15 Key Employee Engagement Metrics for a More Positive Workplace
What makes your team tick? Is it just a paycheck, or is there more? Are they excited on Mondays or just looking forward to Fridays? The key? Engagement. That elusive, often intangible element that dictates whether your team merely 'works' or genuinely thrives.
How do we transform feelings, vibes, and atmosphere into tangible metrics we can track, analyze, and improve? Employee engagement metrics.
With these metrics, you're not just gathering data but gaining insight. Understanding motivations, spotting patterns, and driving change.
This article will share 15 game-changing engagement metrics. With these metrics in hand, you're not just gathering data. You're gaining insight: understanding motivations, spotting patterns, and driving change.
🔢 11 Key employee engagement metrics examples to start tracking ASAP
Use these metrics to measure employee engagement levels in your organization.
Depending on your results, these metrics could serve as a red flag, suggesting underlying problems that need attention. Or a green flag, affirming that you're on the right track.
Let's start with some of the most used methods for assessing employee engagement.
Habitual non-presence is a sign of low engagement and poor employee satisfaction.
The worst part is that employee absenteeism has a domino effect.
The more an employee is absent from work, the greater their workload. This, in turn, causes stress and poor work-life balance, leading to even lower engagement.
How to assess levels of engagement through employee absenteeism rate
Use this formula:
It's best to assess your absenteeism rate in terms of its impact on productivity.
Remember that a very low absenteeism rate could be a bad sign. It could mean employees are afraid to call in sick, so they report to work anyway.
Employee performance metrics
A thoroughly engaged employee will show investment in your organization on three levels:
They naturally give their best effort and are willing to make extra effort to contribute to the organization's goals. It leads to high performance levels.
This means your performance metrics are a reliable indicator of employees' engagement.
The most effective performance metrics to measure employee engagement
Analyze these performance metrics:
- Quality metrics: Error rate, accuracy, defect rate, compliance, etc.
- Quantity metrics: Output volume per hour/day/ week, sales revenue, billable hours, projects completed, etc.
- Efficiency metrics: Work output to input ratio, backlog size, cost per unit, etc.
- Organizational performance metrics: Human capital ROI, revenue per employee, profit per employee.
Rate of voluntary turnover
Psychological safety in the workplace, opportunities for career growth, and flexible work schedules are some of the main employee engagement drivers.
A work environment that lacks these factors breeds discontentment among employees. It leads to a high voluntary turnover rate.
To prove this, respondents in a survey conducted on U.S. workers by Pew Research cited the following as some of the top reasons they left a job:
- unfair compensation;
- lack of growth opportunities;
- disrespect in the workplace;
- inflexibility of working hours;
- overworking and underworking;
How to measure voluntary turnover rate
Use this formula to measure the percentage of employees who leave voluntarily:
Measure your voluntary turnover rate consistently. If possible, quarterly. Your aim should be to keep this number as low as possible.
The employee retention rate shows your workforce's contentment in your organization.
A high retention can also drive high engagement among employees. Keeping the same people in the company helps create a positive workplace culture.
It nurtures strong team bonds and enables employees to build strong workplace relationships. This creates a sense of belonging.
All these drive higher engagement.
How to measure retention rate
Use this formula:
Job satisfaction is the overall contentment of employees with their working conditions.
It measures their comfort and happiness in the workplace, affecting their emotional commitment to work.
Unmet workplace needs are a cause of low employee engagement.
How to measure job satisfaction levels
A simple survey can provide valuable insights into the levels of employee engagement based on how satisfied they are.
Add a mix of close-ended and open-ended questions about employee satisfaction. Here are some examples:
- On a scale of 1 to 10, how would you rate the physical work environment here?
- Do you feel your current compensation and benefits package is competitive for your role?
- Do you feel that the organization prioritizes diversity and inclusion?
Categorize the questions into the sub-metrics that affect employee satisfaction, such as compensation, work environment, diversity and inclusion, etc.
It'll make it easier to make sense of the data collected.
Research has proven that high employee engagement positively affects customer satisfaction and retention.
A highly engaged employee is fully immersed in their work and enthusiastic about their role duties. They're more likely to go the extra mile to help a customer.
How to measure customer satisfaction levels
You can measure customer happiness through:
- Net Promoter Score (NPS): This single-question survey measures customer experience: "On a scale of 0 to 10, how likely are you to recommend us to a friend?"
- Customer feedback: Collect customer feedback across all touchpoints.
- Online reviews: Pay attention to customer reviews on platforms like Google Reviews and Trustpilot.
- Customer behavior analysis: Observe how customers behave. For instance, customer loyalty could mean they're happy.
A study conducted on Slovenian employees showed that organizations that implement policies and practices that support work-family balance experience high work engagement.
In fact, the study shows that employees' individual perception of the organization's support for work-family balance is enough to drive engagement.
How to measure work-life balance
Employee survey questions can help you gauge their sentiments about work-life balance in the organization. You can ask:
- On a scale of 1 to 10, how satisfied are you with your time outside work to rest and recharge?
- Do you feel your workload is realistic regarding the time and effort needed?
Quality of workplace relationships
Employees are intrinsically engaged when they experience positive workplace relationships.
