EMPLOYEE ENGAGEMENT MEASUREMENT

 

EMPLOYEE ENGAGEMENT MEASUREMENT

 

There are things that can be easily measured like height, weight, temperature, speed, glasses of water you drink, miles you run each day. Things that are hard to measure as 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.

              

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 un-satisfaction. There may be single or various reasons for their un-satisfaction. 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.

 

 

(Vulpen, 2022)

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.

                                                                                (Vulpen, 2022)

Due to various reasons employee absenteeism can be occurred. Poor working conditions of a company, weak leadership, overloaded work, mental harassments and co-worker issue are some reasons. High absenteeism of a company shows the company has a major HR issue.

 

04] Employee Net Promoter Score (e-NPs)

 Employee net promoter score is commonly used HR tool to calculate employee engagement of a company. The main question asked to calculate e NPS is “How could you rate your company to your friend as a great place to work?”

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.

 

 

    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.

 

 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)           

  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 profitablemore 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.

 

 

10] UWES and Gallup Scales

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.

 

References:

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 15 Nov. 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 15 Nov. 2023].

AIHR. (2021). 5 Useful Employee Satisfaction Metrics to Track. [online] Available at: https://www.aihr.com/blog/employee-satisfaction-metrics/ [Accessed 15 Nov. 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 15 Nov. 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 15 /nov. 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 15 Nov. 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 15 Nov. 2023].