A way to evaluate how well a business is fulfilling its goals and quantifying employee engagement is by using key performance indicators (KPIs) for employee engagement. KPIs are used in various corporate contexts in measuring employee engagement and assessing achievement. There are two types of KPIs: high-level and low-level.
Employee Satisfaction
While employee satisfaction is a common KPI in HR, determining how it relates to your business is more complex. While high employee satisfaction is essential for a happy workforce, low employee satisfaction leads to high employee turnover. This is especially true in the current job market, where retaining talent is difficult. A recent Joblist study found that 73% of workers actively consider leaving their current job. Several ways to measure employee satisfaction include asking employees about their experiences and analyzing reviews on online review sites.
The key to measuring employee satisfaction is understanding why employees are happy at work. A survey can help you understand these issues and pinpoint areas for improvement. A survey showing a high level of employee satisfaction can help you develop a more engaging work culture. However, it’s important to remember that employee satisfaction depends on many factors.
Another employee engagement KPI is customer satisfaction. Highly engaged workers are more willing to go the extra mile for customers, which benefits the business in various ways. For example, engaged employees are 21% more productive than disengaged workers. Productivity can be measured in multiple ways, including direct measures like revenue and net promoter scores.
Employee Net Promoter Score
The Employee Net Promoter Score is a simple way to gauge the satisfaction of your employees. This score is based on a 0 to 10 scale, and you can use it to improve your employee engagement. However, this measurement has many limitations. If your employee satisfaction scores are low, you may need more to improve your overall company satisfaction.
Employee Net Promoter Score is not a substitute for other employee engagement measures. While this metric can help businesses measure and improve employee engagement, it does not measure commitment, role satisfaction, or satisfaction with the company. Rather, it can be used to track changes in employee engagement over time.
Employee Net Promoter Score surveys should be conducted periodically. However, combining this survey with an engagement survey is important to obtain a comprehensive picture of your company’s culture. By conducting both, you’ll understand how your employees feel about the company.
Internal Promotion Rate
One of the best ways to increase employee engagement is to provide them with professional growth opportunities. A company’s internal promotion rate is an important KPI to track. This metric is calculated by taking the total number of promotions in a given period and dividing it by the number of employees. The result is the percentage of promoted employees within that period.
An employee satisfaction index measures employee satisfaction and can be used with other employee engagement metrics. Employee satisfaction index scores can be expressed for a company’s overall workforce or by division, department, or work unit. Scores of 70 or above are considered high, while those below 60 are considered low. Another way to improve employee engagement is to measure performance management. High-performing employees will consistently meet their goals, and tracking their progress can show whether they’re engaged in their work.
Using KPIs to track employee engagement can help managers determine what areas need improvement and what actions should be taken to improve employee engagement. By measuring these metrics, companies can create better workplaces, increase employee loyalty, and improve the performance of their teams. Employee engagement is critical to a company’s success.
Productivity
Productivity is an important KPI to measure employee engagement. A productive employee will do their work as efficiently as possible, consuming as little time, effort, and resources as possible. Employee efficiency can be measured in different ways, including the number of trouble tickets filed and the time it takes to complete standard tasks.
Another important KPI to measure employee engagement is absenteeism. An engaged employee wants to be at work, as they feel a sense of purpose and commitment. Engaged employees are 21% more productive than disengaged employees. While productivity can be measured in various ways, such as revenue, absenteeism, and turnover, it’s crucial to prioritize employee engagement.
Another way to measure employee engagement is the employee turnover rate. A high turnover rate indicates employees are not satisfied with their work. This makes it hard to retain good employees, especially in today’s job market.