How to Measure Your Employee Relations Strategy: 16 Employee Engagement KPIs

By Deb Muller, on May 14, 2014

Every organization is aware it needs a solid employee relations strategy. But there are few people who can give you solid guidance on exactly how to DO that.

Building a strong strategy involves creating an environment that delivers what people want now (or in the near future). Your employees want to feel good about who they are, what they do and where they work. And you want to feel good about productivity, overall performance and the emerging leaders in your organization.

Now before you start getting frustrated about just how much you need to kowtow to employee needs, keep the bottom line in mind. I will save the impact of your employee relations strategy, on employee engagement, and the impact of engagement on your company’s ROI (there are even stats tying it to sales), for another post. For now, take my word for it. Employee relations is important. For each employee need expressed above, I’ve identified employee engagement KPIs (Key Performance Indicators) that will help you evaluate your employee relations strategy.

16 KPIs to Measure Your Employee Relations Strategy

Our four key employee relations needs are culture, communication, compensation, and complaints. Let’s take a look at each.


Employees need to feel good about what they do and where they do it. Decide with your team what values really represent your company and then make them as transparent as possible. Hopefully, these align with the majority of your employees. But even if they don’t, it’s important to articulate them to every person in the organization as these values will drive expected behaviors in your organization. Put measures in place so people can be recognized and applauded when they live up to those values. It should go without saying that leadership is the most beholden to this cultural code.

How: Gather the mission/vision statements and the highest execs you can put in a room and ask them. Build a simple PowerPoint with easy-to-understand statements to disseminate to your employees. If you can, make it public so it can be part of your talent acquisition process.

Potential KPIs:

  • Views of the Powerpoint on the company intranet
  • Quick follow up survey numbers (increased understanding)
  • Number of recognitions coming from employees
  • Number of employees and leaders who can articulate values
  • Collected and actionable post-hire data


Employees need to know what’s going on. They can’t work in a vacuum and they need an avenue for articulating needs, wishes, complaints and goals. What does your newly implemented employee relations strategy do to ensure this happens? Instead of just communicating TO employees, ensure there are flexible ways for employees to communicate back – the good, the bad and, yes, the ugly. This also ties to how quickly and how often your employee relations team (this might be your HR professional, line managers, supervisors, etc) responds to both positive and negative employee situations.

How: Create templates with a lexicon of words, easy to implement processes, terms and dates that every ER team member understands and can commit to and every employee comes to expect.

Potential KPIs:

  • Time to respond to an internal complaint lowered
  • Number of communications (town halls, walk-arounds, emails, calls, logins) increased
  • Adherence to steps in the communication plan


Employees need to feel valued for the job they are doing. People who are paid at industry standard, or slightly above, feel better about their jobs than those who receive less than market rate for the same work (obviously). And while this is rarely an easy decision to get by the CFO, it still does matter a whole lot in the long run. You can check sites like Glassdoor and even the job ads of competitive firms to discover whether you are leading or lagging when it comes to compensation.

How: This will vary from organization to organization, but some common ways to compensate individuals more without spending too much additional cash include work flex hours, job sharing options and departmental consolidation of repetitive tasks or skill silos.

Potential KPIs:

  • Monitor competitors’ benefits and compensation data quarterly (+/- compared to yours)
  • Check review sites for negative mentions (KPI is the decrease)
  • Review compensation data for obvious trends and use as a benchmark
  • Review exit interviews. Is comp the reason why employees are walking?


Employees need to feel good about how they are treated. Notice I put this point last. A strong employee relations strategy has little to do with managing complaints but more about everything you are doing to create a positive work environment (see points 1 through 3 above). However, when an employee does comes to HR with a complaint (which is inevitable regardless of how well you execute #1-3) , it’s generally about more than the surface issues. Part of being able to resolve these thorny issues and even diffuse them ahead of time is what keeps HR close to the executive powers that be. So don’t just respond to complaints, set a bar for your team that requires a solution and work backwards. Once you are committed to solving the issue and have communicated that to the employee, you have created trust that will drive additional dialogue.

How: Keep an online (even anonymous) repository of cases from employees. Look for trends. Seemingly unrelated employee relations issues may start to form a pattern when you can look at the data holistically. Your marketing department understands how to stay in touch with customers outside the walls of your building. Follow their lead by staying in touch with employees internally using free and inexpensive tools like MailChimpSurveyMonkeyYammer (similar to internal Facebook) and free and sync-able Google Calendars. Lay out a solution triage to make it easier for busy managers to know exactly what and what not to do.

Potential KPIs:

  • The number of resolved cases in a month
  • Decreasing number of complaints over a time period
  • Increasing number of cases appropriately filed
  • Reducing the number of steps per case

Now you now how to measure employee relations, but what’s the best way to develop a strategy specific to your organization? The HR Acuity team is here to help. We’re available to meet with executives and managers in your organization to analyze and recommend specific day-to-day employee relations strategies and organizational protocols.

We also have a unique ongoing Advisory Program, which is designed to improve overall organizational effectiveness when dealing with employee relations issues and is based on extensive research and ongoing client demand. Each of our clients are appointed an Employee Relations Expert Advisor, who will take responsibility for monitoring cases, conducting capability assessments and facilitating individual skills-based training to ensure the most appropriate outcomes as well as complete record-keeping.

We’re ready when you are to start building an employee relations strategy that benefits your employees and your organization on the whole. Reach out to us to get started.

Deb Muller
Deb Muller

Deb Muller is the CEO of HR Acuity, a technology solution that combines documentation, process, and human expertise so organizations can meet the challenge of managing employee relations in the modern world. Be proactive. Manage risk. Create a safer workplace.

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