Employee Engagement Metrics to Track at Your Organization

employee engagement metrics

Employee engagement is a crucial aspect of any organization's success. It refers to employees' emotional and mental connection to their work and workplace. Engaged employees are more productive, motivated, and committed to their work, which ultimately benefits the organization as a whole. 

To understand and improve employee engagement, organizations must measure it through various employee engagement metrics. This article will explore some of the key employee engagement metrics and how they can be used to create a more positive and productive workplace culture.

Importance of Employee Engagement Metrics

Employee engagement is a crucial metric in any organization, and its importance is only growing as the workplace evolves. Companies with high levels of employee engagement are shown to have greater productivity, lower turnover, higher customer satisfaction, and improved financial outcomes. Recent research suggests that nearly 50% employees are planning to quit their jobs within the next two years, leading to the urgent need for companies to take proactive steps to measure and improve employee engagement kpis (key performance indicators). 

Statistics show that organizations with a highly engaged workforce have a 22% higher profitability rate, a 20% higher productivity rate, 28% less employee turnover rates, and 37% higher customer satisfaction rates. Additionally, organizations with low employee engagement experience almost three times the amount of absenteeism and two-thirds more errors and defects. 

These figures make clear the importance of employee engagement metrics and demonstrate why companies must prioritize and increase employee engagement. They are not just beneficial for employee satisfaction but also for the bottom line and the entire organization. Companies that invest in understanding their hr employee engagement metrics, and act to improve them, will be rewarded with greater profitability, productivity, customer satisfaction, and employee resilience and retention.

Metrics to Measure Employee Engagement

Employee engagement metrics are essential for any organization to understand how employees feel and what they need from their workplace. Here are 11 key metrics to consider when measuring employee engagement for professional development:

Employee retention rate

Employee retention rate measures the percentage of employees who stay with a company over a certain period. High retention rates indicate that employees are engaged and satisfied with their work and the company culture, as they are less likely to leave for other opportunities. On the other hand, low retention rates may indicate that employees are disengaged and dissatisfied, leading to a high turnover rate. 

However, external factors such as market conditions, compensation, and job availability can influence the employee retention rate. The retention rate should be monitored and reviewed to track changes over time and determine if any interventions or changes in company policies are needed to improve it. To measure employee engagement using retention rate, you can follow these steps:

  • Define the period for the calculation: for example, a year, six months, or a quarter.
  • Determine the total number of employees at the start of the period: for example, the total headcount of your company.
  • Count the number of employees who leave the company during the period: this can be done by reviewing HR records, exit interviews, or other data sources.
  • Calculate the retention rate: divide the number of employees who remained with the company at the end of the period by the total number of employees at the start of the period and multiply by 100 to get a percentage.
  • Compare the calculated rate to industry benchmarks and your company's past results to determine if it's high or low.

Employee turnover rate

Employee turnover rate is a common metric used to measure employee engagement. It is the percentage of employees who leave the company in a given time period, usually one year. A high employee turnover rate may indicate low employee engagement, as it suggests that poor employee satisfaction in their work experience and are leaving the company in search of better opportunities elsewhere. On the other hand, a low employee turnover rate can indicate highly engaged employees, as they are satisfied with their work and are more likely to stay with the company. However, it's important to keep in mind that employee turnover rate can also be influenced by factors such as job market conditions and competitive compensation.

To calculate the employee engagement turnover rate, you need to first determine the number of employees who left the company in a specific period of time (e.g. one year) and divide that number by the average number of employees over that same period. The formula for this calculation is as follows:

  • Turnover Rate = (Number of employees who left the company in a specific period / Average number of employees over that same period) * 100

For example, if 100 employees left the company in a year and the average number of employees over that year was 1000, the turnover rate would be 10%:

  • Turnover Rate = (100 / 1000) * 100 = 10%

It's important to note that this calculation should be done consistently over time to track changes in the turnover rate and to identify trends or patterns in employee engagement and turnover.

Employee recognition and rewards programs

Recognition and rewards programs can be a valuable metric to measure employee engagement as they directly impact how employees feel valued and appreciated. If employees feel recognized and rewarded for their hard work and contributions, job satisfaction, motivation, and a sense of belonging within the company can be increased. To measure the impact of employee rewards and recognition programs on key engaged metrics, you can gather data through:

  • Employee engagement surveys: Ask employees about their experience with the recognition and rewards program and how it has impacted their engagement.
  • Participation and usage rates: Track the number of employees participating in the recognition and rewards program and the frequency of usage.
  • Feedback: Gather feedback from managers and employees to understand how they perceive the recognition and rewards program and if they feel it is fair and effective.
  • Impact on engagement metrics: Track changes in other engagement metrics, such as job satisfaction, productivity, employee wellbeing and turnover rate, to determine if the recognition and rewards program is improving engagement.

