Measuring the Impact of Your Employee Engagement Program

What are the Most Important Things to Measure in an Employee Engagement Program?

Research suggests that many engagement "programs" fail because they are viewed as a marketing initiative rather than a strategic change management initiative.  One of the foundational keys to this kind of enterprise change is establishing baseline data and then implementing constant, ongoing measurement and analytics to measure the impact of the strategy.

We always begin with the famous question, "What is the ROI of an employee engagement strategy?" Although many naysayers are convinced there is no way to attach ROI to an employee engagement strategy, research directly ties engagement to your bottom line.

In the 1970’s, Dr. Jack Phillips developed the ROI Methodology offering a successful method for measuring the impact and ROI of business initiatives.

The ROI Methodology can be explored and transformed to reflect employee engagement by following 6 key steps:

• Define Your Goals & Objectives
• Collect and Evaluate Your Data
• Isolate Received Data to Determine the Effect
• Do the Conversions
• Calculate the Costs of Deployment 
• Calculate the ROI

The potential of reaping the benefits of an outstanding employee engagement ROI is a reality, and our team at C.A. Short Company can guide you through the process of implementing your engagement strategy and your process for measuring its impact.

What Others Have Experienced

Depending upon your company's present level of engagement, investing in employee engagement and recognition can yield a significant return on investment. Take, for example, these findings from Gallup's 2017 State of the American Workplace study. Compared to companies with low levels of engagement, those with a highly engaged workforce experienced, on average:

• 41% Lower absenteeism
• 24% lower turnover (high turnover industries)
• 59% lower turnover (low turnover industries)
• 28% less shrinkage
• 70% fewer employee safety incidents
• 58% fewer patient safety incidents
• 40% fewer quality incidents (defects)
• 17% higher productivity
• 20% higher sales
• 21% higher profitability

Employee Engagement ROI Example

If you'd like to see an example of how to calculate an actual Engagement Strategy ROI, read our blog entitled How to Determine Employee Engagement ROI.