10 employee engagement metrics you should be tracking in 2024

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Maintaining employee engagement is crucial for the success and stability of a company. Employees who are interested in their jobs are more likely to be efficient and less likely to quit, which is good for the business. Here’s a comprehensive guide to the key employee engagement metrics every organization should track, complete with current statistics and formulas for calculation.

1. Employee net promoter score (eNPS)

The Employee Net Promoter Score is a staple metric used to gauge overall employee satisfaction and loyalty by asking employees how likely they are to recommend the organization as a place to work. Studies show that businesses that have happy workers usually do better than those that don’t.

This is a common eNPS question: “On a scale from 0 to 10, how likely are you to recommend our company as a place to work?” A detractor gets a score of 0–6, a passive gets a score of 7-8, and a supporter gets a score of 9–10. The eNPS is found by taking the percentage of Detractors away from the percentage of Promoters.

You could add more questions to your eNPS surveys, like 

• “What does the company do that makes you want to recommend working here?”
• “Can you suggest one thing that would make you more likely to recommend working here?”
• “What aspects of your job make you proud to work at this company?”
• “Are there any company policies or practices that might prevent you from recommending us?”
• “How supportive is the company in helping you balance your work and personal life?”

By asking more specific questions, you can learn more about the factors that motivate your staff to offer improvements for the workplace and identify areas that require attention.

2. Employee retention rate

Employee retention is a vital indicator of an organization’s happiness and health because it reveals how many people stay over a certain period of time. Studies show that it can cost between 6 and 9 months’ pay to hire a new employee. This shows how important it is to understand and improve employee retention to lower these big costs.

The formula for calculating the retention rate is: 

Managing and improving employee retention reduces operating expenses and stabilizes the staff, which improves teamwork and operations.

3. Voluntary turnover rate

The voluntary turnover rate shows how many workers quit. If many people are quitting, it may be because they dislike their jobs, wages, culture, or bosses. These difficulties must be resolved for the company.

To calculate the voluntary turnover rate, follow these steps:

• Identify the total number of voluntary leaves: Count all employees who left voluntarily during the specified period.
• Determine the total number of employees: Find the number of employees at the start of the period or use an average if the workforce size fluctuates significantly.
• Apply the formula: Use the following formula to calculate the rate: 

This calculation gives a clear percentage that shows how many employees are leaving the company. This helps to find trends and places where strategies for keeping workers can be improved.

4. Absenteeism rate

The American Psychological Association (APA) defines absenteeism as unjustified absences from work, particularly when they are frequent or persistent. Justified absences, on the other hand, include planned leaves, paid time off, vacations, holidays, real illnesses, medical visits, and unplanned events like car accidents, childcare problems, or family illnesses.

The formula for calculating the absenteeism rate is: 

The US Bureau of Labor Statistics found that 2.1% of workers missed work on average each year in 2023. The rate in the private sector was 2.0%, which was a little lower than the rate in the state sector, which was 2.6%. In Europe, rates are usually between 3% and 6%. This is because more people are in unions and there are stricter social security rules that protect workers more.

High absenteeism rates often signal underlying issues such as:

• Fear
• Stress
• Burnout
• Disengagement
• Dissatisfaction
• Depression or anxiety
• Poor or lack of sleep
• Chronic health issues

Getting to the bottom of these issues is necessary to cut down on absences and boost employee health and happiness in general.

5. Employee productivity metrics

It’s crucial to monitor staff output to determine productivity. These metrics show your output versus your employees’ productivity.

 Common productivity metrics include:

• Output Per Employee:This statistic calculates total production, which could be units, jobs, or money, divided by employees. It shows average employee productivity. The formula for calculating Output Per Employee is: 

• Revenue per employee: This is another important productivity measure that helps you figure out how much money every employee brings in for the business. To figure it out, divide the company’s total income by the number of employees.

Employee productivity measurement tools

A lot of the time, companies use tools and software made to track and examine employee performance to accurately measure these productivity metrics. These are some of the most-used tools:

• Time tracking software: Tools like Time Doctor can keep track of how long employees spend on various tasks. This shows where time is being wasted and helps find ways to make things run more smoothly.
• Project management tools: Asana, Trello, and Monday.com are project management tools that help teams track deadlines, project progress, and task completion.
• Performance management systems: BambooHR and Performance Pro evaluate and track performance over time. This ensures that every employee’s job meets organizational goals.
• Analytics and reporting tools:  Tableau and Power BI can show you productivity data like staff hours and income to help you make better decisions and gain deeper insights.

These technologies not only aid in output measurement but also in problem solving, performance evaluation, and ensuring that individual contributions align with the organization’s strategic objectives.

6. Employee satisfaction index

This statistic evaluates a number of components of an employee’s job satisfaction using surveys that ask about possibilities for professional progress, connections with coworkers, and workload. It offers a thorough picture of everyone in the company’s general level of job satisfaction.

