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How To Measure Employee Happiness

How do you measure success at your company? ROI is an essential metric every organization should be watching closely, but more and more businesses are also measuring employee happiness. Skeptics may see this as a ‘fluffy’ metric – how are you supposed to measure something as abstract as happiness, and why does it even matter?

Many companies have found there to be a correlation between general employee wellness and happiness. And, with research showing that the organizations that don’t take employee wellness seriously are more likely to suffer from increased absences, presenteeism and a lack of productivity, with their bottom-line taking a hit as a result, it’s in every company’s business interest to monitor the happiness of their staff.  

With the right HR Software, measuring employee happiness is easier than you might think. Here’s how to track staff well-being using an HRIS: 

Conduct regular performance check-ins and track progress

The world of performance management is changing. With the latest research showing that annual appraisals are failing to engage employees, many high performing organizations have adopted a continuous performance management strategy. This involves a series of regular conversations between employees and managers about progress and goals. 

Because informal check-ins are ‘live’, managers are better placed to monitor employee happiness and react at the optimum moment, rather than months too late. An ongoing two-way conversation leads to greater transparency and a better understanding of what gives your staff the most value at work. 

Modern HR systems provide a quick and easy way to record these conversations, meaning you can easily monitor your employee’s professional and emotional development. 

Gather data from pulse surveys

Like check-ins, employee engagement surveys give you real-time insights into your employees’ well-being. By gathering staff feedback, you can learn where the strengths and weaknesses lie within your company’s culture.

Some forward-thinking HR solutions have employee engagement surveys built into their system, allowing you to generate the reports you need to make key decisions. Surveys give you hard quantifiable data regarding your employees’ well-being – a vital weapon in your armory when it comes to getting buy-in at board level for well-being initiatives. 

Monitor absence patterns

Another key metric to keep an eye on. There are countless reasons for employee absence, 

many of which aren’t anything to do with happiness. But with the latest figures from the Health and Safety Executive showing 57% of all time taken off work is stress-related, it’s essential to monitor absence patterns to see whether your organization has a stress-problem so you can get to the root of its cause. 

It could be that the problem lies with a certain manager, or maybe a team is being stretched too thin or overloaded with work. With modern HR systems, you can easily gather absence statistics and identify any anomalies.

Track employee turnover

Staff will inevitably come and go, but do you know if your churn rate is higher than it should be? By gathering data on leavers from your HR suite, you can see how this metric compares with others in your sector, or how different areas of the business compare to one another. 

For example, if you find there’s a sudden spike in leavers within your graduate pool or middle managers, an investigation into why this is the case needs to happen. If there’s a high turnover rate for new employees, it’s probably time to revisit your onboarding policy. Keep this metric at your fingertips and take action if the data reveals weaknesses in your employee retention strategy.

Consistently measuring employee happiness using an HR system will help you get the most for and from your employees and ensure your organization is performing at its full potential. But remember, just identifying an issue isn’t enough. You’ll see real value when you use the data to enforce change, and act to develop and improve your company’s wellness culture.