I’ll say it: traditional employee engagement strategies, such as sending out the same old questions once a year, just aren’t cutting it anymore (or shouldn’t be).

First, they don’t give us real insight into what employees are actually experiencing in their day-to-day lives. Secondly, they don’t help us gather the deep data needed to make meaningful organisational changes. Sure, At a surface level – but are you only interested in the surface?

Employee engagement is a complex phenomenon, one that requires continuous attention from organisations. And with headlines of a potential recession and lay-offs from well-known organisations, it is important that you do everything to re-engage your employees.

That is why it’s time to shift our mindsets and demand a data-driven revolution that challenges the status quo. As people analytics leaders and experts, it is crucial to challenge our assumptions and explore how we can maximise the ROI of employee engagement.

And by this, it’s time we go beyond looking at turnover statistics, absenteeism rates, or employee well-being scores to gauge our employees’ level of investment in our organisations.

While these metrics offer valuable insights, they only provide a partial view of the employee experience. If you genuinely want to know how to improve employee engagement, you must utilise your employee listening tools and go beyond surface-level employee engagement indicators.

Dawn Klinghoffer, Global Head of People Analytics at Microsoft, echoes this sentiment when explaining why Microsoft transitioned from measuring employee engagement to employee thriving:

“We wanted a higher bar than just engagement. In measuring engagement, often was the case that while things looked pretty decent, when we get under the covers a little bit and really understand what’s going on, there were key areas that we needed to focus on. So we thought, ‘Is there a higher bar that we could aspire to?’ and we did an external literature review, we did internal focus groups to really hear from our employees, in terms of what made them bring their best to work every single day. And that’s where we came to the conclusion that thriving was that higher bar that we were after.”

Connecting Data for Comprehensive Insights and Business Impact

Following Microsoft’s steps and measuring employee thriving is one way to make sure you are maximising the ROI of employee engagement. But even if you do decide to measure employee thriving, this is just the first step. The real challenge lies in connecting different sources of data to understand why employees are feeling a certain way, look for trends across their experience, identify the impact that it has on your business, and uncover how best to address their needs.

Take, for example, a client I was recently speaking to in the manufacturing industry. They found that their employee turnover rate was unusually high compared to industry averages. In our conversation, they revealed that safety was a significant concern for their employees. Yet, they had never asked about safety in their employee engagement surveys or pulse checks. This simple oversight could have been a factor leading to the high turnover rate. And all they had to do was ask the simple question, “What can we do to make you feel safer at work?” to get to the root of the problem.

Imagine the impact if this organisation had combined employee sentiment on workplace safety with employee engagement survey results, turnover percentages, and production output at each location. Suddenly, a comprehensive story emerges, painting a vivid picture of the true employee experience and its impact on the business.

The key here is not merely linking engagement to turnover; it’s about connecting the factors that drive engagement to those that drive turnover and, ultimately, business performance. That’s the ROI. And while engagement is essential, it is the secondary metric that leads to the primary metric of business performance - a perspective often overlooked.

So, to generate maximum ROI from employee engagement, you need to ask yourself: what insights do we need to understand our employees’ experience? What factors drive engagement and turnover and, in turn, business performance?

By linking employee engagement data to a wealth of other metrics, from productivity, safety, and performance to absenteeism rates, you can get a clear picture of the employee experience. Armed with this knowledge, you now have the power to make targeted investments aimed at improving the employee experience.

It’s Time to Focus on the Business Objective

Unfortunately, when it comes to employee listening, many organisations fall into the trap of prioritising engagement over business objectives. Yes, engaged employees are vital, but not at the cost of losing sight of the bigger picture - business success and sustainability. A laser focus on maximising the employee experience while neglecting business challenges can lead to short-sighted decisions with long-term ramifications.

What’s the point of optimising the employee experience if you’re oblivious to the needs and challenges of your own organisation?

Whether you’re undergoing a digital transformation or grappling with industry upheavals, your engagement strategies must align with your business objectives. Failure to do so is a surefire way to undermine your chances of achieving a positive ROI.

Think about it - consider a company in the midst of a digital transformation. If employee engagement strategies are not closely aligned with the company’s digital goals, the best employee experience in the world won’t save them from obsolescence. In such a scenario, calculating the ROI on employee engagement becomes futile if the primary focus remains on employee engagement rather than driving the business forward.

Breaking Free From “Conventional” Employee Engagement Best Practices

It’s time to break free from “conventional” employee engagement best practices and paint a more comprehensive, panoramic view of your employees’ experience.

Integrate multiple data sources, conduct in-depth analyses, and infuse your engagement strategies with a laser focus on business objectives. Break the chains of mediocrity and aim for the ROI that comes with a people-centric focus.

It’s time to defy expectations, maximise ROI, and create a workforce that propels your organisation to unprecedented levels of greatness.

ABOUT THE AUTHOR

Jay Dorio

Jay joined Insight222 in 2022 and leads our products and services team. He is a globally respected leader with extensive experience in consulting, product management, and business leadership, with particular expertise in employee listening. Previously, Jay led strategy and revenue growth for EX solutions at Qualtrics and he’s also worked at KPMG, Korn Ferry, IBM, and Kenexa during his career. He holds multiple degrees including a Ph.D. from the University of South Florida in Industrial/Organizational Psychology. Jay has lived in several locations across the USA, as well as in Toronto, Canada. He now resides in Nixa, MO and spends much of his free time watching his daughter play soccer and discussing the latest video games with his son.

If you’d like to connect with Jay, please visit his LinkedIn here.

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