Overall, employee recognition and rewards programs can provide valuable insights into improving engagement metrics and can be combined with other metrics such as employee wellbeing to understand the essential employee engagement metrics within a company comprehensively.

Employee performance evaluation scores

Performance evaluation scores can be a valuable method of measuring employee engagement metrics, as they objectively assess an employee's job performance. High performance evaluation scores indicate an engaged workforce, focused on their work and meeting expectations. In contrast, low scores may indicate employee disengagement or they are struggling to perform their duties effectively. Progressive employers rely on these evaluation scores to determine staff members who need more professional development opportunities. To use performance evaluation scores as a metric to track engagement, consider the following steps:

  • Establish clear and measurable performance objectives: This will ensure that the performance evaluations are fair and consistent across all employees level.
  • Conduct regular evaluations: Regular performance evaluations allow for ongoing employee feedback and an opportunity for them to learn and improve their performance.
  • Use a standard evaluation process: Having a standard process for performance evaluations ensures that all employees are evaluated consistently and that the scores are comparable.
  • Track changes in scores over time: Measuring changes in employee performance evaluation scores over time can provide insight into employee morale and areas for improvement.

Goal attainment and productivity levels

Goal attainment and productivity levels such as customer happiness can provide valuable insights into employee engagement, as they demonstrate that employees are motivated, focused, and contributing to company's vision, company values and success. As part of a larger engagement strategy, it should be used in combination with other metrics. To use goal attainment and productivity levels as a metric to measure engagement, consider the following steps:

  • Set clear, measurable goals: Ensure that employees have clear and quantifiable goals aligned with the company's overall objectives.
  • Track progress towards goals: Regularly track progress towards goals and provide feedback to employees on their progress as part of their career development.
  • Measure productivity levels: Use tools such as time-tracking software or productivity metrics to measure the amount of work completed by employees.
  • Compare with previous periods: Compare current goal attainment and productivity levels with previous periods to determine if they are improving or declining.

Employee referrals

Employee Net Promoter Score (employee NPS) is a metric used to measure employee engagement by asking employees how likely they are to recommend their workplace to others. It is based on a single question, usually on a scale of 0-10, where employees are asked to rate their likelihood of recommending their workplace to a friend or colleague. To use eNPS as a metric for employee engagement, consider the following steps:

  • Employee engagement surveys: Administer the eNPS survey to employees and ask them to rate their likelihood of recommending their work to others. You could offer different engangement survey such as annual surveys and pulse surveys to determine the highest engaged employees.
  • Calculate the score: The employee net promoter score is calculated by subtracting the percentage of employees who are detractors (score 0-6) from the percentage who are promoters (score 9-10).
  • Track changes over time: Human resources should regularly administer the employee net promoter score survey and track changes in the score over time to better understand employee engagement levels.
  • Compare with industry benchmarks: Compare the employee net promoter score with industry benchmarks to determine if it is higher or lower than average.
  • Use eNPS in combination with other metrics: eNPS should be used with other metrics, such as employee satisfaction surveys and employee performance evaluations, to understand employee engagement levels comprehensively.

High employee absenteeism

Absenteeism measures the number of unscheduled absences from work and can be used as a metric to gauge employee engagement. Habitual workplace absence can indicate low engagement and job dissatisfaction among employees, while low levels suggest high employee engagement and a positive work environment. However, it's important to note that other factors, such as personal circumstances or health issues, could contribute to absenteeism, so this metric should be considered alongside other indicators of employee engagement. To measure employee absenteeism rate, you can use the following steps:

  • Calculate the number of absences: Track the number of unscheduled absences for each employee during the measurement period.
  • Determine the number of scheduled work hours: Calculate the number of expected work hours for all employees during the measurement period.
  • Calculate the absenteeism rate: Divide the number of absences by the number of scheduled work hours and multiply by 100 to get the absenteeism rate as a percentage.
  • Analyze the results: Compare the absenteeism rate to your organization's benchmark or industry average and look for trends over time to identify any patterns.


Key engagement metrics are essential tools for any organization's success and should be measured and improved regularly. Companies should invest in understanding their employee engagement levels and take active steps to improve them to reap the rewards of increased productivity, lower turnover, and improved financial outcomes. 

When it comes to engaged employee, companies that invest in their people will be rewarded with greater success. That being said, collecting and analyzing this data can be complex and time-consuming, but it doesn't have to be. Shiftbase offers an innovative solution that streamlines the employee engagement measurement process, making it easier for business leaders to focus on what matters most: their employees.

So, if you're looking to improve employee engagement and drive success within your organization, consider giving Shiftbase a try for free.

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