Ideas to Measure ROI of Employee Engagement

Main challenge that most of the HR professionals face is how to determine ROI for their efforts of improving employee engagement. They need to put forward valid points and explanations, to convince senior executives and management leaders for investing time and company resources, in improving employee engagement.

We have discussed the idea of improving employee engagement with many CEO’s. It looks like most of them understand why it is important, yet they struggle in creating a quantifiable return on investment in their organisations. It is found that quantifying the ROI in employee engagement often involves conducting beneficial initiatives like extravagant team-building events, tallying up past expenditures on expensive surveys. But these are not sufficient to create measurable improvement. 

Sustained actions of the employees and leaders are taken as inputs to demonstrate and achieve engagement, and those actions lead outputs that can regularly be measured. Path to a defined ROI for engaging employees will become much transparent and clear, when we consider actions that lead to outputs that can be measured. Even though the company’s focused action is to generate a high level of employee engagement and to support an engaged culture of employees. Always specific set of actions may not be necessary but there should be a philosophy to know how to involve employees in measuring engagement. Here we uncover a formula for engagement which is often misunderstood.

By both employees and leaders, actions that support employee engagement should be identified. If an employee has a desire to take actions that will create a ROI, firstly they must determine collectively and in conjunction with leaders across the organisation, to understand what are the efforts that will enhance their ability to assist the organisation and its mission.

In-a-way, this collective approach becomes as powerful and an atmosphere is created where employees feel heard and valued through actions. Unexpectedly, employees feel they have the ability to affect their roles and influence their leaders. One of the most important outcomes of engagement is belief of being equals and being able to exert one’s authority.

When leaders and employees together start focusing on collective futures, a positive environment is created. We have to help organisations to cultivate an empowered culture, by bursting the silos between workers through engaging activities for sustained growth.

Attaining a measure to calculate ROI of employee engagement is an ongoing process and certainly not known by conducting repeated surveys. Engagement is an outcome from building an environment in which leaders and employees work together, to define and nurture the success of the organisation.

A widely recognised person on customer and employee empowerment, who helps organisations embrace empowerment as a key strategy to improve employee independence, self-esteem and performance is Shawn Casemore.

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