Like any business objectives, there is a need to develop metrics to measure the results of employee engagement within your organisation.
Here are 5 metrics to consider:
1. Employee engagement surveys
These surveys are an outlet for employees to give feedback on aspects of work such as benefits, working environment and managerial effectiveness. Conducting these surveys shows that the company values the opinions of their employees and that they have a voice in shaping their work environment. Managers can use the data collected to identify strengths and areas of improvement in creating an engaged workplace. A survey by HRMarketer revealed that 58% of respondents stated that such survey data does not or only slightly helped managers understand what behaviours or practices to change in order to improve on their next attitude survey.
2. Employee turnover rates
High turnover rates affects productivity and time. While turnover is generally commonplace, managers should pay attention when large droves of star performers start to leave the company. According to a study by the Society for Human Resource Management, employers will need to spend the equivalent of six to nine months of an employee’s salary in order to find and train their replacement. Doing the math, that means that for an employee salaried at $60,000 will cost the company anywhere from $30,000 to $45,000 to hire and train a replacement.
3. Employee referral percentage
When your employees are happy and enjoy doing work at your workplace, they are more likely to promote the job openings at your company to friends and other professionals. Research has shown that referred employees are more engaged in their work than they otherwise would have been, meaning they have a 13% higher retention rate than hires from traditional sources. Therefore, measuring the employee referral percentage is a good way to measure your employee engagement level.
4. Training and development opportunities
Investing in training for employees can be expensive, but have you priced incompetence lately? According to the National Research Business Institute, 23 percent of employees leave for lack of development opportunities and training. There is a link between training and improved job performance. Training empowers employees to be more proficient in their jobs as they will be better able to manage difficult tasks and gain a competitive advantage over others. When employees are being invested in, they feel more invested in their work. Thus, the investment made in training employees is an important metric to consider in employee engagement.
5. Recognition programmes
Recognition is a low cost, yet high impact strategy to motivate employees and is highly effective to an engaged workforce. It has been found that when companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement. Setting aside a budget for company funded appreciation lunches, “micro bonuses” and gift vouchers goes a long way in recognising your employees hard work and spurs them on to better productivity. Measuring the returns on investments on recognition programs can help you gauge employee engagement.