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Eight Key Metrics That Can Diagnose Poor Employee Engagement

Jacqueline Benjamin | July 20, 2015

Don’t wait until your next employee satisfaction survey to discover that your workforce is unhappy or unengaged. There are a number of metrics that you can monitor for an insight into your organisation’s employee engagement levels.

You’ll be happy to hear that you won’t need any new surveys or data sets. It’s highly likely that you or someone else in your organisation is already collecting this data.

Increased Absenteeism
Disengaged employees don’t want to be at work. An increase in absenteeism, particularly sick leave, can be an indicator of a disengaged workforce. In a recent study conducted by UK consultancy MSB, as few as 7% of staff say that illness was the primary reason for their last sick day. The majority of employees were actually experiencing low job satisfaction, loss of responsibility and de-motivation.

Increased Employee Turnover
In addition to an increase in absenteeism, a company with a highly disengaged workforce is likely to see a dramatic increase in employee turnover. Gallup research discovered that companies with the lowest employee engagement scores experienced 51% more employee turnover than companies with the highest scores. As much as 31% of the workforce could be actively seeking new roles in an organisation with poor engagement, compared to just 3% in a firm with excellent engagement.

More Internal Complaints
Disengaged employees are less likely to see the positive aspects of their role and interactions with peers. If your HR teams are run off their feet with internal complaints, it could be an indicator of poor employee engagement.

Customer Service Declines
HR teams should pay close attention to the KPIs and performance of the customer service teams. A number of studies have demonstrated a strong association between engagement and customer service. Organisations with poor engagement will have a greater number of customer care issues and achieve satisfactory solutions for a lower percentage of customers.

Quality Decreases
The increase in customer service issues could be related to a decline in product or service quality. Companies where employee engagement figures are decreasing often experience a correlating decrease in output quality, generally measured either through quality testing or customer feedback.

An Increase In Theft
It seems that employees who don’t feel valued are highly likely to implement their own unauthorised Reward and Recognition programme. Companies with poor engagement figures experience 51% more theft, shrinkage and waste than their competitors.

Untouched Personal Development Budget
Engaged employees will often seek learning and development opportunities in order to improve their capabilities. Disengaged employees often don’t see the need or lack the motivation to improve. A decline on professional development spending in one or more departments may indicate a decline in engagement.

Increased Number of Accidents and Near Misses
Inattentiveness associated with engagement can create unsafe working environments. A 2013 analysis by Gallup found that organisations with engaged employees had 48% fewer safety incidents. An increase in accidents or near misses reported could be a sign that engagement is lacking throughout the organisation.

Have You Seen the Symptoms?
Do the metrics indicate that there might be an employee engagement problem in your organisation? It’s important to take action, because disengagement only breeds further disengagement.

There are a number of simple programmes that can be initiated to turn engagement levels around. At Xexec, we specialise in a range of simple solutions that can quickly, easily and positively impact engagement levels — from standalone employee discount portals through to complete voluntary benefits hubs.

Has your organisation gone through a period of poor engagement? How did you identify that your staff were disengaged? What strategies did you use to turn the problem around?

Topics: Employee Engagement, Employee Recognition

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