Last updated on Mar 6, 2024

What HR metrics are most effective in identifying engagement issues?

Engagement is a key factor for the success of any organization, as it reflects the level of commitment, motivation, and satisfaction of the employees. However, measuring engagement can be challenging, as it involves both quantitative and qualitative data. In this article, we will explore some of the most effective HR metrics that can help you identify engagement issues and take action to improve them.

1 Turnover rate

One of the most obvious indicators of engagement is the turnover rate, which measures the percentage of employees who leave the organization voluntarily or involuntarily within a given period. A high turnover rate can signal a lack of engagement, as employees may feel dissatisfied, unappreciated, or unaligned with the organizational goals and culture. To calculate the turnover rate, you can use this formula: Turnover rate = (Number of separations / Average number of employees) x 100 You can also segment the turnover rate by different categories, such as department, tenure, performance, or reason for leaving, to identify specific areas of improvement.

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Pablo Sanchez del Monte

HR Business Partner | Driving Business Value through Strategic HR | Labour & Employment Law | Culture, Talent & Change | HR Operations
La tasa de rotación por si sola no proporciona información relevante, pero permite calcular el coste de la falta de retención de personal y ayuda a tener argumentos para fomentar nuevos proyectos de RRHH que puedan mitigar y reducir la rotación y, por ende, los costes económicos derivados de esta. Es importante también conocer los motivos de esta rotación e incluso segregar la tasa de rotación en años de experiencia en la empresa, edad, departamentos, mercados...

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2 Employee Net Promoter Score

Another useful metric to measure engagement is the Employee Net Promoter Score (eNPS), which is based on the concept of the Net Promoter Score (NPS) used to measure customer loyalty. The eNPS asks employees one simple question: How likely are you to recommend this organization as a place to work? The employees can answer on a scale of 0 to 10, where 0 is extremely unlikely and 10 is extremely likely. The eNPS is then calculated by subtracting the percentage of detractors (those who score 0 to 6) from the percentage of promoters (those who score 9 or 10). The eNPS can range from -100 to 100, where a positive score indicates more promoters than detractors, and a higher score indicates higher engagement. The eNPS can help you gauge the overall sentiment of your employees and their willingness to advocate for your organization.

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Pablo Sanchez del Monte

HR Business Partner | Driving Business Value through Strategic HR | Labour & Employment Law | Culture, Talent & Change | HR Operations
El eNPS es una de las métricas principales para conocer el nivel de compromiso de la plantilla. Su origen es del Marketing (NPS), y se calcula pidiendo a los empleados que indiquen, del 1 al 10, como de probable es que recomienden la empresa como un buen lugar para trabajar a amigos y familia. Las respuestas que marquen del 1 al 6 se denominan "detractores", del 7 al 8 son "neutros" y del 9 al 10 son promotores. El cálculo se realiza: (Promotores-Detractores)/Total Empleados x 100 El resultado puede ir del -100 al 100. Por lo general, a partir de una puntuación de 20 se empieza a considerar que hay un buen nivel de compromiso, aunque dependerá del sector y contexto de la empresa.

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3 Absenteeism rate

A third metric that can reveal engagement issues is the absenteeism rate, which measures the percentage of employees who are absent from work without a valid reason, such as illness, vacation, or personal leave. A high absenteeism rate can indicate a low level of engagement, as employees may lack motivation, enthusiasm, or loyalty to their work. Absenteeism can also affect productivity, performance, and team morale. To calculate the absenteeism rate, you can use this formula: Absenteeism rate = (Number of days absent / Number of available workdays) x 100 You can also track the frequency, duration, and causes of absenteeism to understand the underlying factors and patterns.

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4 Recognition rate

A fourth metric that can influence engagement is the recognition rate, which measures the percentage of employees who receive recognition for their work within a given period. Recognition can be formal or informal, monetary or non-monetary, public or private, but it should always be timely, specific, and meaningful. A high recognition rate can boost engagement, as employees feel valued, appreciated, and motivated to perform better. To calculate the recognition rate, you can use this formula: Recognition rate = (Number of recognition instances / Number of employees) x 100 You can also measure the quality, frequency, and impact of recognition to optimize your recognition program and culture.

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5 Employee feedback

A fifth and final metric that can help you identify and address engagement issues is employee feedback, which is the process of collecting, analyzing, and acting on the opinions, suggestions, and concerns of your employees. Employee feedback can be gathered through various methods, such as surveys, interviews, focus groups, or suggestion boxes. Employee feedback can help you understand the strengths and weaknesses of your organization, the needs and expectations of your employees, and the areas of improvement and innovation. Employee feedback can also increase engagement, as employees feel heard, respected, and involved in the decision-making process.

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Pablo Sanchez del Monte

HR Business Partner | Driving Business Value through Strategic HR | Labour & Employment Law | Culture, Talent & Change | HR Operations
A medida que la plantilla aumenta, empieza a ser más complicado poder abordar todos los comentarios de los empleados, y herramientas como Suggestion Box pasan a ser menos efectivas. Para ello, podemos implantar otras estrategias donde focalizamos en algunas personas, como son Focus Groups sobre temas concretos, o Townhalls para crear un momento de debate/aportación de ideas en un espacio seguro donde se pueda hablar libremente. Eso no quita que el area de Personas deba ser promotora de "puertas abiertas", y poder atender las preocupaciones de los empleados siempre que sea posible, pero sin perder el foco.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Andreea Vihristencu

Senior People Partner | HR Business Partner | People Operations | Passionate About Making a Positive Impact on Company Culture | Creating Inclusive Cultures to Unlock Innovation
Performance reviews can help identify engagement issues by encouraging open communication. Employees can share any discrepancies that may indicate disengagement. It's important to keep in mind that engagement is a complex issue that requires the analysis of multi-dimensional data to draw accurate conclusions.
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Iago González

Change Management at Navantia
Desde mi perspectiva el compromiso es cómo me siento yo, con respecto a la empresa y qué estoy dispuesto a hacer por ella, por tanto las preguntas tienen que ir orientadas a sentimientos y comportamientos. Algunas ideas son: - Orgullo por trabajar aquí - Me siento reconocido - Estoy creando recuerdos positivos (OJO! las preguntas orientadas al pasado pueden impactar en los resultados) - Estoy dispuesto a asumir nuevas responsabilidades - Me gustaría contribuir más a los objetivos de mi empresa - Me gustaría trabajar por mejorar mi empresa etc... Es fundamental usar muchas dimensiones para que la encuesta mida muchas cosas, pero no perdamos el foco en sentimientos y comportamientos.

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What HR metrics are most effective in identifying engagement issues?

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4

5

6

1 Turnover rate

2 Employee Net Promoter Score

3 Absenteeism rate

4 Recognition rate

5 Employee feedback

6 Here’s what else to consider

HR Operations

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What HR metrics are most effective in identifying engagement issues?

1

2

3

4

5

6

1 Turnover rate

2 Employee Net Promoter Score

3 Absenteeism rate

4 Recognition rate

5 Employee feedback

6 Here’s what else to consider

HR Operations

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