What is Employee Engagement?
Employee engament is the involvement and enthusiasm of employees in their work and workplace. (Source: Gallup)
How to Measure your current engagement?
This can be measured either manually or with online tools.
Because premade tools can be easier and quicker, Moov-IT.eu has created a Return On investment calculator and this is where you can easily give in your personalised numbers and get results that you can then publish in your management meetings.
And ROI tools help you to calculate your current engagement and how much you can save on an annual basis.
Manually calculating your Engagement Value
We will manually take an example here for Employee Engagement Return.
As an example, if you run a company with 200 employees.
STEP 1 in Calculating your employee or human capital salary or wages cost
- Choose an average salary for 1 person
- Here are some defaults you can use
- 50.000 eur / year
- 75.000 aud / year
- 60.000 us $/ year
- How many employees do you have ?
- Multiple the average salary x number of employees
(For this demonstration we are keeping this high level. In a further exercises you’d want to make this calculation per employee wage group)
This gives you a general cost of your salaries or total wages in your company.
STEP 2: To calculate engagement we will divide your employee engagement in 3 groups.
In detailed analysis we’d do questionnaires to get adequate scores, but often before starting a project, your management wants some kind of an estimate to allocate budget.
This is a great way to have a high-level estimate of your employee engagement cost.
- Calculate how many of your employees are:
1. Highly engaged:
‘Highly engaged employees are emotionally committed to their organization. They like their company and genuinely want the best for it. Company success feels aligned to their own success. Engaged employees are emotionally committed and have an excellent attitude. You’ll see them going the extra mile. Work is in collaboration. The values are about responsibility, reliability. It’s easy to work with them.‘
Find an article here of what a highly engaged employee looks like.
How many of your employees are highly engaged? …% - Our default sets that fully or actively engaged employees return 120% of their salary in value to the company (John Spence, 2013)
- 2. Neutrally engaged: A neutrally engaged employee will do the work, but will not go the extra mile. This is the majority of employees in many companies. They are present to do the job in exchange for an income or to learn for a future career.
How many of your employees are neutrally engaged? …% - 3. Disengaged: ‘A disengaged employee is someone who usually doesn’t enjoy their work, and as a result, does the bare minimum, doesn’t put in extra effort, and is highly unlikely to be a company evangelist. If that sounds bad, those who are actively disengaged are consciously causing problems at their companies‘ (Source)
How many of your employees are disengaged engaged? …%
STEP 3: We will then add a % to each type of engagement to calculate the TOTAL VALUE DELIVERED
- Calculate
1. Highly engaged:
multiple this number (ex. 10% x 200)
with the annual average salary (ex. 50,000 eur)
with a factor of 120%.
example : 10% x 50,000 eur x 120% - 2. Neutrally engaged:
multiple this number (ex. 80% x 200)
with the annual average salary (ex. 50,000 eur)
with a factor of 80%. - 3. Disengaged:
multiple this number (ex. 10% x 200)
with the annual average salary (ex. 50,000 eur)
with a factor of 60%.
Now make up the total VALUE DELIVERED by adding 1+2+3
STEP 4: Calculate if your company is gaining momentum and adding value from its team investment of loosing energy and funding.<
- If the VALUE created is > then the total average salary
You have a productive workforce. - If the VALUE created is > than the basic average salary
You have a workforce in dis-ease
How are these calculations going for you? <
We are here to help you 🙂
If you’d like us to make a calculation for you, email :
1. Number of employees
2. Average salary
3. Your estimate of engaged – neutral – disengaged
And we’ll provide you with a beautiful estimation of VALUE versus COST
Have a wonderful day full of enthusiasm, joy and pleasure.
Griet Johanna