The Engaged Index is a metric that was created to measure employee engagement. We define an engaged employee as one who is motivated and committed to act in the best interest of the company. It is a simple and accurate predictor of engagement, consisting of four highly correlated indicators assessing slightly different aspects of employee commitment and motivation to act in the best interest of the company.
The survey asks the following four questions:
- How likely is it that you would recommend the company as a place to work?
- How likely is it that you would recommend the company’s products and services to a friend or family member?
- How likely is it that you would stay with the company if offered a similar job elsewhere for slightly higher pay?
- How likely are you to go above and beyond what is expected of you in your job?
Employees are asked to rate each indicator on a 0-10 scale. The Engaged Index is the net score calculated by subtracting the bottom scores from the top scores. It does this with an algorithm that looks at how each employee responds to all four questions. If someone responds to 3 of the 4 questions with a 9 or 10, it considers them a promoter. If someone responds to 3 of the 4 questions with a 6 or below, it considers them a detractor. The actual calculation is done by subtracting the percentage of detractors from the percentage of promoters.
Using the net score rather than a straight total provides a more reliable view when measuring engagement. A net score takes into consideration the bottom scores that can be costly to a company. Employees who fall into this group are often lowering productivity and diminishing the work culture. Taking the score only from the top provides a false sense of confidence because it ignores the bottom box group. The net score helps managers in making improvement plans that are focused on engaging more people—moving them up the spectrum.
The Engaged Index was conceptualized and validated by a data scientist David Bakken, alongside Reward Gateway employees in 2011. David has years of experience working in market research, product development, innovation, and complexity science with companies such as AT&T, Epsilon Data Management, Stratford Associates, and Harris Interactive. David is a recognized thought leader in market research and a presenter at a variety of ESOMAR and American Marketing Association conferences since 2002, as well as at other industry conferences. David earned his doctorate in Psychology at Boston University.
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