12 metrics employers are using today to measure employee engagement
This story originally appeared on Nextiva and was produced and distributed in partnership with Stacker Studio.
12 metrics employers are using today to measure employee engagement
Modern companies understand that engaged employees—those who feel a positive mental and emotional connection to their work, their teams, and their organization—build better office cultures and yield higher performance.
Employers can improve employee engagement by offering rewards like raises and promotions for excellent work. Efforts to make employees feel heard and valued also help keep workers connected to each other and the company. Sending inconsistent messaging about core company values or building one-way, top-down internal communications can easily hinder these efforts, and leave employees feeling disconnected or disregarded.
The Gallup polling company surveys companies around the world and honors those whose employees are the most engaged with a Gallup Exceptional Workplace Award. At top organizations, about 71% of employees are engaged—far above the 15% global average engagement level and the 35% average in the U.S.
ABC Supply, a Wisconsin-based building supply company with more than 17,000 employees, is one of just two companies that have won Gallup's award every year since it was created in 2007. The company says its employees' engagement is crucial to its growth and success.
Building a strong and engaged workplace culture takes work and often starts with clear and open lines of communication between leadership and employees. To help better understand employee perspectives, Nextiva examined Gallup's Q12 Employee Engagement Survey and identified some of the measures that people use to determine their satisfaction and engagement with their jobs—whether working in person, hybrid, or fully remote.
#1. I know what is expected of me at work.
- Foundational level: Basic needs
According to Gallup's survey, just half of all employees globally understand what their employers expect of them at their workplace, and how their performance helps co-workers and the organization as a whole. Gallup's survey shows that organizations that can boost the ratio of employees who understand what is expected of them at work to 80% can cut employee turnover by 22%, reduce safety incidents by 29%, and enhance productivity by 10%.
#2. I have the materials and equipment I need to do my work right.
- Foundational level: Basic needs
Employees who don't have what they need to do their work cannot be productive. It's common to associate employees' needs with tools or equipment. But workers also have less tangible needs, like access to information that makes it easier to get work done.
Surveys show that one in three employees globally agree they have what they need to do their job. Organizations that can double that ratio could potentially see an 11% increase in profitability. Equipping employees with their basic needs can reduce safety incidents by 35% and improve their output by 28%. Managers cannot simply assume they understand what their teams need; they must find out what people need to do their work effectively.
#3. At work, I have the opportunity to do what I do best every day.
- Foundational level: Individual contribution
Most workplaces include a wide range of people with different personal and work-related strengths, skills, and abilities. Employers who let employees use those talents can help them feel fulfilled and give them a sense of purpose while also improving productivity and attracting and retaining other great workers.
Gallup's survey revealed that approximately 33% of workers strongly agree across the globe that they have the chance to do what they do best each day. Employers who create an environment where employees can leverage their skills could increase customer engagement scores by 6% and profitability by 11%. Furthermore, doubling this ratio can cut turnovers down by 30% and reduce safety incidents by 36%.
Exceptional managers get to know their team members personally and allow them to showcase their unique value through their work.
#4. In the last seven days, I have received recognition or praise for doing good work.
- Foundational level: Individual contribution
An essential part of employee engagement is ensuring that people feel valued. Employees who do not feel valued in their workplaces are much more likely to quit their jobs. Recognizing employees' good work also shows other employees what success looks like. Gallup's survey reveals that 25% of workers strongly agree that they had been commended or recognized for their hard work the previous week.
If employers can increase that ratio to 60%, quality would improve by 28%, absenteeism would decrease by 31%, and shrinkage would reduce by 12%. The best way to apply this strategy would be to create an environment rich in recognition, with multiple sources of appreciation.
#5. My supervisor, or someone at work, seems to care about me as a person.
- Foundational level: Individual contribution
Many employers try to avoid being perceived as "soft" by their employees. Still, at every level of an organization, employers need to regard their employees as the organization's backbone. People who feel cared for and valued are more likely to be innovative and take the initiative. Employees who feel connected to their organization also make great ambassadors for the workplace. Surveys show that 40% of employees strongly agree that their supervisor or colleague shows concern for them as a person.
Improving that ratio to 80% can do a world of good for any organization, which may see that improvement bring an 8% uptick in customer engagement scores, a 46% decrease in safety issues, and a 41% decrease in absenteeism.
