Employee engagement is a measure of how passionate an employee is about his role in the organization. Every employee, who is happy or satisfied is not engaged. Engaged employees often go the extra mile towards achieving organizational goals.
An employee might be happy to show up to work, but that doesn’t mean that his work is highly productive. A satisfied employee might work the required hours, even achieving set targets and goals, but might not be emotionally invested in the company. Unless he is emotionally involved, he will not go above and beyond his job description for the betterment of his company. He might even hop jobs without any concern about the impact of this on the company.
Research has shown that companies with engaged employees do better in the long run. Teams classified in the “high-performance zone for engagement” had a 37% net promoter score (NPS) versus a 10% NPS for teams outside of this zone (Source: Aon Hewitt European Manager Survey 2011. Aon Hewitt). Engaged employees are 87% less likely to leave the organization than disengaged ones (Source: Driving performance and retention through employee engagement. Corporate Leadership Council). “Research has clearly and consistently proved the direct link between employee engagement, customer satisfaction, and revenue growth” as per Harvard Business Review, 2000.
As employee engagement is important for many reasons, companies need to focus on how to make their employees more engaged. Measurement of current engagement helps companies understand where they stand. But, a one-time measurement is not enough – as it can provide a snapshot, at best. Regular measurement of employee engagement score throws light on the motivating and demotivating factors. A disengaged staff leads to a loss in revenues and high customer churn.
Regular measurement gives a steady flow of data that provides relevant insights that can help engage employees. This data also brings out a company’s weaknesses, as perceived by employees. When companies invest in employee engagement, it displays a commitment to providing a better working space. It shows that it is responsive to employee needs.
Employee Net Promoter Score
eNPS is a simple tool for measuring employee engagement. It is the internal equivalent of the customer loyalty measure – Net Promoter Score (NPS).
eNPS measures the “Ultimate Question“ in the same way: How likely is it that you would recommend (our company) to a friend? One of the main advantages of using eNPS is its ease of use. It quickly provides an overview of employee engagement and by adding a few more questions, the top management can easily understand why employees rate the company differently. It also allows employers to act quickly and decisively on any changes that are required.
It is clear that organizations should be concerned with employee engagement. However, the collection of such data is usually tedious especially since it is a continuous evaluation process. Analytical tools that can collate responses and interpret them correctly on a single dashboard to employers become a prerequisite to driving engagement. Employee engagement results give management an insight into what directly impacts their business outcomes.