An analysis by Gallup in the 2023 State of the Global Workplace report found that:
"How people feel about their job has a lot more to do with their relationship with their team and manager than being remote or being on-site."
Whether an employee works remotely, on-site, or in a hybrid work arrangement doesn't matter. They need to connect positively with their colleagues.
Social connection is a basic psychological need, and it drives engagement.
The employee's effort to create connections with people outside their immediate team members also indicates how engaged they are in the workplace.
An engaged employee will aim at creating broad networks.
How to measure workplace relationships
Employee feedback mechanisms can be quite effective here.
Check complaint logs as well. Be sure to assess records on conflict resolution among individuals and teams.
You can also use a pulse survey to check how employees get along with their colleagues and supervisors.
Here are some questions you can ask:
- How often do you interact with your colleagues on a day-to-day basis?
- Describe an instance where you sought advice or mentorship from individuals outside your immediate team?
- How would you rate your relationship with your immediate supervisor?
Employee participation in engagement surveys
An annual employee engagement survey is a valuable tool for keeping track of employees' sentiments about their workplace.
A poor employee participation rate is a bad sign without even assessing the survey results.
It can mean that employees feel disconnected from the organization's culture and goals and see no value in participating in the survey.
Formula to measure the engagement survey participation
Define which employees are eligible to take part in the employee engagement survey.
Then, calculate the rate of participation as follows:
Professional development opportunities
A survey by the American Psychological Association showed that employees often feel tensed and stressed if they are unsatisfied with the growth opportunities at work.
Inadequate growth opportunities in the workplace create feelings of stagnation and a lack of personal fulfillment. It's a cause of low engagement.
Assess how employees view their chances for career growth in the organization to understand their level of engagement.
How to measure employees' perception of the organization's growth opportunities
Ask these questions:
- Are there clear opportunities for career development within the organization?
- How satisfied are you with the training and development opportunities offered in the organization?
Alignment with the organization's objectives and vision
Employees need to understand how their role contributes to the organization's strategic direction.
It makes their work feel meaningful and creates an emotional connection to the organization.
How to measure employees' alignment with company objectives
These questions will help:
- Can you offer examples of how your role directly contributes to achieving the company's objectives?
- On a scale of 1 to 10, how well do you understand how your team's objectives relate to the company's overall goals?
🤠 4 Unconventional employee engagement metrics
Use these out-of-the-box key metrics for more actionable insights about employee engagement levels.
Innovation in the workplace indicates employees' enthusiasm and dedication towards their work.
Engaged employees contribute creative ideas and solutions. They also show commitment to seeing them through to implementation.
How to measure innovation in the workplace
Analyze the total number of employee-generated ideas.
Calculate the implementation rate as well using this formula:
Survey questions can also come in handy. Here are a few you can use:
- Have you ever submitted an innovative idea that was implemented? If yes, how did it impact the entire organization?
- Have you taken any training or guidance on generating creative and innovative ideas?
An engaged employee takes pride in their workplace.
They're more likely to:
- Promote the organization and its offerings positively through word-of-mouth and social media mentions
- Recommend job openings within the organization to friends and family
How to measure levels of engagement through employee ambassadorship
If you have an employee referral program in your organization, track the participation rate.
The right survey questions can also provide the answers you need:
- On a scale of 0-10, how likely are you to recommend the organization as a good place to work?
- Can you describe a specific instance when you recommended our organization to someone in your personal or professional network? What motivated you to do so?
The ratio of engaged employees to disengaged employees
Emotions and attitudes are contagious. When there are more engaged employees than disengaged, it can lead to an overall improvement in workplace engagement.
The disengaged employees are likely to model the behavior of their more engaged colleagues—their enthusiasm, commitment, and positive attitude.
So, improving this ratio indicates you're on the right path.
How to measure the ratio of engaged employees to disengaged employees
Use this formula:
A ratio greater than 1 is a positive result. It indicates there are more engaged employees than disengaged. Lesser than 1 indicates that disengaged employees are more.
The effectiveness of managers impacts employee engagement. This goes for both direct and skip-level managers.
Good managers practice effective communication and build personalized relationships with employees.
They create time for regular one-on-one meetings where they connect with the employee, address their concerns, and provide constructive feedback.
While spending too little time on one-on-ones can decrease engagement, dedicating too much time to it can also have the same negative impact.
It can lead to meeting overload, which can be burdensome for the employee.
Meeting overload reduces the period employees have to complete their daily tasks. Eventually, it takes a toll on their overall well-being.
We recommend holding weekly one-on-one meetings. They drive engagement without overburdening the employees.
How to measure management quality
These questions can gauge employees' satisfaction with their managers:
- On a scale of 1 to 10, how effective is your immediate manager in providing clear direction and guidance for your work
- Have you ever participated in a skip-level meeting with a higher-level manager?
Ask employees who are leaving the company to rate their manager. During the exit interview, you can ask: What aspects of your manager's leadership style did you find most effective or ineffective?
🚨 The data from these employee engagement metrics can provide insights into the weaknesses in your organization that are hindering employee engagement. This helps you take more relevant improvement measures.
