

2. Well-Being

When employees are physically and mentally fit, they are better equipped to engage fully with their work. In the frontline work environment, where nearly 50% of workers want to quit their job and 58% of them cite burnout as their top reason for leaving, tracking employee health and wellness levels is crucial. 

Frontline employees often work in physically demanding or high-stress conditions. It’s important to thoughtfully and proactively monitor and improve their well-being with regular health check-ups, mental health resources, and wellness programs. 

3. Employee Recognition Rate

Regular and meaningful employee recognition can boost morale and engagement levels. In fact, over 40% of Americans believe that they would put more energy into their work if they were recognized more often. 

To measure recognition, start with identifying what kind of employee recognition programs your organization has in place. Then, use surveys, feedback systems, and participation rates to figure out how your employees feel about the recognition programs in place and how you can improve them. 

Learn more: 

→ Gamifying Employee Rewards: The Future of Engagement 

→ Modern Employee Recognition Programs That Work: 5 Strategies

4. Employee Net Promoter Score

Tracking the Employee Net Promoter Score (eNPS) is a popular employee engagement measurement method. It involves just one simple question: “On a scale of 1-10, how likely are you to recommend this company to a friend?”. 

Depending on their answers, you can categorize the respondents into promoters, passive, and detractors. Employees who select 1-6 are detractors and are not happy with the company. Those who select 7-8 are passives. Promotes are the highly engaged team members who select 9-10. 

? You can get your eNSP using this formula: (Promoters-Detractors)/Total Respondents. An Employee Net Promoter Score above 50% is typically an indicator of a healthy and engaged team.

5. Employee Retention Rates

In the Era of Great Resignation, tracking your employee retention rate is an important way to measure engagement. In 2023, 42% of workers are actively considering quitting their jobs, but effectively engaging your employees makes them more likely to stay at your company in the long term. 

Identifying patterns in your employee retention rates and conducting exit interviews or surveys can give you insight into why your workers are quitting and how you can engage them better. 

6. Employee Satisfaction Index

When employees are content and fulfilled in their roles, they’re naturally more engaged and productive. To measure job satisfaction, many organizations use an Employee Satisfaction Index (ESI). 

To calculate ESI, ask your employees a series of questions on a ranking scale with 1 being the lowest and 10 being the highest. Questions can include: 

• How satisfied are you with your current workplace? 
• How does your employment compare to your ideal employment? 
• Are you happy with your work-life balance? 

Determining what percentage of employees are satisfied with their role and where your workplace is falling short can help identify insightful patterns and drive positive change. 

Learn more: 

→ Instant Gratification in the Workplace: Problem or Opportunity? 

7. Absenteeism Rate

High rates of absenteeism can signal underlying issues such as low morale, stress, burnout, and disengagement among employees. Absenteeism’s impact extends beyond individual employees. Seeing their team members frequently miss work can prompt other employees to be chronically late or absent as well. Setting clear expectations and holding your team accountable using Secchi can help. 

Learn more: 

→ From Late to Great: How to Deal with Employee Absenteeism 

8. Workplace Relationships

Relationship dynamics, both with supervisors and coworkers, can have a significant influence on your employees’ motivation, job satisfaction, and engagement levels. A healthy and supportive environment at work enhances collaboration and teamwork. In turn, strained relationships can lead to stress and decreased productivity. 

Anonymous surveys and one-on-one meetings with your employees can help you assess the current state of the relationships in your workplace. Regular employee feedback mechanisms, open door policies, team building activities, and conflict resolution initiatives can help build a more engaging environment. 

Learn more: 

→ 10 Epic Team Building Activities for Frontline Workers

9. New Hire 90-Day Failure Rate

When a new hire leaves the organization within the initial 90 days, it indicates a misalignment between the individual’s expectations and the actual workplace or job role. Often, this misalignment happens because of a disengaging work environment where the employee doesn’t feel connected, motivated, and valued. 

Evaluating your new hire 90-day failure rate can help you understand if employee engagement is a problem at your organization and what areas could be improved for better retention. Exit surveys and anonymous employee feedback are great ways to gather more insight. 

10. Professional Development

Frontline employees are eager to learn and grow professionally, but many organizations don’t provide ample opportunities for workers to develop their skill sets or advance in their careers. In fact, nearly 50% of employees are unhappy with their employer’s learning and development programs. As a result, employees can feel stuck in their roles, and engagement levels can drop. 

Gathering feedback on the quality and availability of professional development opportunities within your organization can help you determine whether this is an area that needs improvement. 

How to Measure Employee Engagement Metrics: Best Strategies

Effectively measuring employee engagement metrics is both an art and a science. Understanding employee engagement is as much about numbers as it is about people and identifying deeper behavior drivers and patterns. To succeed, consider implementing the following strategies into your organization’s operations: 

• Stay Proactive: When it comes to employee engagement, it’s crucial to address challenges before they escalate. Prioritize fostering a positive organizational culture and make it easy for supervisors and HR leaders to think forward and make strategic decisions.
  
• Implement Continuous Performance Management: Continuous improvement is the main driver of success. Go beyond annual reviews and tracking basic data like attendance and implement a continuous performance management process that allows you to unlock the full potential of your team.
  
• Invest in Leader Growth: Frontline leaders and supervisors navigate a high-stress environment on a daily basis, yet most of them are entry-level managers who need better tools to succeed. Equipping supervisors with an employee relationship management platform like Secchi helps them become better leaders.
  
• Encourage Frequent Communication: Fostering a feedback culture at your organization can improve the trust and engagement of your employees. 

To successfully implement these strategies in your organization, a data-driven approach is key. 

? At Secchi, we understand the challenges that frontline leaders face in driving employee engagement. That’s why our frictionless employee relationship management solution is designed to empower leaders to be more proactive with data-driven insights.

Book a demo today and discover what Secchi can do for your workplace.