Why It's Essential to Measure Employee Engagement
Sorwe
"Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability."
Anne M. Mulcahy, former CEO of Xerox
It's essential to measure employee engagement because it reveals whether your workforce feels valued, motivated, and committed — and it's the first step toward improving retention, productivity, and company culture.
There are many challenges facing the world right now, and although it may feel trivial, the fight for talent continues as the great resignation shows no sign of stopping. Less than six months ago, almost 69% of UK workers said they felt confident to move jobs, and only 16% were worried about getting a new job. Employers must therefore challenge turnover by assessing and improving employee engagement and showing that they care about their people. But how do you effectively measure employee engagement, and what tools should you use for optimal results?
This blog will include:
Why is it important to measure employee engagement?
Why is employee engagement important to HR?
How to measure employee engagement KPIs?
The importance of recognition in engagement?
How to measure employee engagement without a survey?
Involve every employee when you measure employee engagement
How to measure employee engagement using Sorwe?
Why is it important to measure employee engagement?
There are many reasons to measure employee engagement in your workforce, including:
- Retention – the happier your people and the more engaged they are with the company and their work, the more likely they are to stay. While employees may always be tempted by money or other offers, they should be more loyal and less likely to leave when highly engaged.
- Cost savings – high turnover costs time and money, since replacing skilled employees is expensive in recruitment, onboarding, and training. In addition, engaged employees increase productivity, which should also increase profits.
- Workload – as productivity, motivation, and engagement improve, HR teams spend less time on underperformance, disciplinaries, and replacement recruitment — freeing time for other priorities.
- Productivity – highly engaged employees have 21% higher profitability and 17% higher productivity than those not engaged. Motivated people who understand business objectives typically drive better customer service, quality, and output.
- Reputation – happy, engaged employees improve your company's reputation. They may recommend your company as a great workplace, talk positively on LinkedIn, and boost your employer brand through word of mouth.
Why is employee engagement important to HR?
Strong engagement increases commitment and retention while saving HR time on recruitment, onboarding, performance management, and managing exits.
If you can identify which areas of the business are less motivated and engaged, you gain foresight into which roles and departments may be at risk of turnover. This supports workforce planning and lets you dig into the reasons for disengagement.
Engagement data may also highlight areas needing training and development. For example, if teams cite management discontentment, you may need a leadership training plan. You might also uncover honest views about pay and benefits that prompt a review of your reward structure.
Essentially, this visibility gives you insights you wouldn't otherwise have, allowing you to plan your people strategy around what your people actually want, rather than guessing.
How to measure employee engagement KPIs
Before measuring employee engagement, define your KPIs (key performance indicators), as these vary by business. Leadership should decide what to measure and how.
Establishing KPIs early matters because measurement methods differ. For example, employee records and exit interviews can track turnover or absenteeism, while a survey to find out more about job satisfaction may be needed for other insights. Your KPIs may include measuring employee:
- Productivity
- Wellness
- Promotions
- Absenteeism
- Satisfaction
- Turnover
- Recruitment
The importance of recognition in engagement
Recognition is vital to achieving employee engagement. Great Place to Work reviewed over 1.7 million employee survey responses over two years and found that recognition played an essential part in engaging employees. Employees who felt recognised at work were twice as likely to say colleagues were willing to go above and beyond their roles, and 2.6 times more likely to view promotions as fair.
Employees who didn't feel recognised struggled to describe what made their workplace great, while those who felt recognised responded more positively across the survey.
How to measure employee engagement without a survey?
Surveys are the obvious solution, and they're hugely beneficial when done well, but there are other ways to measure engagement in your workforce.
Rewarding and promoting high performers is one option, though financial rewards aren't always feasible. Feedback can be equally powerful for improving recognition and engagement. Options include:
Team meetings – managers could highlight one thing done well each week, acknowledging individual and team contributions, and ask employees what went well and what could improve.
Employee 1:1s – managers can highlight something the employee did well and ask for feedback on their week.
All staff meetings – held by senior leadership, these are an open way to share feedback on company changes or achievements.
Internal recognition systems – letting employees vote for colleagues' good work is another effective form of feedback and recognition.
Focus groups – select participants from different departments and levels, and use neutral facilitators so people feel comfortable being honest. Use survey responses as discussion starters, and ask questions about recognition, growth opportunities, and how valued employees feel.
Involve every employee when you measure employee engagement
The hybrid working model looks set to stay, bringing a challenge to observe and listen to all your people. Just because someone isn't visible in the workplace doesn't mean they shouldn't be heard — this matters for accurate engagement measurement. Regardless of where someone is based, their voice needs to count.
How to measure employee engagement using Sorwe
Sorwe offers the technology to collect all people's experiences in one place so you can analyse data and gain a clear picture of employee engagement. This clarity helps you build a culture of engaged, motivated, happy people. Our tools measure, assess, and enhance:
The pandemic has changed how we work and the role work plays in our lives, leaving employers with several challenges. They must consider how hybrid working fits their culture while working harder to retain people who may be questioning what they want from their job. Employee engagement must be measured regularly using multiple methods, but that's only the first step — feedback must be listened to and acted upon. Measuring and improving engagement needs to be a continuous cycle embedded in your culture.
Sorwe provides the tools you need to assess, evaluate, and improve employee engagement. Get in touch with us to learn more about how Sorwe solutions can help you improve your employee engagement practices.
Frequently Asked Questions
Why is it essential to measure employee engagement?
Measuring employee engagement helps improve retention, cut recruitment costs, boost productivity, reduce HR workload, and strengthen company reputation.
What KPIs should be used to measure employee engagement?
Common KPIs include productivity, wellness, promotions, absenteeism, satisfaction, turnover, and recruitment data.
Can employee engagement be measured without a survey?
Yes, through team meetings, 1:1s, all-staff meetings, internal recognition systems, and focus groups.
Why is recognition important for engagement?
Recognition strengthens engagement; recognised employees are more likely to go above and beyond and view promotions as fair.
How does Sorwe help measure employee engagement?
Sorwe centralises feedback, communication, and performance data to give a clear, continuous picture of employee engagement.
