Employee Engagement Measurement
EMPLOYEE ENGAGEMENT MEASUREMENT
How
do you measure employee engagement?
Some things are easy to
measure, like how many glasses of water you drink each day or how many miles
you run each day. Because it is a combination of motivation, happiness,
satisfaction, and commitment—all of which are difficult to measure. Employee engagement is
difficult to measure. Sometimes it's not just about the company, salary, or prestige;
rather, it's about the mental relaxation and satisfaction. When we analyze the
modern HR trends, we can realize the retention ratio of employees are
uncertain. In modern society the prestige of
the company or salary will not a strong reason to retain the employee.
Employee engagement matrix will help to identify the connection and commitment of employees towards the company, there are ten main formulas to identify the employee engagement of any company.
1) 01] Voluntary employee turnover rate.
In normal circumstances employees leave the company for seeking new opportunity or sometime they leave the company due to job unsatisfaction. There may be single or various reasons for their unsatisfaction. High employee turnover rate is badly effect on any company. They have to invest a higher portion of profits on employee recruitments and training.
02] Employee retention rate
Like employee turnover rate any company can calculate employee retention rate. This describes the employee willingness to stay in the same organization and their commitment to the company and their engagement in the company.
The formula to calculate the employee retention
rate as follows.
When the retention rate is high it shows the
company stability. With the experience and exposure of the employees the organizational
culture will develop. The cost of staff recruitments and training will be
reduced. Finally, the employee engagement towards company goals will be high.
03] Absenteeism
Employee absenteeism can be a major issue for any company. This formula helps to calculate employee absenteeism of a company.
On a scale of 1-10 you can break it down
into detractors, passives, and promoters.
·
Promoters – Employees that respond either 9 or 10, which is an
indication that an employee is satisfied.
·
Passives – A score between 7 and 8 indicates the employee is
neither happy nor unhappy but feels neutral. They won’t recommend the company
to a friend, but they won’t bad-mouth them either.
·
Detractors – Any employee that gives a score below 6, which
indicates that the employee is not satisfied.
5) 05] Employee satisfaction
Employee satisfaction
plays a major role in employee engagement. There are many factors that affect
the employee
satisfaction. Working
condition,
wages, leadership.
team sprite, work-life balance is some of them. High employee satisfaction will
result to high employee engagement.
6) 06] Employee
Performance
Employee performance
will decide the growth of the company. Brand name or Net worth of a company
will no more there if there is low employee performance. Employee performance
we can categorized in to 04 categories.
·
Work quality metrics – Such as number of errors, net promoter
score, or 360-degree feedback.
·
Work quantity metrics – Such as number of sales, number of units
produced, handling time
·
Work efficiency metrics – Balancing the qualitative and
quantitative employee performance metrics
·
Organizational performance metrics – Revenue per employee, human capital ROI
(Vulpen, 2022)
07] Glassdoor.com
rating
With the technology development employees can
check the rating of their own company’s rating online. Just “Google” the
company and see the employee satisfaction rate. If somebody interested about a
new company, he can visit Google and search for Glassdoor reviews of the
company. The ratings on Glassdoor are based on published employee feedback on a
5-point scale. Starting from strongly dissatisfied to strongly satisfied. (0-5)
8) 08] ROI
on Employee Engagement
High employee
engagement is the most important reason for increase company profits. ROI on
Human resource is a vital factor for any company. Employee benefits are at a cost.
Therefor company has got the maximum employee engagement as a return.
“Disengaged
employees who aren’t psychologically attached to their work will drag their
feet to work and struggle to perform to the best of their ability,” Wieczorek
said.
High
level of employee engagement will direct to get high return to the
company. In Gallup’s findings it will
clearly describes.
Employee Engagement data from Gallup corroborates that, as highly engaged teams were found to be 21% more profitable and 17% more productive. They were also 41% less likely to have problems with absenteeism.
09] Customer Happiness
Happy and satisfied employee will service their customers in the same way. If the employee engagement levels are high their service standards are high. When employees provide a superior customer service the customers are satisfied. This will result into increase of business and finally more profits to the company, vise a versa.
There are many employee engagement scales to measure Employee engagement any organization. UWES and Gallup scale are the best two tested metrices to find the employee engagement.
Measuring employee engagement will help to improve employee wellbeing an increase the revenue for the company.
Vulpen, E. (2022). 10
Employee Engagement Metrics to Track at Your Organization. [online] AIHR.
Available at: https://www.aihr.com/blog/employee-engagement-metrics/.[Accessed 5 Apr.
2023].
Van Vulpen, E. (2021). What is Voluntary Turnover?
Definition, Causes, and Calculation. [online] AIHR. Available at: https://www.aihr.com/blog/voluntary-turnover/ [Accessed 8 Apr. 2023].
AIHR. (2021). 5 Useful Employee Satisfaction
Metrics to Track. [online] Available at: https://www.aihr.com/blog/employee-satisfaction-metrics/ [Accessed 9 Apr. 2023].
Lattice. (n.d.). The ROI of Employee Engagement: 5
Reasons It’s Worth the Cost. [online] Available at: https://lattice.com/library/the-roi-of-employee-engagement-5-reasons-its-worth-the-cost. / [Accessed 9 Apr. 2023].
Vulpen, E. van (2019). 5 Employee Engagement Best
Practices for HR Professionals. [online] AIHR. Available at: https://www.aihr.com/blog/employee-engagement-best-practices/
[Accessed 9 Apr. 2023].
Talmetrix (2019). How to
Effectively Measure Employee Engagement in 7 Proven Steps. [online]
SnackNation. Available at: https://snacknation.com/blog/measuring-employee-engagement/ [Accessed 9 Apr. 2023].
Qualtrics. (n.d.). How do we measure employee engagement effectively? [online] Available at: https://www.qualtrics.com/experience-management/employee/measure-employee-engagement/
[Accessed 9 Apr. 2023].
If a company pays aattention on employee engagement memeasurement it will help to minimize turnover rate, absenteeism and increase productively
ReplyDeleteThe best way to describe the employee engagement is to use Maslow s needs if hierarchy. Don't you think?
ReplyDeleteEmployee engagement measurement involves assessing the level of commitment, motivation, and satisfaction of employees. It can involve surveys, focus groups, interviews, or any other quantitative or qualitative method to assess employee engagement. By measuring employee engagement, organizations can better understand what motivates their employees and tailor their training and development initiatives to address areas of improvement.
ReplyDeleteYes, organization's first priority has to be measure the engagement levels of their employees . As you mentioned using surveys , interviews, performance appraisals andusing many methods . Gallup was introduce so many measurement styles to measure the employee engagement levels . Thank you for the comment
ReplyDelete