5 KPIs To Measure Employee Experience Effectively

An increasingly important factor for Human Resource functions in organizations these days is the employee experience. Human Resource managers and team members struggle quite often to track the level of employee engagement which might be sometimes difficult to capture from accurate data points.  A few specific Key Point Indicators (KPIs) are required to track and improve the employee experience.

Recent studies focused on employee engagement state that organizations that excel at customer experience have employees who are 1.5 times more engaged than organizations with poor customer experience. 

Several chief HR officers from reputed organizations have reframed themselves as chief employee experience officer. It was a reasonable decision– bringing together traditional HR functions, along with employee communications, plus facilities, food, and global citizenship, to enforce a productive culture and hold on to top talent. This brought about a revolution in the companies approach and since then many companies have also appointed heads of employee experience within the HR team.

To calculate the employee engagement that exists in your company, accurate data points are required. Mentioned below are 5 KPIs that Human Resource teams and leaders can track to extract accurate insights into employee experience.

1. Net Promoter Score

A good way of tracking the loyalty of the employees of an organization systematically is the employee net promoter score. NPS plays a vital role in an organization’s success and hence is essential to track. It will help you identify whether your employees are likely to continue being productive and play a vital role in the company’s success. Online survey tools or a customized NPS survey can be used by recruiters to accurately calculate employee NPS. This survey will give you a clear understanding of what your employees want from their jobs. This in turn is extremely beneficial in improving employee engagement levels.

You might also be interested to read: Creative Thinking Ensures Great Employee Experience For Your Workforce

2. Absenteeism and Attrition Rate 

Companies with highly engaged employees have 41 percent lower absentee rates and 59 percent less turnover.

Review the absenteeism and attrition rate and compare the numbers against your desired levels. If you come across certain departments with a higher absenteeism and attrition rate, you should focus on identifying and addressing the underlying problems. 

If the rate of attrition is more than 10 percent or your employees are remaining absent repeatedly without giving a clarification, you need to identify the bottlenecks. Think through solutions that not only resolve the problem but also include an element of employee engagement. A simple step such as offering a reward for perfect attendance in the form of free vacation time, shift swaps or pay raises would help in elevating employee attendance.  The Society for Human Resource Management has researched relentlessly on this topic and according to them the direct costs associated with replacing an employee can be as high as half  of an employee’s annual salary. As the heart of any company, the human resources department acts and is in the best position to establish strategies to reduce absenteeism and attrition. The employees’ internal motivations would help the human resources to minimize the expense associated with absenteeism and attrition by adopting creative policies such as offering incentives or alleviating work related stress.

3. Job Satisfaction

The term ‘Job satisfaction’ may be defined as the extent to which an employee feels self-motivated, content & satisfied with his/her job. When an employee feels he or she has a stable job, career growth and a comfortable work life balance he/she is motivated to perform even under stressful situations. According to research by Singh K.(2000) “Effect of Human Resource Management Policies on Firm performance in India”, companies with an engaged workforce have 5 times higher shareholder returns.

An employee satisfaction survey can be conducted annually to know how satisfied your employees are in their roles. There are several online survey tools that let you customize the survey and make it anonymous so you can extract a wealth of valuable information. You can combine open-ended and closed questions to elicit quantitative and qualitative feedback from your employees and accordingly improve the level of employee engagement.  

4. Pulse Survey 

A pulse survey gives you a quick insight into the health of a company, hence the name ‘pulse’. A quick and prevailing employee survey system, the Pulse survey system, does away with complex questions and is intentionally designed to be done weekly, or every few weeks.

Almost 61 percent of employees feel burned out at work.

Employee pulse surveys harness the power of real-time feedback to give you a more accurate picture of your employee’s well-being. You can use a pulse survey tool to identify which areas of your business are impacting employee engagement for good or for bad.

By asking simple questions like, “would you recommend us to a friend” or “do you feel valued as an employee”, a pulse survey tool proves invaluable in improving and maintaining employee engagement levels. It helps promote a flexible approach towards reshaping the company’s culture for the better. 

5. Productivity 

Studies show that employees are 21 percent more productive if they are highly engaged within the organization.

When employee productivity is low or the monthly sales are falling off consistently, this could be a warning sign that your employees are not motivated to perform. Without high levels of employee engagement, you could find that your employees are performing only what is expected out of them, not pushing their limits, lacking in enthusiasm and innovation and also seeking employment elsewhere. When employees are working passively, profits are bound to take a nosedive. Therefore keeping the employees engaged within the organization is helpful in bringing about more productivity and in turn higher profits.

As more and more organizations prioritize employee well-being and advocacy, tracking and improving the employee engagement level is becoming increasingly important. The traditional employee engagement survey has around 40 to 50 mind-numbing questions, divided into different categories which can be extremely tedious to complete. In order to increase the completion rate and actually extract thoughtful and useful feedback, many companies are opting to use NPS software.

This software allows you to adopt a comprehensive approach which includes multiple KPIs and HR metrics. It also allows you to send personalized and engaging NPS surveys. With the right NPS software, you can send out pulse surveys, pick responding channels, and gain rich insights into the employee experience by asking the right questions.


5 KPIs to track employee experience effectively – Bhavika Sharma, 6th September 2019.

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