Getting to grips with engagement levels
Article Type: Metrics From: Strategic HR Review, Volume 8, Issue 2
The latest ideas on how to approach measurement and evaluation of HR activities
Helen Love Partner at Intuitive Brands
The case for employee engagement is irrefutable, but how do we actually measure engagement from an HR perspective? There are four simple stages for a general metrics process.
1. Understand what you are measuring and why
Why measure engagement in the first place? The metrics and tools you apply will depend to a large degree on the answer to this question. Are you seeking improvements in traditional HR measurements such as retention, recruitment and training costs on an HR scorecard? Is it to benchmark your people and processes against competitors? Do you want to focus on specific individuals and teams? Or are you looking for business performance improvements such as productivity,service delivery levels and the bottom line?
An emergent business metric for corporate performance is “Profit per employee,” which links directly to the accepted outcomes of improved engagement. Rather than relying on traditional financial data – quarterly results, balance sheets, etc. – this seeks to define and measure the contribution to organizational capital and profit from less tangible assets,specifically employees and their motivation and productivity.
2. Collect the data
There are many standard techniques to acquire the necessary data. Survey diagnostics that ask people fundamental questions about what they experience now, and what they would like in the future, are invaluable and are the easiest way to measure engagement, especially when built into a regular business cycle. Reinforced by focus groups and other inputs they can give a clear view of the engagement strategy you may need.
The difference between culture and climate surveys is quite subtle: culture is more top down and examines what and how things happen in your company and the rules and behaviors that govern the workplace. Does the culture support the mission and value statements, for example? A climate survey is more bottom up,assessing how employees feel about their environment. The questions asked should reflect these differences, although many companies opt to measure both in the same survey.
Questions should cover three areas:
whether staff are aligned with company goals;
whether they’re proud to work there; and
whether they are willing to go the extra mile.
If you need guidance in formulating your questions, The Gallup Organization created a 12-question template for measuring engagement to show clear links between high scores and superior job performance (Thackray, 2001). Finally, don’t just rely on one form of survey medium but create multiple and varied input opportunities, such as team briefings, off sites, standard surveys, town hall meetings, employee magazines, intranet and blog postings, etc.
3. Benchmark them
To optimize market presence and impact, you need to benchmark your engagement scores. You can do this by participating in external surveys such as the “100 Best Companies” compiled by Fortune Magazine and getting an independent assessment. A good employee research firm can show how your organization compares with other employers in the same sector or country and even with similar businesses with high financial results.
4. Do something with them
Collecting data is just the start. It is what is done with them that counts. Feedback can provide a quick list of “small win” actions to improve engagement. Leaders and managers should team with HR on delivery to demonstrate commitment at all levels. HR issues are often “fuzzy” or intangible so having indispensable data as evidence allows for better decision making,understanding of issues and follow up action. Concentrate on employee expectations and clarity, on providing the right tools and support, on developing skills and talent and on rewarding excellence, as these are four main drivers of engagement. HR may even wish to reconsider traditional incentive schemes to drive performance and job satisfaction based on new engagement metrics,
If you seek feedback and do not act on it, this is a massive de-motivator and can have a significant detrimental effect on engagement levels. The balance between necessary measurement, which is acted upon, and measurement for measurement’s sake is also critical. If the metrics are over-engineered,this will have as negative an impact as not acting.
Reaching the middle layer
Finally, by measuring engagement you show your employees that you want their feedback. This makes them feel respected and valued and builds engagement symbiotically. Feedback gives you insights into what influences satisfaction,performance, motivation and loyalty. Then, rather than concentrating solely on the two extremes, the high performers and the poor performers (this is often the HR way), remember the majority of your workforce who fall in the middle. How much untapped potential do they have? How much could you drive overall performance by helping this group to make one small step change in engagement?
About the author
Helen Love has worked in the internal communications arena for many years,running employee communications for companies such as Unisys, Microsoft UK and Yahoo! Europe. She and her business partner, Geoffrey Morgan, recently launched a new company called Intuitive Brands, designed specifically to offer a bespoke and holistic service to help companies of all sizes articulate, design,implement and manage employee engagement, internal branding and communications strategies. Helen Love can be contacted at: helen@intuitivebrands.co.uk