The process of calculating the Employee happiness Index (ESI) usually entails combining the answers to a set of survey questions concerning many facets of job happiness, like professional development possibilities, relationships with coworkers, and workload. 

Formula to calculate ESI:

• Assign scores to survey responses: Each response in the survey is assigned a numerical score. For example, on a Likert scale from 1 to 5, ‘1’ might represent ‘very dissatisfied’ and ‘5’ might represent ‘very satisfied’.
• Calculate the average score for each question: For each question, calculate the average score based on the responses. This is done by summing all the scores for a particular question and dividing by the number of respondents:

• Aggregate the averages: Sum the average scores of all the questions to get a total score.
• Normalize the score (if necessary): To make the ESI easier to interpret, you might want to normalize it on a scale, such as 0 to 100. This can be done by adjusting the formula based on the highest possible score:

• Interpret the result: A higher ESI score indicates higher employee satisfaction. Organizations may set benchmarks or targets for the ESI to gauge improvements or declines in employee satisfaction over time.

This method provides a numerical assessment of employee satisfaction across multiple aspects of their work life, offering insightful data to HR and management to address areas of concern or maintain successful practices.

7. Learning and development participation

Employee engagement and the company’s commitment to employee growth can be determined by learning and development program participation. The percentage of employees who attend training sessions annually could be measured here

Learning and development (L&D) participation significantly enhances employee engagement by:

• Boosting morale: Company investments in personal and professional growth make employees feel valued and appreciated.
• Enhancing skill sets: Continuous learning keeps personnel up to date on industry trends and practices, improving their productivity.
• Increasing job satisfaction: L&D programs help employees apply new skills and knowledge, making their jobs more enjoyable.
• Promoting internal mobility: Training and development help employees improve their careers, keeping them interested and reducing turnover.
• Fostering innovation: Well-trained individuals are more inclined to propose new ideas, which can energize their teams and the company.
• Encouraging ownership: Training people to take on new challenges typically increases their ownership and accountability for their job and results.

Companies can boost employee engagement and create a more dynamic, skilled, and engaged staff by prioritizing L&D.

8. Recognition frequency

Recognition of employee accomplishments is essential for workplace morale and engagement. In the 6th annual AWI 2023 Engagement and Retention Report, employees cited meaningful recognition as the top factor in strengthening work relationships. 

Here are several ways that frequent and meaningful recognition benefits employee engagement:

• Enhances motivation: Recognizing employees’ efforts and accomplishments might motivate them to do better.
• Builds emotional connections:  Recognizing employees strengthens their emotional connection to their team and the company, creating loyalty and belonging.
• Encourages repeated success: Recognition reinforces employees to continue the good conduct and abilities that earned it.
• Improves job satisfaction: Recognized employees are happier at work, which reduces turnover and boosts corporate loyalty.
• Promotes a culture of appreciation: A recognition-rich workplace values and recognizes all employees’ contributions.
• Supports transparency and trust: Open appreciation of accomplishments can boost transparency and trust in the business by showing employees that their efforts are adequately rewarded.

A systematic method to tracking and celebrating achievements recognizes individual efforts and connects them with the organization’s goals, improving engagement and productivity.

9. Workload balance

Workload balance is crucial for measuring employee engagement and job satisfaction. It measures whether employees feel the workload is manageable, which is essential for productivity without burnout.

Measuring workload balance

• Employee surveys: Ask employees often how satisfied they are with their work. Like “How manageable do you find your workload?” & “Do you feel that work demands interfere with your personal life?”
• Performance data: Check performance metrics like missed deadlines and excessive overtime rates for signs of an imbalanced workload.
• Manager assessments: Encourage managers to routinely evaluate and adjust team members’ workloads.

Organisations need engaged and productive employees to succeed and maintain a healthy workplace. Tracking and controlling employee workload balance can do this. Balanced workloads are also important for attracting and maintaining top personnel, as more professionals are looking for workplaces that appreciate their personal life and leisure time.

10. Peer recognition scores

Peer Recognition Scores place more emphasis on the appreciation and acknowledgment that employees receive from one another than from their superiors. This figure is essential for encouraging a cooperative and encouraging work atmosphere since it encourages staff members to recognize the achievements and contributions of one another.

Measuring peer recognition scores

• Recognition tracking systems: Establish procedures that let staff members formally recognize their colleagues. Examples of these systems include digital platforms that let users give each other “kudos” or “shout-outs.”
• Frequency analysis: Analyze the frequency with which employees award and receive acknowledgement. A high frequency may be a sign of a robust peer-appreciation culture.
• Qualitative feedback: Gather information about how respected and acknowledged employees feel by their peers by conducting surveys or interviews.

Conclusion

Monitoring these metrics reveals areas that may need work and provides insightful information about how engaged your staff are. Organizations may lower attrition rates, increase worker satisfaction, and create a happier, more productive workplace by consistently observing and resolving these issues. By putting these strategies into practice, your company may leverage the difficulty of sustaining employee engagement as a competitive advantage.