How is employee engagement measured?

Leaders are often familiar with the benefits of an engaged workforce, but how is this actually measured? It’s an important question especially as drivers, motivations, commitments and recommendations vary from one organisation to another.

What is employee engagement?

Firstly, it is important to define what is being measured. Employee engagement is the emotional and psychological commitment people bring to the workplace. It relates to how people express themselves, physically, cognitively and emotionally when reacting with their jobs. This is manifested in how they Say, Stay and Strive for their organisation’s success.

The Say, Stay, Strive Framework

• Say: Do employees speak positively about the organisation?
• Stay: Do they feel loyal and connected?
• Strive: Are they willing to go the extra mile?

So why does engagement matter?

Decades of analysis, across many research organisations such as Gallup, link employee responses to performance outcomes including profitability, productivity, turnover, safety, and customer loyalty. For instance, teams in the top engagement quartile outperform the bottom quartile with 81% lower absenteeism, 58% fewer patient‑safety incidents, 43% lower turnover in low‑turnover organisations, plus 18% higher productivity and 23% higher profitability (Gallup, 2013. Dennison, 2024).

Research from Watson Wyatt, Towers Perrin, Aon Hewitt, and others echo these findings – high‑commitment workplaces enjoy 47% to 200% better performance, significant reductions in absenteeism, and strong financial returns like EPS and net income growth (HPT By DTS, 2013).

When measured effectively, employee engagement becomes a powerful lever for performance and retention. It reveals where your organisation is thriving and where it’s at risk.

Why measure engagement?

Measurement is the first step to improvement, and this begins with asking the right questions. Through thoughtfully crafted questions, we assess employees’ perceptions, motivations, and behaviours across multiple drivers – such as compelling leadership, employee voice, and opportunities to realise potential.

By allowing us to use our expertise in measuring engagement you can focus on the important aspects that can produce real improvements. By using anonymous feedback tools employees can feel empowered to be honest, open and truthful. However, surveys alone aren’t enough – they must spark action. They allow you to focus on action. Unless leaders listen and follow through, surveys are merely checkboxes. This is where, the role of managers is critical: manager engagement is deeply tied to team engagement, yet only 44% receive training. When managers are supported and coached, engagement and therefore overall performance improves (Berwick, 2025).

The evidence is clear: engagement isn’t just a buzzword – it’s measurable, it’s manageable, and it drives performance. With a well-designed survey, we can turn employee sentiment into precise data. That data translates into real financial and cultural gains when acted on, providing reduced turnover, healthier teams, stronger bottom lines.

The difference comes from what happens next: transforming insight into action. That’s where we come in. Our surveys don’t just measure; they give you a roadmap, tailored to your managers and your culture, so change isn’t left on ‘paper’.

We’d love to partner with you to make engagement a growth driver in your organisation, not just a number in a report. Contact us now!

Gallup. 2013 (updated 2023). The benefits of employee engagement. Gallup. Available at: https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx (Accessed: 9 September 2025).

Dennison, K. (2024) ‘Gallup says $8.8 trillion is the true cost of low employee engagement’, Forbes, 16 July. Available at: https://www.forbes.com/sites/karadennison/2024/07/16/gallup-says-88-trillion-is-the-true-cost-of-low-employee-engagement/ (Accessed: 9 September 2025).

HPT By DTS. 2013. Employee Engagement Research Summary. 7 June. Available at: https://blog.hptbydts.com/employee-engagement-research-summary (Accessed: 9 September 2025).

Berwick, I. (2025) ‘Happy managers = happy staff’, Financial Times, 23 April. Available at: https://www.ft.com/content/87f39dc8-bb16-44e5-b80e-724b1bae67b8 (Accessed: 9 September 2025).