The ROI of Team Engagement – How to Measure?
We find that employee engagement is best built at the team level. Groups of people working together to raise their productivity generates better results than engagement initiatives targeted person by person.
How do you measure it, though? Said another way, what is the gain that you are trying to measure? Here are metrics you might try, to set a baseline and measure progress:
Have the team set their own measurable goals:
- Uptime vs. downtime, in a production environment
- Headcount vs productivity – How many people are producing how much?
- Speed of goal achievement – How many project milestones are met on time? What caused success or failure?
Taking the time to set up metrics that your leaders will believe and value is also a critical planning step for any team-based engagement initiatives. So the team must select goals that others will understand and value. Your boss needs to weigh in on which metrics will be most valued upwards.
Also set up measurement systems that will actually gather data. Involve the team in collecting both the baseline and later performance data.
The bottom-line impact of employee engagement initiatives is in output per hour of paid work. Do employees do more per hour of work than before participating in training? What you want is more hours of their work day willingly spent producing, and fewer hours of “down time.” It can be that simple for measuring outcomes.
On the flipside, at a recent CLO Media Breakfast meeting, one moderator, Pablo Gaito, VP of Talent Management for Gap, Inc. made a point of saying senior executives fundamentally agree on the strategic need for human development, so detailed measurement does not need compete for scarce HR resources. Development programs that improve the organization’s ability to foster higher employee engagement and productivity should always have a privileged place in the annual budget.
We would like to agree with that sentiment, as developing employees and deepening their ability and willingness to engage and work more productively is undeniably valuable. But business is run through the bottom line, and resources have many claims on them. Proving your worth with tangible measurements of ROI never hurts in keeping your programs funded!