How to Measure Employee Engagement: 10 KPIs to Track

Many employers are still not sure which employee engagement KPIs to track and how to measure the overall employee engagement in their organizations.

Without clear metrics, engagement often becomes a vague concept rather than a measurable business priority. This is why more organizations are investing in structured frameworks and tools for measuring employee engagement that combine surveys, behavioral data, and performance indicators. When used correctly, these tools help HR teams move beyond assumptions and identify patterns in feedback, participation, and productivity across departments.

According to the Gallup report, 51% of employees are disengaged in the workplace, while 13% are actively disengaged. Another study on employee engagement found that companies in the United States lose between $450-$550 billion each year due to disengaged workers.

Since the consequences of low employee engagement can be devastating for organizations, it is critical that organizations track engagement and adopt new workplace initiatives to improve it. 

In this blog, will define employee engagement KPIs and share some of the best metrics that can help you understand the level of employee engagement in your organization.

What Are Employee Engagement KPIs and Why You Should Track Them

Employee engagement KPIs are metrics that measure the level of employee engagement in the workplace.

They help organizations understand the current state of employee engagement in the organization and find opportunities for improvement. By regularly measuring employee engagement, employers can predict turnover, find ways to improve employee productivity, or discover opportunities for improving the overall employer brand.

Many organizations also rely on specialized tools for measuring employee engagement to collect and analyze this data more effectively. These tools combine surveys, participation metrics, sentiment analysis, and behavioral insights to give leaders a clearer picture of how employees feel about their work environment. When engagement data is tracked consistently, HR teams can identify trends early—such as declining morale in certain teams or gaps in communication—and address them before they turn into larger retention issues.

There are many different ways to measure employee engagement, and we will cover some of the most popular KPIs later in this blog.

Overall, employee engagement KPIs measure different employee experience factors that directly or indirectly impact how engaged employees are.

Because every employee has different needs, expectations, and preferences, there is no single best way to measure employee engagement. But there are certain factors most of the employees care about:

• Compensation and benefits
• Growth opportunities
• Diversity, equity, and inclusion
• Workplace trust and transparency
• Employee feedback and recognition
• Manager and peer relationships

Top 10 Employee Engagement KPIs to Track

There are dozens of various employee engagement KPIs, and most organizations rely on a combination of multiple different metrics. 

Below, we will list the KPIs we find the most useful to track. 

💡 Before we get started, take a look at our comprehensive employee experience guide, and don’t miss our Masterclass: Strategies for Driving Employee Engagement in the Workplace

1. Employee net promotor score (eNPS)

Employer Net Promoter Score, or eNPS, is a scoring system designed to help employers measure employee satisfaction and loyalty within their organization.

Similar to NPS, the eNPS system consists of a question asking employees to rate, on a scale from zero to ten, how likely they are to recommend the organization as a place to work.

Many organizations include this metric in their regular engagement surveys because it is quick to implement and easy to interpret. Modern tools for measuring employee engagement often track eNPS trends over time and segment results by department, tenure, or location. This makes it easier for leaders to identify areas where engagement may be declining and take targeted action.

The scores are rated into three categories:

• Promoters
• Passives (also called “neutrals”)
• Detractors

The overall eNPS score is calculated by subtracting the percentage of detractors from that of promoters. The result can range from -100% to +100%, highlighting the levels of engagement in your company.

While eNPS alone does not explain why employees feel the way they do, it provides a useful starting point for deeper analysis. Combined with qualitative feedback and other engagement metrics, it can reveal patterns in employee sentiment and help organizations prioritize improvements in their workplace culture.

Here is a great explanation for each of the categories by AIHR.

2. Turnover rate

Employee turnover rate is a measure of how many employees leave a company in a given period, usually a year. It’s calculated by dividing the number of employees who left by the average number of employees, then multiplying by 100.

Generally, the lower engagement, the higher employee turnover. Disengagement is usually the consequence of low job satisfaction, which ultimately leads employees to look for jobs elsewhere.

For this reason, turnover rate is often closely monitored alongside other engagement metrics. Many tools for measuring employee engagement combine turnover data with survey insights, manager feedback, and internal mobility metrics to reveal the root causes behind employee departures. When analyzed over time, these insights can help HR teams detect patterns—such as turnover spikes in specific teams or roles—and address issues before they lead to wider retention problems.

More specifically, companies that engage employees actively have an 18% lower employee turnover.

3. Employee lifetime value

Employee lifetime value is a metric that measures the total expected value of the contributions an employee will make to an organization over the lifetime of their employment.

As nicely explained in a Forbes article,

“Put simply, ELTV is the total net income that a company can expect from an employee during the period of their employment and is a useful mechanism to understand how valuable an employee really is.”

When employee lifetime value is low, then engagement is most likely low as well.

Organizations increasingly evaluate this KPI alongside engagement metrics to understand the long-term impact of employee experience. Advanced tools for measuring employee engagement help combine productivity data, retention patterns, and development progress to estimate the real value employees create over time.

4. Absenteeism rate

This is one of the easiest to track and most trusted employee engagement KPI.

When employees are not engaged at work, they often try to spend less time there. This adds up to higher levels of absenteeism.

