The time has come to start thinking about employee engagement as a measure of organizational success that is as important as growth and revenue. In today’s hyper competitive and connected world, true employee engagement may just be the differentiator between businesses that succeed and those that don’t.
Because engagement is a critical business metric, you may be wondering, how do you accurately measure it? It can seem a bit nebulous or qualitative, unlike the hard analytics you’re used to. Luckily, there are several ways to quantify employee engagement and track it over time. Here’s where to get started.
1. Engagement Surveys
For years, annual employee surveys were the best (and only) available tool for measuring employee engagement. But today’s leading organizations are moving away from annual surveys in favor of more frequent surveys and continuous feedback in order to get a more timely, accurate and actionable read on engagement. Here’s how you can use engagement surveys to better understand employee engagement:
- Weekly pulse surveys that ask just a few questions. Start with something simple, like “Would you recommend us as a place to work?” and make sure to occasionally repeat the question so you can track changes.
- Active listening interface that acts as an always-on, intelligent, open channel for employees and managers. With Achievers Listen, via a visual single-click poll, employees share day-to-day engagement confidentially. Based on employee response, Allie, an active listening interface, follows up with simple, friendly conversational questions to better understand how the employee feels and perceives work. Gather feedback, ask questions, and get updates, next actions, and ideas to impact engagement right away.
- Historical data that shows trend lines as organizations shift. Engagement can shift as organizations go through high and low times.
- Comparison data between departments and functions. Some parts of the organization will naturally be different from others, but use that data as a discussion starter to make sure engagement is on the right track.
2. Pulse Surveys
For employee engagement, it can be helpful to ask employees one simple question: How likely are you to recommend our business to a friend as a place to work?
The question can be measured on a 1 to 10 scale, with one being the low end and 10 the high end. Scores of 9 and 10 are promoters — employees who would actively recommend your place of work to a friend. Scores of 7 and 8 are passive — they wouldn’t take the action to recommend, but that doesn’t mean they aren’t fans. Scores of six and below are detractors — if a friend were to ask about applying, they might deter them.
The beauty of this type of scoring is in its simplicity. One question can be asked quickly in regular pulse surveys that show a measure of change over a short amount of time. It can also be easily broken down by department or team, so that you can potentially identify which areas of the business (or leaders) are affecting engagement for good or bad.
3. Supervisor Satisfaction
Speaking of leadership, managers can have a massive effect on employee engagement. One out of every two surveyed professionals reports leaving a job to “get away” from a bad boss. Conversely, a good boss can make his or her team more productive, satisfied, and loyal.
But how do you measure supervisor satisfaction? Reporting a poor manager can be a frightening experience — making the reporter feel at risk of repercussions. That’s why a qualitative look is the best way to go. It not only creates a safe way to gather information, but removes potential bias from the situation as well.
First, look at both retention rates and promotion rates from a particular manager’s department. High rates of turnover may be an indicator that something isn’t right, while high rates of promotion indicate that leadership in that department is helping employees grow. Then, use the same survey measures discussed above to break the data down by department. You can go a step further by asking employees this question: How likely are you to recommend your manager as a person to work for to a friend?
Finally, be sure to use your engagement software to set baseline goals for employee engagement based on the entire company’s data. From there, you can segment by department and manager and figure out which groups are above the baseline and doing well, and which are below and may require additional attention.
4. Goal Performance
Research into human psychology indicates that goal setting helps increase feelings of autonomy, connectedness, and competence that ultimately leads to personal happiness. Further, from a business perspective, setting and achieving goals is crucial to growing your business.
Goal performance and employee engagement are directly correlated, so measuring the former can help provide insight into your employees’ state of mind. First, you’ll want to measure overall goal achievement. Part of setting goals is failing to meet some of them, so if your organization is at a 100% success rate, you may be setting your sights too low. A good number to track against is 60-80% achievement.
Furthermore, you’ll want to set and measure some goals that are a stretch. Creating high standards for employees to strive for drives healthy competition and development. Track the progress and milestones towards those moonshot goals, and don’t forget to praise and recognize employees along the way.
Simply tracking KPIs for employee engagement isn’t enough. Once you start measuring this critical business metric, you need to take action. Start by tracking your engagement workflows and major milestones in a project management tool (check out TechnologyAdvice for project management recommendations based on your needs) that lets HR and C-level stakeholders provide insight and feedback. Use the information you’ve gathered to define a strategy for improving engagement, measure success along as you roll out the strategy, and be prepared to innovate along the way.
To learn more, download Achievers’ e-book, "Employee Engagement: Four Places to Start Measuring What Matters."
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