Identifying KPIs within your organization is key for continuous improvement. And while sales growth, customer retention, and profit margins are all things that you want to carefully monitor, employee engagement is a metric that can impact your bottom line in a big way.
Understanding how your employees truly feel about their work at all times is no small task, so we’ve identified four key metrics that you can track to get a more clear picture of your overall employee engagement.
Retention
Your company's turnover rate is a huge indicator in employee engagement and one to keep a close eye on. You can use the formula below to calculate the rate; once you understand your baseline, you can set SMART goals to improve it and track your progress. Your employee engagement initiatives should lead to a decrease in the turnover rate.
Absenteeism
While employees are expected to take some time off, constantly missing work can be a sign that someone is disengaged. See the formula below for calculating the absenteeism rate. To ensure that your engagement initiatives are creating a positive impact on your organization, similarly to the turnover rate metric, your initiatives should decrease your absenteeism rate.
Productivity
How productivity is tracked can change drastically from company to company. Gather key stakeholders and identify which productivity metrics matter most to your company. Remember to only select a handful in order to keep things simple. Some ways to measure productivity include tracking employee or team output, relying on peer assessments, or setting specific milestones in the project management tool of your choice.
Employee Net Promoter Score
Adapted from the Net Promoter Score, which was developed to measure customer loyalty, the Employee Net Promoter Score paints an extremely simplistic image of overall employee satisfaction. The eNPS asks the following question, which participants respond to by rating from 0-10:
How likely are you to recommend us as a place to work for your family and friends?
Depending on their score, participants are either grouped as detractors, passives, or promoters. This grouping method gives a general indication of their engagement.
As with all metrics, keeping all data organized and being open to changing what you track along the way is key to monitoring and improving performance. If you would like a hands-free way to improve your employee engagement within your company, contact us to get started on your custom experience gift set.