👀 We have some excellent examples of employee engagement strategies from 11 companies to inspire your efforts.
🩺 Measure employee engagement metrics using these simple tools
Annual employee engagement surveys
They give real-time insights into employees' perceptions of their own engagement levels.
You can use the results as a benchmark to gauge the impact of your employee engagement efforts and how employees perceive those efforts as effective.
❓ Check out 55 employee feedback survey questions. There are plenty of options for questions to include in your surveys.
Employee pulse surveys are short, frequent surveys designed to quickly capture the overall mood, sentiments, and concerns of employees within an organization.
Unlike comprehensive annual or biannual surveys, pulse surveys offer real-time insights, allowing management to promptly address issues and track the impact of ongoing initiatives.
Employee Net Promoter Score (eNPS)
An Employee Net Promoter Score provides a numeric score of employees' contentment levels with their workplace.
Here's how it works.
Ask a survey question requiring the respondent to provide a rating of 1-10. For instance, "On a scale from 1-10, how likely are you to recommend this organization as a place to work to a friend or family member, with 1 being extremely unlikely and 10 being extremely likely?"
Based on the scores given in the responses, group the respondents into:
- Promoters: Scores of 9 or 10
- Passives: Scores of 7 or 8
- Detractors: Scores below 6
The eNPS score is the difference between the most and least satisfied employees.
❓ If you want to keep the spirit of eNPS but ask additional questions, we have the resource for you. Check out 30 eNPS survey questions to assess employee satisfaction and loyalty.
Exit interviews are great for gathering constructive feedback from employees leaving the organization.
Their experiences can provide insights into various aspects of the employee journey, highlighting where the organization is winning or failing.
These are meaningful conversations with current employees to understand what makes them engaged or disengaged.
It provides real-time insights into what you're doing well, how you can improve, and steps you can take to create a happier workplace.
➡️ We have created a list of the best tools to measure employee engagement accurately and easily.
🛠️ If you want tools that not only measure but also help you take the right action plan, check out this list of employee engagement software. It includes tools to nurture a productive workforce, support data-driven decision-making, and more.
🕵️♀️ Why your organization needs employee engagement metrics
Measuring employee engagement metrics shows if your efforts to make employees more satisfied at work are effective.
Having a super-engaged workforce is a big win for your organization.
Statistics show a direct correlation between employee engagement and employee effectiveness. Employees with high engagement levels are 17% more effective than disengaged employees.
Research data also shows that the customer rating of organizations with an engaged workforce is 10% higher than companies with disengaged teams.
Because of such factors, companies with high employee engagement are 21% more profitable than companies with low engagement.
➡️ Have a look at these key employee engagement statistics for a more holistic view of the importance of tracking employee engagement metrics.
➡️ Measure and improve key employee engagement metrics with Zavvy
Efficiency when measuring these employee engagement metrics is crucial. It will provide you with accurate results to implement relevant employee engagement strategies.
Zavvy's employee engagement software helps you achieve this efficiency. You can:
- ✍️ Create automated engagement surveys using a template or easily build from scratch.
- 🥸 Define anonimity settings: If anonymous surveys are the way for your organization, Zavvy fully supports it. You're in full control over the best strategy for your workplace.
- ❓Combine quantitative and qualitative questions for meaningful and actionable insights.
Here's another cool feature you'll love—the dashboard overviews. You can track multiple metrics simultaneously, customized per team, manager, hire date, and more.
Once you have the results from your metrics, Zavvy supports you with a suite of tools to sustain employee engagement throughout the employee journey:
- 🧑🎓 A world-class training library to encourage professional development.
- 🧭 Career pathing solutions to support employees in their career aspirations.
- 🧮 Competency and skill assessments to help your people understand their strengths and improvement potential.
- 👯 Connection programs, such as walk & talk meetings, to bring your people together.
- 💼 Leadership development to ensure that your managers are champions of a positive workplace.
📅 Elevate your workplace, one engaged employee at a time. Book a demo today to see these features in action.
What are employee engagement metrics?
Employee engagement metrics are quantitative and qualitative measures used to assess the level of commitment, enthusiasm, and connection employees feel toward their place of work, roles, and the organization's mission and values. These metrics provide insights into the overall health of a company's workplace culture and the effectiveness of its employee retention strategies.
You can derive these metrics from surveys, feedback, turnover rates, and other data sources.
What is a KPI for employee engagement?
A KPI for employee engagement is a quantifiable metric. It evaluates employees' physical, mental, and emotional connection to their work and the organization.
What type of metric is engagement rate?
An employee engagement rate is a quantitative metric that measures the level of commitment and satisfaction among employees relative to the total number of employees in the organization.
What are the 5 C's of employee engagement?
The 5 C's of engagement are the key drivers of employee engagement. They include:
- Connection: Employees need strong and positive relationships with colleagues and supervisors.
- Contribution: They need to believe that their ideas matter and that their role helps the organization achieve its strategic objectives.
- Communication: Employees need open and transparent communication from leadership as well as clarity on their role expectations.
- Career development: They need access to training and development programs and a clear career path.
- Congratulation: Employees need to feel appreciated for their achievements and contributions.