How To Measure Employee Engagement and the Technology That Makes It Possible

You can’t manage what you don’t measure. This is especially true when it comes to an employee engagement strategy in the workplace. Figuring out how to measure employee engagement should be a top priority on every HR leader’s list.

That’s because understanding and improving employee engagement is critical for success. Engaged employees are more productive, exhibit higher job satisfaction and contribute positively to the company culture. But without accurate measurement, engagement efforts can fall flat. How can you tell what’s working and what needs to be improved, if you’re not tracking?

Knowing how to measure employee engagement accurately and consistently is one part of the challenge. The other is leveraging the right HR technology to take theory into practice with accuracy and actionable insights. 

Here’s how you can gain deep insights into your employees' engagement levels and develop effective strategies to boost overall employee engagement metrics.

Influencing and Increasing Employee Engagement

Employee engagement is vital for every and all organizations, regardless of industry, because it directly impacts employee retention, productivity and happiness. An engaged employee is better able to contribute to overall company success. 

Over and over again, the research shows that highly engaged employees do better work. They’re more likely to stay with the company, reducing turnover and the associated costs of re-hiring. Employee absenteeism decreases and employee loyalty increases. In fact, Gallup has found that companies with high employee engagement are 21 percent more profitable. 

Factors Influencing Engagement

One of the tricky things about employee engagement is that there are so many factors that influence how engaged an employee is. The good news is that many of these can be directly impacted by HR and company policies. 

• Organizational culture: When employees align with the company's values and feel a sense of belonging, their engagement and loyalty increase. Plus, nurturing a culture that values diversity, equity and inclusion fosters an environment where employees feel valued and motivated.
• Leadership and management: Often, workplace engagement is fostered from the top down. In particular, strong manager-employee relationships are critical for engagement levels. Transparent communication, regular feedback and support for professional growth create a work environment where employees feel appreciated and empowered.
• Communication and feedback: Effective communication and regular feedback are essential for maintaining high levels of employee engagement. Open channels for communication help build trust and transparency, while consistent feedback leads to continuous improvements and a healthier company culture. This two-way communication fosters a more engaged and responsive workforce.
• Recognition and rewards: Implementing employee recognition programs that celebrate achievements and milestones boosts employee morale and motivation, leading to increased engagement and retention.
• Work-life balance: A healthy work-life balance prevents burnout and ensures that employees remain productive and engaged.

Traditional Methods of Measuring Employee Engagement

Measuring employee engagement through traditional methods remains a cornerstone for many organizations. 

Techniques such as annual employee engagement surveys, exit interviews, and observation provide valuable insights into employee satisfaction and engagement levels, helping to track key metrics and identify areas for improvement.

There’s no need to reinvent the wheel – but there are ways to improve it with the right technology!

Surveys and Questionnaires

Regular employee engagement surveys and pulse surveys are traditional methods for measuring engagement. These tools allow you to gather structured feedback from employees, providing insights into their satisfaction and engagement levels. Some organizations conduct an annual employee engagement survey, but more frequent ones are better.

Common survey questions include:

• How satisfied are you with your current role?
• Do you feel valued by your team and management?
• How likely are you to recommend this company as a great place to work?

Interviews and Focus Groups

One-on-one interviews and group discussions provide qualitative feedback and deeper insights into the employee experience and engagement. These methods allow for in-depth exploration of employee experiences and can uncover underlying issues that surveys might miss. However, they can be time-consuming and may not always represent the views of the entire organization.

Observation and Behavioral Analysis

Monitoring employee behavior and interactions can offer valuable insights into engagement levels. Observational data, such as participation in meetings and social events, can indicate how engaged employees are with their work and colleagues.

On the other hand, high levels of turnover or absenteeism can indicate a problem with engagement. 

Modern Technology for Measuring Employee Engagement

These traditional methods of measuring employee engagement remain relevant today. There’s no need to reinvent the wheel – but there are ways to improve it with the right technology!

Employee Engagement Platforms

An employee engagement platform like Inspirus offers comprehensive solutions for improving engagement and measuring success

Inspirus Connects empowers organizations to centralize engagement efforts and celebrate employees with both non-monetary social recognition and tangible rewards. Technology like this helps bridge the gap between what managers think they are doing and how employees actually feel. 

For instance, Gallup reports that 19 percent of managers and leaders say recognition is a priority at their organization. Compare that to the 40 percent of employees who say they are only recognized a few times a year or less. Building a culture of appreciation and recognition is significantly easier with the right engagement tools. 

Plus, pre-built surveys in partnership with The Happiness Index help keep a finger on the pulse of an organization's employee engagement and enable a detailed analysis of data. Gathering real-time feedback from employees really is key. It allows HR leaders to quickly identify issues and track engagement trends over time while responding promptly to emerging concerns.

Implementing Technology To Measure Engagement

Choosing the Right Tools 

Selecting the appropriate tools for measuring engagement requires having a clear picture of your needs and goals. 

1. Identify specific engagement measurement needs
2. Evaluate tools based on features, pricing, user-friendliness, and customization options.
3. If needed, run a pilot program to test tool effectiveness before full implementation
4. Get leadership buy-in

Integrating With Existing Systems  

Compatibility between your HR and IT systems helps with seamless integration and streamlined workflows.  

According to State of Today's HR Tech Stack and Integrations 2024 by HR Research, most HR departments are using between two and seven different solutions in their tech stack. But nearly a third say they’re held back from attaining important goals by a lack of tech integration. To fully leverage the benefits of HR technology, look for solutions that are compatible and can integrate.

Consider also data privacy and security when implementing new tools to protect employee information and maintain trust. 

Training and Onboarding

The engagement tools you use should be easy for employees and managers to use. Providing training and ongoing support can ensure that the tools are adopted widely and used effectively.

Analyzing and Interpreting Engagement Data

1. Data Collection and Management 

Start by ensuring accurate and consistent data collection. Organizing and storing engagement data systematically helps with tracking trends and making informed decisions over time.

2. Interpreting Results  

Identifying trends and patterns in the engagement data you’re collecting allows you to correlate those findings with bigger-picture business outcomes. 

Keep in mind the different factors driving engagement also help to develop targeted strategies that address issues that boost employee engagement and enhance employee satisfaction.

3. Taking Action Based on Insights

Just having the data isn’t enough to move the needle. You need to use that engagement data to inform strategies that improve engagement levels. Continue to monitor key metrics and the impact of those changes over time.

Common Challenges and Solutions in Measuring Engagement

Data Privacy Concerns 

Ensuring employee data confidentiality is a significant issue. Organizations must adhere to legal requirements and implement robust data protection measures to maintain trust and compliance. 

Plus, being proactive with privacy can help encourage more accurate results about true employee sentiment. For instance, an employee is more likely to share genuine feedback and concerns when the engagement survey is anonymous. 

Employee Participation 

Getting widespread participation in engagement surveys and feedback tools can be challenging. Survey fatigue is real. Focus on demonstrating that employee feedback is being acted on and constructive feedback is leading to tangible changes helps encourage higher participation rates.

Interpreting Complex Data

Handling large volumes of engagement data can be overwhelming. Using data visualization tools can simplify insights and help HR teams communicate findings effectively to stakeholders.

Modern Technology To Increase Employee Engagement

Traditional and tech-enabled, modern methods of measuring employee engagement both have their place in today's workplace. 

By leveraging advanced tools like employee engagement platforms and survey tools, HR leaders can gain a comprehensive understanding of employee engagement levels. This, in turn, allows you to develop effective strategies to boost engagement and drive business success. Learn more in the HR Leader’s Guide to Employee Engagement.