Measure Employee Engagement to Improve Retention

Do you have an engaged workforce? You might not notice any problems if your team is showing up, getting projects done, and meeting deadlines. But behind the scenes, morale may be slipping, your top performers may be polishing their résumés, and by the time turnover spikes, the damage will have already been done. 

According to Gallup, disengagement costs businesses a staggering $8.8 trillion every year. And here’s the kicker: it’s not just about whether employees are “happy.” True engagement is about whether your people feel supported by their managers and motivated to give their best.  

In this guide, you’ll learn how to measure employee engagement with proven strategies, which metrics matter most, and how to turn those numbers into real improvements. 

The Business Case for Measuring Employee Engagement 

With the shift in employee expectations and the rise of hybrid work, you cannot afford to skip employee engagement metrics. You need to know how your workforce feels about their work and your organization because the costs of disengagement are bigger than you may realize.  

Disconnected employees are more likely to miss deadlines, burn out faster, and walk out the door. In fact, Gallup found that low engagement drags productivity down by 18%. When this leads to turnover, you’re losing institutional knowledge, paying recruitment costs, and waiting months for a new hire to catch up. 

This is why employee engagement metrics are crucial. By tracking it more often than an annual employee engagement survey, you can spot early warning signs like rising absenteeism or a dip in satisfaction on a specific team. This gives you time to act before low job satisfaction turns into turnover. 

Setting Clear Employee Engagement Goals 

Before you can measure employee engagement, you need to know your goals. Otherwise, managers might get stuck analyzing the wrong metrics. 

The key for setting goals is to make them clear and actionable. The SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) works perfectly here. For example: 
“Increase engagement scores by 15% within six months by holding monthly manager-employee check-ins.” 

This is a goal that ties directly to a behavior (manager check-ins) and an outcome (higher engagement). It is specific, measurable, and aligned with bigger priorities like building a stronger company culture and reducing turnover. 

Let’s look at strategies for measuring employee engagement and how you can turn those numbers into real results. 

7 Proven Strategies for Measuring Employee Engagement 

Once you’ve set clear engagement goals, the next step is figuring out how you’ll measure them. When it comes to employee satisfaction, no single number tells you everything. The most reliable approach is mixing hard data with employee feedback so you see both the “what” and the “why.”  

Here are seven proven strategies you can use for measuring employee engagement. 

1. Use eNPS (Employee Net Promoter Score) for a Quick Pulse

If you want a simple, effective place to start, try the eNPS. Simply ask your employees: 
“On a scale of 0–10, how likely are you to recommend this company as a place to work?” 

Similar to the NPS for tracking customer satisfaction, employees who score 9–10 are “Promoters,” 7–8 are “Passives,” and 0–6 are “Detractors.” Subtract the percentage of Detractors from Promoters, and you’ve got your score.  

What an eNPS calculation looks like in practice 

Let's say you survey 100 employees: 

• 40 employees respond with 9–10 → Promoters = 40% 
• 30 employees respond with 7–8 → Passives = 30% 
• 30 employees respond with 0–6 → Detractors = 30% 

Now, subtract the percentage of Detractors from Promoters: 
40 – 30 = 10 

That gives you an eNPS of +10 which is a positive starting point. As a good rule of thumb, you should aim for a minimum of +10. For most companies, you can feel confident about having engaged employees if you score +50 or higher. 

How often should you track employee engagement via surveys? 

A good rhythm for employee engagement surveys is conducting quarterly pulse surveys with one deeper eNPS survey each year. You should also lean on ongoing one-on-ones and focus groups so you’re catching issues in real time instead of waiting for survey results. 

2. Build Trust Through One-on-One Conversations

Surveys give you numbers, but one-on-ones give you stories. Encourage managers to hold regular check-ins with employees and ask questions like: 

• “Do you feel recognized for the work you do?” 
• “Is there anything making your work harder than it should be?” 
• "How can we improve your work-life balance?" 

When you consistently ask questions like this and act on their feedback, you'll increase employee engagement through making satisfied employees feel heard. 

How often should you have one-on-one conversations with employees? 

The best business practice to ensure you have highly engaged employees is to check in with them at least monthly in a one-on-one setting. These meetings can be brief yet will significantly help with retaining employees. 

