Employee engagement is important regardless of the size of the organization. Happy and engaged employees lead to a happy and a prominent company.

Measuring employee engagement might sound daunting for someone who feels like they are not “stats-savvy”( if there’s such a word). I have written some very simple ways of measuring employee engagement, that you can also use, even if you feel like you are not statistically inclined.

What is employee engagement and why does it matter?

Employee engagement is the emotional commitment the employee has to the organization and its goals. This means engaged employees care about their work and their company. They don’t work just for a paycheck, or just for the next promotion, but they work towards the organization’s goals.

5 Simple ways to measure Employee Engagement as an SMME

  1. Resignation

The number of resignations in a given period serves as a good indicator of employee engagement. This can be calculated as follows:

#of employees who resigned in a given period

______________________________________________      x 100

#Of Employees in the same period

2. Employee Retention

These are the number of employees that the organization has retained in a given period. It is measured as follows:

Total # of employees – Total # of employees who left

__________________________________________________      x 100

Total # of employees


50 Employees – 5 who left

__________________________________     x 100

50 Employee

= 90% meaning the company retained 90% of its workforce

Ideally, the retention rate for an SMME should be 85% over a year.

3. Absenteeism Rate

A high absenteeism rate can correlate with low employee satisfaction and can be calculated as follows:

Number of absent days

____________________________________    x 100

Number of available workings days in a given period


10 days 

                                 ___________________________________     x 100

(21.67 days in a month x 12 Employees) 260

= 3.84%

4. Employee Net Promoter Score (eNPS)

This was my favorite to discover when I was reading up on the different ways to measure employee engagement. Using this kind of metric requires the implementation of employee surveys. From these surveys you can then identify Promoters, Passives and Detractors from the employee surveys.

This is calculated as follows:

eNPS = % of promoters – % of detractors

A good eNPS score is between 10 and 30. Anything above 30 is excellent.

5. Employee Satisfaction

Employee satisfaction can also be measured through a survey. Questions should be structured in a way that enables you to analyze them under a theme.

6. Employee Performance

Performance is also a great indicator of engagement. Performance metrics can be divided into three categories. Namely:

  1. Work Quality Metrics (E.g. number of errors, net promoter score and 360 Degrees performance feedback)
  2. Work Quantity (E.g. number of units produced, number of sales and handling time)
  3. Work Efficiency Metrics – These balance the qualitative and quantitative performance metrics

7. Customer Happiness

Low employee engagement rate sometimes causes low customer satisfaction. When considering customer happiness, it is important to consider other employee engagement measurement tools because happy customers can be as a result of employee burnout


I hope this article has made the idea of measuring employee engagement in your organization seem simpler and not like a far-fetched activity reserved for big corporates only. When your employees are engaged, this will lead to labor efficiency. There is a direct correlation between employee performance and employee engagement. Engaged employees are effective employees

To find out more about other Human Resources Management activities that you can have at your disposal as a business to ensure that you have an effective and an efficient workforce, please visit our website to register.


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