Do you compute an employee engagement index?
Every year or so you measure employee engagement. You survey all employees to determine the Level of Engagement—using a handful of questions—and then you concentrate on the Drivers of Engagement—a more extensive list of questions. You may also include items on pre-engagement Threshold Motivators—compensation and benefits.
Some clients ask if they can have an engagement score to use as a barometer to compare employee engagement over the years. In other words, if the same survey questions are asked, year-after-year, then some formula to label engagement in your company could, at least, give you a sense as to whether employee engagement is going up or down. So what number or percent do you use?
There are several options for computing an Employee Engagement Index. Here are a few:
One way to calculate an employee engagement index is to compute three numbers: the percent engaged, the percent responsive to engagement, and the percent disengaged. These numbers can be computed this way:
Level of Engagement items tend to measure the condition of engagement (the presence of cognitive, emotional and physical energy) and the outcomes of engagement like intending to stay with the company (retention), advocacy, and putting forth extra effort to make the organization successful.
Another way to calculate an employee engagement index is to compute the mean score of all percent favorable responses to all questions on the survey. This method does not look at individual responses but instead provides the average of the percent favorable scores for all items on the survey: the Level of Engagement items, the pre-engagement Threshold Motivator items, and the Drivers of Engagement items.
A final option for creating an employee engagement index is to compute a mean favorable score for each section of the survey and monitor changes in those scores, year-by-year. This method generates a number of scores to monitor. This works best if the company is targeting a particular area—like fit, trust, caring, communication, achievement or ownership—and wants to monitor if the changes they have made since the survey are having an impact.
Calculate scores for all sections—not just one or two sections—because any changes in one area will typically have an impact on other areas. Also, monitor the key driver questions to see if targeted items have changed.
There are many ways to compute an employee engagement index. Be sure to use a method that will help your organization improve engagement and not a number or set of numbers that do not drive positive change.