How to measure the effectiveness of your engagement program

Christopher Carson
February 29th, 2024
5 min read

To effectively evaluate the impact of Tenure and broader engagement strategies within your organization, a well-structured approach to measurement is essential. Utilizing Key Performance Indicators (KPIs) offers a quantifiable means to assess progress and outcomes. Below are key metrics recommended for monitoring on a quarterly basis for up to a year, to thoroughly understand the platform and employee engagement strategies effectiveness and make data-driven adjustments as needed.

Your Engagement Strategies KPI’s

Employee Turnover: 

To calculate an organization's employee turnover rate, which indicates the frequency of voluntary departures over a given period, the following formula is used:

Turnover Rate = (Number of Departures/Average Number of Employees) ×100

Here, you divide the number of employee departures by the average number of employees during the period (typically a year), then multiply by 100 to obtain the turnover rate.

A high turnover rate signals a potential issue with employee engagement, while a low turnover rate (10% or less) indicates strong employee engagement.

Employee Productivity:

Employee productivity can be assessed by examining the impact of their job performance and output on the organization's bottom line, specifically whether their work contributes to or detracts from sales of products and services. To measure this, use the formula:

Productivity Rate = Revenue / Total Number of Employees​


Divide the company's revenue for a given period by the total number of employees to obtain a benchmark figure. Departments or groups can further analyze this metric and compare it over time to evaluate changes in productivity. While this provides a useful baseline measure, doing a deeper analysis to identify the specific drivers of productivity and sales outcomes is recommended. 

Employee Satisfaction:

To accurately gauge employee satisfaction, it's beneficial to conduct regular employee satisfaction surveys aimed at obtaining an average net promoter score. These surveys, which can be conducted quarterly or annually, serve as a critical tool for assessing the overall satisfaction rate among employees. Evaluating the results of these surveys allows for the identification of areas of improvement in overall satisfaction, serving as a barometer for the success of the recognition program. Through this continuous feedback loop, organizations can make informed adjustments to enhance employee satisfaction and engagement.

Employee Absenteeism

Employee absenteeism often indicates a lack of engagement with their roles, leading to tardiness or absence altogether. To calculate the absenteeism rate over a specified period, apply the following formula:

Absenteeism Rate = (Number of Absences/Number of Workdays)×100

By dividing the total number of absent days by the total number of workdays within the same timeframe and then multiplying by 100, you determine the absenteeism rate. A high rate typically reflects poor employee engagement.

Enhanced Employee Engagement:

Monitoring employee engagement levels is crucial for maintaining a productive and motivated workforce. Organizations can employ various methods to effectively gauge engagement, including:

  • Pulse Surveys: A quick surveys, no more then 10 questions that cover any area to get a sense of how employees think about a certain issue
  • Employee Net Promoter Score: An annual survey to understand how loyal your employees are to your company. Utilizing a scale between 1 to 10, 1 meaning highly unlikely to recommend the company, while 10 being verly likely to recommend it.

    Using the answers, employees can then be placed into one of three categories:
  • Detractors (0-6 scores),
  • Passives (7-8), and
  • Promoters (9 and 10).
  • Detractors: These are employees unlikely to recommend the organization as a great place to work. Engaging with detractors is crucial to understanding their concerns and addressing underlying issues, thereby improving their experience and perception of the workplace.
  • Passives: Employees who are neutral and undecided about promoting the organization. Identifying what might convert passives into promoters is key. Understanding their needs and expectations can help tailor initiatives that enhance their engagement and loyalty.
  • Promoters: Enthusiastic employees who actively endorse the organization. Leveraging promoters for brand awareness involves exploring how their positive experiences can be shared externally to attract talent and build a positive employer brand.
  • The overall eNPS score is based on this formula:
    % Promoters ( – ) % Detractors = eNPSor  (Promoters – Detractors)/ total respondents = eNPSFrom a possible score range from -100 to +100, an organization wants to be as far above 0 as possible (a score of 10-30 is good).x
  • Annual Engagement Surveys: Essential for gaining insights into employee engagement year-over-year. These comprehensive surveys cover various organizational aspects, including progress towards company goals, culture evaluation, and employee demographics analysis. They serve as an effective tool for setting annual objectives, highlighting improvement areas, and acknowledging employee satisfaction. Regular monthly updates from senior management on these initiatives promote engagement through transparency.