3. Run Focus Groups for Qualitative Insights

If you need to go beyond employee engagement surveys but don't have time for monthly one-on-one meetings, consider running a focus group. These groups of 6–10 people work well because they feel small enough for honest conversations but still provide a range of perspectives. To make them effective: 

• Use a neutral facilitator so people feel safe sharing. 
• Mix departments or levels to uncover cross-company themes. 

Focus groups might also spark conversation and topics that employees may not think of in a one-on-one meeting. The insights you gather often explain the “why” behind survey scores and highlight issues that otherwise might get missed. 

4. Track Retention and Turnover as Engagement Indicators

Retention and turnover data are direct signals of engagement levels. For instance, high voluntary turnover among top performers or new hires usually points to disengagement. Watch for: 

• Turnover spikes at certain tenure points (like second work anniversary drop-offs) 
• Patterns tied to specific teams or managers

This kind of analysis ensures you accurately measure employee engagement and spot areas you can improve to retain talent and keep the rest of the workforce satisfied. 

5. Link Employee Engagement to Productivity Metrics

Engagement usually shows up in performance metrics. Compare engagement scores with business outcomes to see if there's a trend. For example: 

• Check your employee net promoter score against quota attainment for your sales teams. 
• Track engagement alongside on-time delivery and quality for project teams.

You’ll usually find that when engagement is high, performance follows. Making this connection will make it easier to start conversations and gather employee feedback regarding employee morale. 

6. Monitor Absenteeism and Wellbeing Trends

Absenteeism is often an early red flag for disengagement or burnout. According to the Bureau of Labor Statistics, the U.S. average absence rate in 2024 was 3.2%. If your numbers are higher, it may signal that your employees are disengaged and losing motivation.  

To address this through your employee engagement efforts, pair your absence rate data with wellbeing indicators such as stress survey results, Employee Assistance Program (EAP) usage, or overtime trends. This helps you spot areas where employees need more support. 

7. Use Exit Surveys to Learn from Departing Employees

When employees leave, they’re often more open and sincere than they ever were while employed. This makes exit surveys and interviews invaluable. Try asking: 

• “What prompted you to start looking for another role?” 
• “Did you feel supported by your manager and team?” 
• "What type of employee recognition did you receive?"

After asking these questions, look for patterns in their responses. For example, if several employees cite lack of growth opportunities or recognition, you’ll know where to focus. These insights help refine your engagement strategy and prevent future departures. 

First Timer Tips for Measuring Employee Engagement 

Measuring engagement does not have to feel overwhelming. The key is to start small, build momentum, and expand as you go. Here are a few simple steps to get you moving in the right direction: 

• Send out an employee net promoter score (eNPS) survey to get a quick snapshot of employee engagement levels. 
• Pair the eNPS survey with regular one-on-one check-ins so managers can dig deeper into the “why” behind the numbers. 
  • Do not look at numbers in isolation. For instance, if eNPS scores are dropping and absenteeism is creeping up in one department, cross-check your employee surveys with one-on-one feedback and turnover trends to find the root cause(s). 
• Look at your retention and turnover data to see where disengagement might already be costing you. 
• Share results openly and let employees know what actions you'll take next. 
  • Not every comment or data point needs an immediate fix. Start with the issues that will make the biggest difference to engagement and retention, such as introducing structured career development or improving manager check-ins. 
• Pick one improvement area such as career development, employee recognition, or workload balance and measure its impact over time.

Remember, the sooner you start measuring and implementing employee engagement strategies, the sooner you can turn those insights into stronger retention and a healthier workplace culture. 

Need Help Getting Started with Measuring Employee Engagement and Improving Retention? 

When you use these seven strategies listed above, you’ll get the clarity you need to improve employee engagement because surveys capture opinions, conversations provide context, and hard data like retention and absenteeism rates show the real-world impact. 

But collecting engagement data is just the beginning for business leaders. The real impact comes when they take that data and actually do something with it to improve the employee experience.  

There are several tools in the market to help you improve employee retention. Some tools bring surveys, analytics, and reporting into one place, such as HRIS dashboards and engagement platforms. If you want an all-in-one solution, Stratus HR has both the tools and expert guidance designed to help you improve retention by turning insights into action. 

Book a free consultation with Stratus HR today and start gaining insight for real life application of improving engagement to boost employee retention.