The personal touch of showing someone you care about them cannot be manufactured. However, by increasing one-on-one interactions and acknowledging achievements, managers may create environments where employees feel safe and cared for at work.
#6. There is someone at work who encourages my development.
- Foundational level: Individual contribution
According to data from the Gallup survey, people leave jobs most frequently for lack of professional advancement chances. But it's not always the workers' fault. Some are ready to learn, grow, and have skills to move up but don't know how to navigate that phase of their careers.
Employers who provide guidance through mentoring, engagement, visibility, or task assignments are highly regarded and encourage higher levels of loyalty. The surveys show that 30% of employees strongly agree that a colleague at work supports their personal development. Organizations can see improvements in customer engagement ratings of 6%, profitability of 11%, and absenteeism reduction of 28% by raising this ratio to 60%.
Managers who can coach employees to learn, grow, and take on new challenges have better results, especially in retaining staff.
#7. At work, my opinions seem to count.
- Foundational level: Teamwork
Older work models often had managers who were expected to know it all. More modern management involves constant dialogue with colleagues to consider all options before deciding on the best course of action, and to ensure everyone's views are heard. Gallup data shows that 25% of employees feel listened to when expressing their opinions. It is possible for organizations to reduce turnover and safety incidents, and to enhance productivity by as much as 10% if they can double that ratio. Workers' input can identify new opportunities and help employees connect with each other and their managers.
#8. The mission or purpose of my company makes me feel my job is important.
- Foundational level: Teamwork
Everyone wants to know that their effort has a more significant meaning and that their job isn't just a job. A sense of purpose is a critical element in attracting and retaining staff. Global surveys revealed that about 33% of employees strongly agree that the direction and purpose of their organization made their jobs feel more critical.
If organizations focus on this metric and double this ratio, key performance metrics like absenteeism and patient safety could be improved. Additionally, this can translate to a 19% boost in work output. Good leaders identify ways to show every employee how their role fits and supports the organization's mission. In addition, opportunities for employees to share moments when they felt especially connected to the mission can inspire others and make the collective sense of purpose more concrete.
#9. My associates or fellow employees are committed to doing quality work.
- Foundational level: Teamwork
Interconnected modern workplaces require team members to depend on each other heavily to do their jobs. But a team is only as strong as its weakest member, and if people think a teammate doesn't share the same dedication, morale can tumble. According to a Gallup study, one-third of employees strongly believe that their co-workers are devoted to producing high-quality work. By simply doubling this ratio, businesses can trim turnover and absenteeism by 31%, raise profits by 12%, and enhance customer engagement ratings by 7%. A transparent system of accountability for individuals and the team can ensure clear performance measures and that everyone understands their interdependence.
#10. I have a best friend at work.
- Foundational level: Teamwork
When workers feel connected to their co-workers, they make better business judgments. According to surveys, 30% of workers firmly agree that they have the closest buddy at work. Organizations could experience 28% fewer safety incidents, 5% higher customer engagement scores, and 10% higher profit if that ratio increased to 60% or above. A relaxed environment created by excellent managers can foster workplace friendships.
#11. In the last six months, someone at work has talked to me about my progress.
- Foundational level: Growth
Career growth is significant to employees. Performance evaluations are vital—whether formal or informal—and can help align an employee's self-perception with their actual work performance. Discussing workers' strengths and weaknesses can help them feel understood and identify ways they can contribute more effectively. Gallup surveys reveal that one-third of employees worldwide strongly agree that a colleague at work has checked up on their progress in the last six months. By pushing this ratio to about 66%, organizations can materially see a 38% drop in safety incidents, a 28% reduction in absenteeism, and an 11% increase in profit.
#12. This last year, I have had opportunities at work to learn and grow.
- Foundational level: Growth
Constantly keeping workers learning is a great way to sustain employee motivation and momentum. People are more likely to stay in organizations where they feel forward motion in addition to personal and professional progress. According to studies, only 33% of employees strongly agree that they have the opportunity to learn and develop at work. The survey further revealed that by improving this ratio to 66%, organizations could see 39% lower absenteeism, a 36% reduction in safety incidents, and a 14% spike in productivity.
Encouraging employees to develop themselves makes the environment conducive to work. In this type of environment, employees don't feel the need to skip work, and productivity and profits increase. Offering employees opportunities to learn and grow through company programs or other forums helps keep them engaged and fulfilled.