Techniques to Obtain Feedback

Identifying and improving employee engagement requires a multifaceted approach, combining direct feedback mechanisms with proactive organizational strategies. Here are several effective methods:

Exit Interviews

Exit interviews provide organizations with valuable feedback at the conclusion of an employee's tenure. These interviews enable HR professionals to discern the reasons behind departures, identify areas for improvement for future incumbents, and enhance role attractiveness for prospective candidates. Occasionally, they may highlight urgent issues not directly related to retention, offering opportunities to refine the organization's offerings or implement necessary changes. Addressing these concerns can significantly enhance the organizational environment and its appeal to both current and future employees.

Stay Interviews

Stay interviews serve as a proactive measure to understand what motivates employees to remain in their roles, contrasting with exit interviews that seek reasons for departure. Conducting stay interviews can directly address potential concerns, demonstrating that employee feedback is valued. This approach may lead to adjustments in compensation, improvement of work practices, and, importantly, the retention of valuable expertise. It safeguards the organization's investment in employee development by preempting turnover.

Best Practices for Effectively Implementating Your Employee Engagement Strategy

To effectively integrate your employee engagement strategy into your organization's workflow and maximize its impact, the following best practices are essential:

Leadership Alignment

  • Secure Leadership Buy-in: It's crucial to ensure that leadership is fully committed to implementing the Tenure platform. Their support can significantly influence the successful adoption across the organization.
  • Active Participation by Leaders: Leaders should not only endorse the platform but also actively engage in recognition efforts. This sets a positive example and fosters a culture of appreciation and recognition within the organization.

Communication and Training

  • Transparent Implementation Communication: Effectively communicate the purpose, benefits, and process of integrating Tenure to all employees. Clear communication helps in setting the right expectations and facilitating smoother adoption.
  • Comprehensive Training Programs: Provide detailed training for both managers and employees. This should cover how to use the platform effectively, including how to give and receive recognition. Well-designed training programs ensure everyone is equipped to use Tenure to its full potential. If you need any help, Tenure is there to support you!

Communication and Training

  • Consistent Data Review: Regularly analyze the data which you are collecting to assess effectiveness of employee engagement and retention. This involves setting consistent intervals, often quarterly or annually, to assess effectiveness of engagement program. This can involve looking at recognition patterns, frequency, and feedback from users as well.
  • Identification of Trends and Improvements: Use the data to identify trends, patterns, and potential areas for improvement. This data-driven approach allows for continuous fine-tuning of the recognition strategy, ensuring it remains effective and relevant.

Implementing these best practices ensures that Tenure not only integrates seamlessly into your organization's workflow but also significantly enhances the culture of recognition and appreciation.

What gets recognized gets repeated

The integration of the Tenure platform within your comprehensive employee engagement strategy represents a synergistic approach to enhancing organizational culture. This strategy invariably leads to an uplift in employee morale, sustained engagement, and the fostering of a tangible sense of financial wellness and inclusion. As your engagement initiatives begin to bear fruit, the importance of highlighting and sharing success stories cannot be overstated. These stories fulfill a pivotal role: internally, they act as beacons of inspiration for the workforce and validate the efficacy of your strategies to leadership; externally, they underscore the company's commitment to nurturing employee well-being.

Tenure's rewards and recognition platform goes beyond its functional role to act as a catalyst for positive organizational change. Through strategic application of Tenure, coupled with diligent measurement of key performance indicators (KPIs) such as turnover rates, productivity, employee satisfaction, and engagement levels, businesses are poised to experience a paragon shift in their workplace dynamics. Adhering to the principle that "What gets recognized gets repeated," Tenure equips companies with the resources necessary to nurture a culture rich in continuous recognition and success.

By prioritizing leadership alignment, enhancing communication and training processes, and engaging in thorough data analysis, Tenure establishes a solid foundation for enduring positive impacts on organizational health. These efforts collectively contribute to creating a motivated workforce, deeply aligned with the company's vision and success. Embracing Tenure's as part of a comprehensive strategy equips organizations to adeptly navigate the complexities of employee recognition, thereby facilitating a vibrant, efficient, and rewarding work environment for all involved.

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Christopher Carson
COO, Tenure