Identifying KPIs within your organization is key for continuous improvement. And while sales growth, customer retention, and profit margins are all things that you want to carefully monitor, employee engagement is a metric that can impact your bottom line in a big way.
Understanding how your employees truly feel about their work at all times is no small task, so we’ve identified four key metrics that you can track to get a more clear picture of your overall employee engagement.
To calculate your company’s turnover rate, you need to divide the number of employees who left during a specific period of time by the number of employees at the beginning added to the number of employees at the end of the specific period divided by two. Afterwards, you need to multiply this number by one hundred to get the percentage value of your turnover rate. Once you understand your baseline, you can set SMART goals to improve it.
While employees are expected to take some time off, constantly missing work can be a sign that someone is disengaged. One way to calculate your organization’s absenteeism rate is to divide the number of absences from work that are unexcused during a specific period of time by the number of workdays in that specific time frame and multiply it by one hundred. To ensure that your engagement initiatives are creating a positive impact on your organization, similarly to the turnover rate metric, your initiatives should decrease your absenteeism rate.
How productivity is tracked can change drastically from company to company. Gather key stakeholders and identify which productivity metrics matter most to your company. Remember to only select a handful in order to keep things simple. Some ways to measure productivity include tracking employee our team output, relying on peer assessments, or setting specific milestones in the project management tool of your choice.
Employee Net Promoter Score
Adapted from the Net Promoter Score, which was developed to measure customer loyalty, the Employee Net Promoter Score paints an extremely simplistic image of overall employee satisfaction. The eNPS asks the following question, which participants respond to by rating from 0-10:
How likely are you to recommend us as a place to work for your family and friends?
Depending on their score, participants are either grouped as detractors, passives, or promoters. This grouping method gives a general indication of their engagement.
As with all metrics, keeping all data organized and being open to changing what you track along the way is key to monitoring and improving performance. If you would like a hands-free way to improve your employee engagement within your company, contact us to get started on your custom experience gift set.