How to measure employee experience effectively (with KPIs)

Let’s be honest: If your team feels valued, understood, and engaged, they’ll go above and beyond for you. Not only that but they’ll be more likely to stick with your organization. Gallup research shows that low-engagement teams typically endure turnover rates that are 18% to 43% higher than highly engaged teams. 

But how do you really know what your team’s employee experience (EX) is like? And how can you measure something as complexed and nuanced as EX?

This article will guide you through the intricacies of measuring employee experience, from the “why” to the “how,” and offer insights into turning your findings into strategies you can action right away. 

Whether you want to boost morale, increase engagement, or simply create a workplace where people love to be, understanding your employee experience metrics is the first step. 

Ready to dive in?

Let’s explore the methods and best practices that will empower you to improve your team’s job satisfaction and, ultimately, your organization’s bottom line.

What is employee experience anyway?

Think of employee experience (EX) as the journey your employees take with your organization. From the moment they first hear about you to the day they move on (and even after!), it all counts.

According to IBM, EX “encompasses every interaction an employee has with their employers, from recruitment to retirement, and meeting and supporting their functional roles and evolving work-life needs along the way.”

It’s about how they feel – their perceptions, emotions, and attitudes towards your organization. And those feelings directly impact everything from how engaged they are to how productive they are, whether they stick around, and even how happy your customers are.

A great employee experience leads to a team that’s motivated and committed. A not-so-great one? That can send your best people looking for new opportunities.

To get a handle on your EX, we need to look at some key performance indicators (KPIs). Think of these as signals that tell you how your team is feeling. Things like engagement scores, satisfaction ratings, and what people say in interviews all paint a picture of what’s working and what needs attention. 

By focusing on employee experience, you’re not just playing with numbers – you’re showing your team that you care. And that leads to happier employees, people sticking around longer, and a stronger business overall.

Why is measuring employee experience so important?

Measuring employee experience isn’t just a nice-to-have. It’s directly tied to how well your organization performs. When you understand your team’s experience, you’re not just checking boxes – you’re unlocking some serious growth potential. Here’s why:

• Keep your best people: Employees who feel heard and valued are way more likely to stay. By regularly checking in on how they’re feeling, you can address any issues before they become problems.
• Boost productivity: Happy employees are engaged employees, and engaged employees get things done. Use EX metrics to pinpoint areas where you can make work even better, leading to a more productive team.
• Make customers happy: Believe it or not, happy employees lead to happy customers. When your team feels good, they provide better service, which means more smiles all around.
• Make smarter decisions: The data you get from measuring EX helps you make informed choices. You can spot trends, anticipate needs, and create strategies that actually work for your team.
• Become an employer of choice: A positive employee experience makes you a magnet for top talent. In today’s competitive job market, showing that you care about your people is a huge advantage.

Using EX metrics and KPIs gives you a clear picture of what’s going on. Regular surveys, interviews, and feedback mechanisms are your tools of the trade. By listening to your employees and taking action, you’ll create a team that’s motivated, engaged, and ready to achieve great things.

How to actually measure employee experience

To get a real sense of your employee experience, you need a multi-faceted approach. Think of it like detective work – you’re gathering clues from different sources to build a complete picture. 

Here’s how:

1. Tech tools: HR technology is your friend. The right software can give you a ton of valuable data about your employees’ experience, from how effective your onboarding process is to how engaged your team feels.
2. Surveys: Surveys are a great way to get a pulse on how everyone’s feeling. Ask about things like job satisfaction, communication, and workplace culture. Mix up multiple-choice questions with open-ended ones to get both the numbers and the “why” behind them. Tools like Google Forms or OfficeVibe can help you keep things anonymous and easy to manage.
3. Focus Groups: Focus groups are like deep dives into specific topics. They’re perfect for exploring things like organizational culture, career development, and the work environment itself. These small group discussions give your employees a safe space to share their thoughts and feelings openly.
4. Interviews: Sometimes, a one-on-one conversation is the best way to understand someone’s experience. Interviews are ideal for following up on concerns raised in surveys or focus groups. They give you a chance to really listen and understand individual perspectives.

By combining these methods, you’ll gather a rich set of data that can reveal trends, highlight problem areas, and uncover opportunities to make your EX even better. Remember, regularly checking in on your team’s experience is the key to keeping them happy, engaged, and contributing to your organization’s success.

10 KPIs to keep an eye on

Measuring employee experience is all about using the right metrics. Here are ten key performance indicators (KPIs) to track:

1. Satisfaction levels: How happy are your employees with their jobs, the organization, and the work environment? Surveys are your go-to tool for measuring this.
   
2. Employee Net Promoter Score (eNPS): Would your employees recommend your organization as a great place to work? This simple metric gives you a snapshot of employee loyalty and how they view your organization’s reputation.
   
3. Internal referrals: Do your employees recommend their friends and family for open positions? A high referral rate is a great sign that people enjoy working for you.
   
4. Employee productivity: Are your employees getting things done? Productivity levels can reveal a lot about workflow, management practices, and the tools you provide.
5. Retention rates: Are your employees sticking around? High turnover can be a red flag that something needs to change.
6. Employee absenteeism: Are people frequently calling in sick? This could signal low job satisfaction or underlying workplace issues.
7. Recognition frequency: How often do you acknowledge your employees’ hard work? Regular recognition boosts morale and shows your team that you appreciate them.
   
8. Staff wellness: Do your employees feel supported in their physical and mental health? Wellness programs and initiatives play a big role in overall job satisfaction.
   
9. Performance review data: What trends are you seeing in performance reviews? This data can reveal how employees perceive their growth opportunities and overall engagement.
   
10. Team promotions: How often are you promoting from within? A healthy promotion rate shows your employees that there’s room to grow and advance in their careers.

By tracking these KPIs, you’ll gain a comprehensive understanding of your employee experience and identify areas where you can make things even better.

Ready to take your employee experience to the next level?

Measuring employee experience is essential for any organization that wants to succeed. Use these insights to create a workplace that not only meets but exceeds your team’s expectations. With the right approach, you’ll see a big jump in engagement, productivity, and overall satisfaction – setting the stage for long-term success.

Need a hand? Reach out to the employee experience experts at Appspace.