Eight Employee Engagement Metrics Your Business Should Consider in 2022
For any organization to succeed in its respective field, employee engagement plays a significant role. It is one of the critical factors that measure its culture and work satisfaction.
Today, apart from the job role, employees also look for other aspects, such as the company they work for, their assigned responsibilities, or the sense of belonging they feel at their workplace. According to the Global Human Capital Trends Survey, 93% of the respondents think that a sense of belonging in the workplace is crucial for organizational growth.
Although many companies are focusing on employee engagement as an integral part of their organizational culture, many businesses still do not recognize it. As per a survey report by Gallup, only 39% of workers seemed to be engaged in their respective companies in 2021.
So, what could be the possible reasons for low employee engagement in an organization?
A few factors I believe could be responsible are -?
More than ever, employee engagement is considered an internal strategic business objective. Business owners have also understood that it is necessary for employees’ long-term dedication and retention, leading to high productivity and top-notch results.
What exactly is Employee Engagement?
Source:https://www.freepik.com/free-vector/people-communicating-via-social-media_8271062.htm
Employee engagement is a form of emotional connection employees feel with their organizations that can affect their behavior, dedication, and level of effort in their respective companies.|
Engaged employees have a positive approach towards a company and its values. They are enthusiastic about their work and deliver their best for individual and company growth. For them, their job role is much more than just their paycheck. They are fully committed to the organization and perform their responsibilities with utmost passion. According to Smarp, companies with better employee engagement are 21% more profitable than others.
On the contrary, disengaged employees will always be dissatisfied with the company and its norms. They can never explain their issues to the management due to a lack of communication and coordination. As per a survey, 69% of employees said they would have worked harder if their employers appreciated them. Neither will they be motivated nor passionate about their job, and eventually, they will leave the organization on getting an offer from a company with better opportunities and employee engagement.
Benefits of Employee Engagement for a Business
8 Employee Engagement Metrics to Be Considered by a Business
Employee engagement metrics are used to measure how much your employees are engaged in your business. With these metrics, you can examine and understand the current status of employee engagement in your company and work on the areas that need improvements.
Voluntary Employee Turnover Rate
The more engaged employees are, the less likely they will voluntarily leave the organization. It can be calculated using the voluntary employee turnover rate. In simple words, the more satisfied an employee is, the less likely they will resign from their positions. However, as per a study by Smarp, 81% of the respondents said that they could consider quitting their current job on finding a good offer. Therefore, employee engagement is crucial so that this thought does not come into their minds.
?????????????????????????????????????????????????No. of employees who left voluntarily in a given period?
Voluntary Turnover Rate = ? ---------------------------------------------------------------- ? X 100
???????????????????????????????????????????????????????Total no. of employees in the same given period
Employee Retention Rate
Employee retention rate means how long an employee stays in an organization, which directly indicates their engagement. If the employee retention rate of your company is reasonable, it means they have a good understanding of your work culture and are compatible with it.
Employee Retention Rate =? ? Total no. of employees - Total no. of employees who left
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???????????????????????????????????????????????????----------------------------------------------------------------- X 100
???????????????????????????????????????????????????????????????????????????Total no. of employees
Absenteeism
Calculating the absenteeism rate can help you understand the employee engagement rate of your organization. As per a study, a company with better employee engagement helps improve the morale of its employees. As per a Gallup study, a highly engaged workplace observed 41% lower absenteeism .
?????????????????????????????????????????????????????????Number of absent days
Absenteeism Rate =? ? ----------------------------------------------------------------------
????????????????????????????????????????Number of available workdays in a given period
Employee Net promoter Score (eNPS)
eNPS is one of the critical HR metrics to calculate employee engagement. It is measured with the help of a rating scale that goes from 0 to 10 and asks employees how likely they are going to recommend it to their colleagues or friends? The responses can divide the eNPS into three categories:
eNPS = % of Promoters (9s and 10s) - % of Detractors (0s through 6s)
ROI on Employee Engagement
When the employees are more engaged, they bring more productivity, and hence there will be higher ROI. As per research, when a company prioritizes employee engagement, it can experience 20% more growth in sales and ROI.
Employee Performance Metrics
It is one of the direct indicators to understand employee engagement. When employees are well-engaged, they tend to perform well too. Therefore, employee performance metrics can be one of the most uncomplicated measures to understand employee engagement. It can be divided into four categories:
A company that focuses on employee engagement will recognize its employees’ work and address the issues that hinder their performance. Consequently, the employees will also focus on improving the quality, quantity, and efficiency of the job done.
Early Turnover Rate
The early turnover rate signifies how many employees leave an organization within the first year of their employment with that organization. If the early turnover rate is higher, there are some issues with the work-life balance, hiring standards, or job expectations of an employee in a company.
Involuntary Turnover Rate
Involuntary turnover means when a company lets go or terminates the employment of its employees when they repeatedly fail to meet their performance expectations. Although there might be issues with the employees that hinder them from achieving their targets, it is the company's responsibility to understand them and help them get through those barriers.
The management of a company can talk to their employees and understand their issues. Sometimes, they need a clear view and sound advice to improve themselves. Moreover, hiring new employees is both challenging and more expensive than retaining the existing ones. In fact, replacing an individual employee with a new one can cost you almost double the former employee's salary.
Takeaway
Engaged employees are the backbone of an organization. The more they feel engaged with the company’s culture, the greater their productivity. Consequently, they will perform well and devote themselves to achieving their goals and objectives. Therefore, it is crucial to consider an apt employment engagement metric to spot, analyze, and resolve the employees’ issues and enhance their experience within the organization.
Driving business success with STRATEGIC growth ??.....
2 年Measuring employee engagement is enhancing productivity. Another very important metric that needs equal attention is "Hiring metrics". It helps a lot in selecting candidates based on set criteria.