Top 10 Key Performance Indicators for Measuring HR Employee Engagement

Employee engagement is one of the most crucial HR responsibilities for organizational success. But how do you know if your workers are engaged at all levels and departments? The answer lies in tracking the right metrics—in this case, KPIs. 

As an HR leader, you want to monitor the top key performance indicators (KPIs) to measure employee engagement from the start. This allows you to identify areas for improvement and create new, updated strategies that nurture a thriving company culture.

In this post, we’ll discuss 10 essential KPIs. These metrics provide insight into the employee experience, which directly correlates with engagement levels at your organization.

What Are Engagement KPIs?

Level-setting is in order before we get started with the specifics. What is a metric? Metrics are measured data points; they help leaders understand what’s working and what’s not. Good metrics reflect how happy and engaged employees feel at work.

HR pros should choose employee engagement measurements that align with company goals regarding employee satisfaction. If having very low turnover matters to you, then track turnover trends. Metrics inform your people-focused plans and programs. 

Picking the Right Metrics

With countless metrics to choose from, landing on the right HR KPIs for engagement may seem impossible, but it’s not. You can use the employee journey as a starting point since it serves as a helpful framework. Consider indicators that offer insights into various touchpoints:

Onboarding – Survey new hires on their onboarding experience. Track completion rates for training requirements.

Day-to-day – Evaluate absenteeism, presenteeism, and performance metrics.

Development: Monitor participation in internal mobility and upskilling programs.

Company Culture – Pay attention to turnover rates, exit interviews, and employee feedback.

Remember this, though. Data only translates to actionable insights when regularly and accurately tracked. Define how each metric is calculated, set goals, and analyze trends over time. For example, a one-time peak in turnover rate will trigger different responses than continuously climbing turnovers each quarter.

Top 10 Employee Engagement KPIs

Now, onto the part you’ve been waiting for. This section will explore 10 impactful KPIs for illuminating the employee experience at your organization.

Employee Satisfaction Surveys

First, you know how important it is for employees to feel heard, so you can encourage them to share their opinions. One way to do that is through anonymous surveys, which reduce the fear and discomfort some people may associate with voicing their opinions. 

Ask questions to learn what matters to your people and what can be improved. Surveys elicit direct feedback across factors that impact engagement:

• Management support
• Workload
• Comfort reporting issues
• Benefits
• Growth opportunities

Dig into the results to better understand your worries. Share your findings and make changes promptly to show you listen, acknowledge, and care.

Employee Net Promoter Score

Product-based companies know about net promoter scores, and eNPS works similarly. This index gauges employee loyalty and satisfaction. The inner workings are simple: ask employees questions like “On a scale of 0-10, how likely are you to recommend working here to others?” Based on responses, employees cluster into Promoters (9-10 score), Passives (7-8 score), and Detractors (0-6 score).

The overall eNPS equals: % Promoters - % Detractors

If you find that most score above 30, you are in solid engagement. Still, look to those detractors for advice on improvement. Also, examine how eNPS trends over time, ensuring it doesn’t dip.

Turnover Rates

Turnover rates are a reality when running a workplace with human beings with evolving needs and capabilities. Both involuntary and voluntary turnover impact productivity, affect the bottom line (revenue), and sometimes even damage company culture. 

Involuntary turnover generally results from poor job fit, so it doesn’t always involve participation. However, an employee’s voluntary exit almost certainly points to engagement issues. Stats show that 77% of employees are barely engaged and “quiet quitting” their jobs. 

Here’s the formula to remember:

Turnover rate = total separations over a period / Average number of employees over the same period

Ask those who quit why they did so during their exit interviews to understand what went wrong and how to fix it. If turnover starts climbing quickly, something needs attention.

Retention Rates

The opposite HR employee engagement metric can also help you in your quest to create a workplace where employees are engaged. Turnover shows who exits; retention spotlights loyalty. It tells a positive story when teams stay intact over time. The math is almost the same:

Number of workers retained over a specified period / Total average number of employees over a period

Retaining top talent saves tremendous resources, so aim for strong retention, especially among high performers. By examining the retention rate, you’ll be in a prime position to understand what works at the company and do more of it. 

Absenteeism and Presenteeism

Understandably, people sometimes must miss work when out sick or for other personal reasons. If many are gone at the same time, it can hurt productivity. Yet, we don’t want sick employees forcing themselves to show up, which can cause distraction and spread illness. 

That’s a dilemma.

The only solution here is to collaborate to balance attendance rules and support employee health. If absences increase, be happy to listen to why and work together on potential solutions.  

Find absenteeism by gathering:

Number of days absent during period / Total number of workdays in the same period

Do the opposite for presence rates or subtract the absenteeism from 100 to find it. 

Engagement Initiative Sign-Ups

Managers spend time and put effort into fun morale events, learning programs, and other perks to boost engagement, but those only work if people participate. This KPI determines whether you have strong sign-up numbers to tell you if these offerings hit the mark. 

Lower interest may mean you’re missing opportunities. While quantity matters some, focus first on quality experiences. How can you tailor things to what most employees want and need? Be open to suggestions; you’ll be surprised how quickly they take off. 

Job Performance Over Time 

Since more engaged employees perform better at work, examining job performance over time makes sense. Connect individual goals to broader business targets to get a clear view of tailored success metrics for each role. 

Sales quotas are a classic example. You’ll want to collaborate with managers to set realistic standards and track progress. All while providing helpful feedback. Never forget feedback! Top performers fully invested in your shared success will hit goals and grow over years of service. 

Where you see them, struggles signal chances to re-engage and build skills.

Average Tenure

Quick turnover happens in some companies, even with amazing cultures. It all depends on the industry and other various factors. In those cases, metrics like average employment duration give extra insight. Do most employees stick around for at least a year? Did any projects or policies with higher turnover come online during a specific timeframe? Try to spot the dips in tenure to surface pain points to address thoughtfully.

The KPI you are measuring here is simple: averaging the time people stay. But it’s also compelling, especially when compared to other of the best engagement KPIs. 

Recognition and Feedback Quality

Studies support the direct correlation between frequent, high-quality manager feedback and higher engagement. We recommend tracking how often and through what methods leaders recognize, reward, and coach their teams. 

Low scores may warrant exploring new peer recognition or digital feedback options.

External Review Sites

Lastly, we have the power of the almighty Internet. Sites like Glassdoor allow current and past employees to rate and review workplaces publicly. Monitor your overall star rating and recent feedback. If you notice scores drop, or complaints rise, it’s urgent to address the incidents and the cultural roots that enable issues to grow. 

It’s the same way customer ratings hold brands accountable. Brands know that leaving negative reviews unanswered can destroy their business, so they take the necessary steps to fix the problem. Online reviews offer transparency into company culture during job searches. If you want to attract top-tier talent to your organization, tackling uncomfortable truths proves far more impactful than disputing unjustified claims.

Bottom Line  

Data can be a powerful indicator and assistant in decision-making regarding employee engagement. It helps pinpoint struggles and brainstorm ideas to improve company culture so that more employees come to work engaged and ready to perform. 

HR should take the lead in gathering and analyzing these results through the means we’ve highlighted above. Which metrics do you currently track? Let us know in the comments below.