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IHE Elevates Article

2025’s Must-Track KPIs for Leading High-Impact Teams

As Q4 approaches and planning for FY25 begins, building high-performing teams is no longer optional—it's essential for staying competitive and sustainable. High-performing teams fuel innovation, boost productivity, and reinforce company culture, creating an environment where employees feel motivated, engaged, and empowered.

To make this happen, leaders must focus on three critical key performance indicators (KPIs):

  1. Employee engagement and retention
  2. Team collaboration and communication
  3. Overall well-being

These KPIs are the heartbeat of an organization’s ability to thrive and achieve long-term success. Read on to discover why these metrics are crucial and how you can prioritize them for a breakthrough year.

KPI 1: Employee Engagement & Retention

Employee engagement is a well-established driver of productivity, performance, and retention. When employees feel engaged, they are more likely to stay with the company, reducing the costs associated with turnover. 

Research from Gallup reveals that highly engaged teams show 21% greater profitability,” and companies with high engagement scores experience “59% lower turnover” in low-turnover industries and 24% in high-turnover ones.

According to data from the IHE Elevates program, organizations that focused on enhancing engagement reduced turnover by 8% in one year, saving $866,916 in burnout-related costs.

How to Measure Engagement

  1. Engagement Surveys: Use quarterly surveys to gauge employee satisfaction, sense of purpose, and overall engagement.
  2. Turnover Rate: Keep an eye on your organization’s turnover rate and compare it to industry benchmarks. High turnover can indicate low engagement.
  3. Retention Costs: Measure the financial impact of retaining employees versus recruiting and training new hires.

Key Strategy

One of the most effective ways to boost engagement is by adopting “human-centered leadership.” This involves focusing on relationships, recognizing individual contributions, and ensuring that every employee feels heard and valued. Leaders who are present, approachable, and empathetic can foster a culture of trust, which is critical to keeping teams motivated and engaged.

KPI 2: Team Collaboration & Communication

Collaboration is the cornerstone of innovation and operational efficiency. Without strong communication and teamwork, even the best strategies can falter. Teams that communicate effectively are not only more productive but also more adaptable to change—an essential trait in today’s evolving business landscape.

A report from Deloitte found that “high-performing teams collaborate 2.5 times more than lower-performing ones,” and “86% of employees and executives cite lack of collaboration as the leading cause of workplace failures.” 

IHE Elevates programs have shown significant improvements in team dynamics, with 93% of employees reporting better collaboration after implementing their training.

How to Measure Collaboration

  1. Project Completion Rates: Monitor the speed and quality with which cross-functional teams complete projects.
  2. Employee Feedback: Regularly ask employees how they feel about the level of collaboration within their teams and across departments.
  3. Innovation Metrics: Track how often teams contribute new ideas or develop solutions to existing challenges.

Key Strategy

Building a culture of collaboration requires more than just open lines of communication. Leaders should establish clear channels for feedback and encourage cross-departmental projects that break down silos. Implementing skills like regular team check-ins can ensure that everyone is aligned and working toward common goals. It’s also essential to recognize and celebrate collaborative efforts to reinforce their importance.

KPI 3: Well-Being & Emotional Recovery

Employee health goes beyond just the physical. Emotional and mental wellness are critical for maintaining high performance and preventing burnout. Teams that feel supported in these areas are more likely to thrive, resulting in better focus, creativity, and long-term loyalty to the organization.

Research from Harvard Business Review shows that organizations with strong well-being programs experience a 62% reduction in burnout and 20% increase in employee engagement

IHE Elevates shows a significant reduction in emotional exhaustion among teams that focused on developing well-being support skills, resulting in a notable improvement in overall performance.

How to Measure Well-Being

At IHE Elevates, we recognize that achieving peak performance, thriving, and resiliency requires not only unique leadership skills but also a deep commitment to fostering an environment built on trust, respect, compassion, and teamwork. Our approach integrates three powerful programs that equip leaders and team members to practice these skills daily, effectively bridging the gap between what we aspire to achieve and the current reality.

To ensure measurable progress, IHE has developed the Metric for Humanity, a validated assessment tool that focuses on the desired state of thriving and resiliency. This tool assesses key elements of team and organizational climate that influence peak performance, engagement, outcomes, and trust—providing valuable insights that guide actionable solutions aimed at fostering thriving, resiliency, trust, and teamwork.

Key Measurement Areas

  • Burnout Quantification (Emotional Exhaustion): Evaluates the extent of leader and team member burnout, identifying opportunities for intervention.
  • Emotional Recovery: Assesses the ability of leaders and team members to bounce back from stress and maintain resilience.
  • Emotional Thriving: Measures whether individuals are performing at their best and thriving in their roles.

By leveraging this critical measurement tool, organizations can gain a clear understanding of their current state and tailor solutions to drive sustainable cultural transformation and resiliency—ultimately enhancing both individual and team performance, organizational outcomes, and key performance metrics.

Key Strategy

Leaders should prioritize well-being initiatives that integrate physical, mental, and emotional support into daily operations. This can include wellness programs, mental health days, and providing resources like counseling or meditation sessions. Additionally, creating an environment where employees feel safe expressing their challenges or requesting support is crucial for reducing burnout and fostering resilience.

Driving Growth and Sustainability Through High-Performing Teams

In 2025, the most successful organizations will be those that put their people first. By prioritizing employee engagement, cultivating collaboration, and supporting well-being, leaders can build high-performing teams equipped to drive both growth and sustainability.

The key is understanding and tracking the right KPIs. When strategies align with these metrics, organizations enhance team performance while building a resilient, thriving workforce ready to navigate future challenges.

Ready to improve these KPIs in your organization? Contact IHE Elevates for a free consultation and discover how human-centered leadership can transform your team’s performance.

Key Take-Aways

2025’s Must-Track KPIs for Leading High-Impact Teams

A Call to Action for Visionary Leaders: Empowering Teams for Peak Performance and Well-Being

Moving Beyond Burnout to Rebuild Team Performance in Healthcare

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