Absenteeism patterns can reveal deeper engagement problems such as burnout, lack of motivation, or poor workplace communication. By monitoring attendance trends across teams and time periods, organizations can identify warning signs early and address underlying issues affecting employee morale.

According to a Gallup Workplace report, businesses with engaged workforces have lower employee absenteeism rates by up to 41%.

On the other hand, engaged employees are “less likely to be sick.” Those who see their job as worthwhile or exciting are more likely to be fully involved in and enthusiastic about what they do. Monitoring absenteeism alongside other indicators with modern tools for measuring employee engagement can help organizations identify whether attendance patterns are linked to workload, workplace culture, or communication challenges.

5. Performance evaluation

Highly engaged people tend to perform better, making them more willing to participate in performance management reviews that lead to higher engagement.

Research by Gallup shows that employees who are consistently engaged have a greater commitment to quality.

Hence, performance evaluations are usually a great representation of the level of employee engagement.

Organizations often analyze performance trends alongside engagement survey results to identify connections between motivation, feedback quality, and productivity. Many tools for measuring employee engagement integrate performance management data, helping HR teams understand how engagement influences individual and team outcomes.

When performance review results are poor, managers should put extra effort into understanding the reason behind it and how to bring the level of motivation and engagement to a satisfactory level.

6. Peer recognition

Engaged employees are more likely to engage in social recognition, and are more willing to give kudos and appreciation to their colleagues.

If employees rarely participate in your employee recognition program, that is probably a sign of low engagement.

Also, if your employees are not happy with how often they are recognized for their work, the chances they are not engaged are higher. According to a survey by OnePoll, 65% of respondents said they would work harder if they felt like their contributions were noticed by management.

Tracking recognition activity through internal platforms or engagement software can help organizations see whether appreciation is happening consistently across teams.

7. Survey participation rate

Engaged employees are always more likely to participate in various company and team-wide initiatives, including surveys.

When survey participation rates are low, that’s a sign of low employee engagement.

Participation rates also reveal how comfortable employees feel sharing feedback with leadership. Modern tools for measuring employee engagement often track response trends across departments and time periods, helping organizations identify where trust or communication may be lacking.

However, because most employee surveys are anonymous, it may be hard to figure out which employees don’t participate.

8. Employee referral rate

82% of employers rated employee referrals above all other hiring sources for generating the best ROI.

So it is not surprising that most companies have employee referral programs in place.

Similar to any other workplace initiative, the engagement with employee referral programs will be low if the overall employee engagement is low.

When employees are happy with their jobs and employers, they care about bringing in good new hires. If they are disengaged, they will rarely make an effort to help you in your talent acquisition efforts.

Tracking referral activity alongside engagement metrics can therefore provide valuable insight into how employees perceive the organization internally.

9. Intranet usage and engagement

According to a Deloitte report, organizations that used social intranets saw a 20% boost in employee satisfaction and a matching 87% increase in staff retention. For this, and many other reasons, most large organizations today have intranet solutions in place.

However, intranet usage rates can also be a great tool to measure employee engagement KPIs.

Modern employee intranets can give you valuable insights into the level of engagement in your organization. If the overall intranet usage is low, that’s a sign that the overall engagement is also low.

Analytics from these platforms—such as content interactions, comments, and collaboration activity—are increasingly included in tools for measuring employee engagement to provide a more complete picture of workplace participation.

10. Advocacy

There is a strong correlation between employee engagement and employee advocacy. Meaning, the more engaged employees are, the more likely they will act as your brand ambassadors.

If you already have an employee advocacy program in your organization, you are probably measuring your employees’ engagement with it.

When engagement is low, this can be a sign of the overall low employee engagement in the organization.

Monitoring advocacy activity—such as content sharing, social engagement, or participation in brand campaigns—can provide additional insights into how connected employees feel to the company’s mission and culture.

Best Way to Measure Employee Engagement

According to a Gartner poll, only 16% of companies leverage technology to track employee progress and engagement.

Even though many HR tech providers claim to measure people-related KPIs, the best way to measure employee engagement and employee experience is by regularly distributing employee surveys. Surveys provide direct insight into how employees feel about leadership, communication, growth opportunities, and workplace culture—factors that are difficult to capture through operational data alone.

Most large organizations today have some kind of company survey in place, but many of them don’t act on results, leading to even lower engagement.

But why is that?

Mostly because employers are unsure about how to analyze the data, draw valuable insights from it, and understand which new improvement initiatives to introduce. Collecting feedback without a clear follow-up plan can actually harm trust, as employees may feel their opinions are ignored.

Luckily, advanced survey solutions such as Haiilo come with built-in mechanisms that don’t only collect and analyze data but provide actionable recommendations for improvement. These tools for measuring employee engagement transform raw feedback into meaningful insights that HR teams and leaders can act on quickly.

With automated analytics, you easily anticipate problems and identify the best practices to support and engage your teams. Furthermore, custom notifications allow you to act on specific issues before they turn into turnover, absenteeism, or disengagement.

Furthermore, the solution uses AI for survey creation which elevates the process of gathering valuable feedback, enabling communicators and HR professionals to design effective survey questions with the help of generative AI.