Employee Net Promoter Score (eNPS)

Employee Net Promoter Score (eNPS)

What Is Employee Net Promoter Score (eNPS)?

An employee Net Promoter Score (eNPS) can measure employee loyalty based on a Net Promoter Score. It allows you to determine how likely your employees will recommend their work to their friends and family.

It is great to have staff that is dedicated to your organization and loyal to it. The employees at your company go above and beyond to make your customers happy by providing exceptional, incredible service.

Net Promoter Score is praised because it is compact, prevents survey fatigue, is easy to calculate the results, and enables benchmarking and repeating it at sufficient intervals due to its simplicity. All of these attributes result in employee NPS being more efficient.

A combination of employee Net Promoter Score and other HR metrics gives you a better understanding of why employees provide negative feedback. It will provide insight into why they perform poorly and how to improve it. Additionally, you can find out if they are motivated enough to work for your company.

What is the importance of your eNPS?

To increase your eNPS score, you should measure it and work consistently to improve it. This survey provides an accurate indicator of employee satisfaction across your organization. Employee experience refers to how employees feel about their employers' interactions with them. Employee experience is influenced by various factors, such as the company's physical space, company culture, and the technology available to employees.

Positive employee experiences are highly effective at enhancing employee engagement and productivity.

Employees who feel that their work environment is positive are likely to be proactive and use creative problem-solving techniques to resolve issues.

An effective EX is associated with low absenteeism rates across the company. When employees are happy at work, they are not continually seeking reasons to take time off.

As a result of enhanced employee engagement, team loyalty can be increased, thereby reducing turnover costs. A few of these costs are:

  • A vacant position's marketing cost
  • An employee's hiring cost
  • New employee training costs
  • Costs related to lower team morale and lower productivity

You can prevent these costs and maximize profitability by keeping an eye on employee engagement and taking the necessary steps to ensure their happiness.

How do you calculate eNPS?

The Employee Net Promoter Score (eNPS), similar to the Net Promoter Score (NPS), is calculated based on two questions. On a scale of 0-10, whether they agree that the entire organization they work for would make a suitable place to work or a good employer. 

Employees are asked, in the second question, what they believe led to the employee rating. The eNPS survey scores respondents based on their answers to the first question, categorizing them into three groups: promoters (scores of 9-10), passives (scores of 7-8), and detractors (scores below 6).

Your eNPS score is calculated by subtracting the detractors' percentage from the promoter's percentage, which ignores passive workers (who have ratings between 7 and 8).

Using an 11-point scale aligned with NPS values can offer insights into the following:

Promoter: 

It is the person who is most favorable, satisfied, engaged employees, and motivated at your company. Your brand advocates and ambassadors are your biggest supporters.

Passives: 

It is neutral to classify employees as passive. No matter how sad or happy they are, they are not the happiest. They measure customer loyalty to the organization as usually weaker than the promoters.

Detractors:

Their ratings depict their disengagement from your organization, and they will not recommend you to their friends and families or to any of their business or personal contacts.

eNPS = % Promoters – % Detractors

NPS calculation examples

Example A

Consider a company with 30 employees.

The promoters are 10, the passives are 10, and the detractors are 10.

Passive scores are not calculated using it. You should, however, determine the number of employees at your organization - passive, promoters, and detractors.

The percentage of detractors is equal to the percentage of promoters, so the percentage of promoters is zero. You have an eNPS of 0.

Example B

According to the most recent employee survey conducted by your company, there are 114 employees: 24 promoters (21%), 56 passives (49%), and 34 detractors (30%).

Calculation of the next step ignores passives.

There are 21% of promoters and 30% of detractors, which equals -9%.

A higher employee net promoter score indicates a company's ability to engage its employees since it should aim for more promoters than detractors.

What is a good eNPS score?

good eNPS score

Generally, an organization's employee Net Promoter Score ranges from -100 to 100. To gauge the success or failure of an eNPS survey, each company needs to learn the benchmark for their industry. It will enable them to compare their results to the benchmark.

The eNPS scores can range considerably from one industry to another. However, as stated above, a general rule of thumb is that anything above 30 will be considered a good score, and any score above 50 will be considered excellent. You're better if you have a high eNPS score. An eNPS score of 8.5 indicates you're doing well.

It's important to note that low eNPS does not result in low engagement. It is, however, good to see your eNPS score regularly increasing, which means that you should keep it up. Similarly, a decreasing eNPS score indicates that your HR team needs to determine why it's going down and come up with a plan for improving it.

Pros of Employee Net Promoter Scores

Easy and fast to measure eNPS

One of the biggest advantages of employee net promoter scores is their ease of use and ability to measure and obtain results quickly. The additional benefit of using a scale of 0-10 is that managers need to spend less time researching survey questions or developing the accompanying answers because employees only have to rate on a scale of 0-10.

The eNPS metric is easy to use

Employees don't need to know anything about the Net Promoter Score to get engaged. Unlike some other employee engagement tools, eNPS is easy to explain and "sell" to them. All your company (the employer) wants is what your employees think and if they would recommend working there to their friends.

Additionally, it removes the fatigue associated with surveys. Employee feedback from the eNPS survey provides a lot of insight into employee engagement, with minimal employee involvement (action/tasks).

eNPS is straightforward

Employees have a better understanding of customer NPS than some employee engagement tools they may need to be more familiar with. To find out how your employees feel about you and whether they would recommend your organization to others, you (the company) conducted this survey!

In addition, it reduces survey fatigue. In addition to providing valuable and honest feedback about employee engagement, the employee NPS survey also requires employees to perform minimal tasks.

eNPS is affordable

Your employees' engagement levels should take you less than a month to figure out. Employee Net Promoter Score is a favorite among many organizations because of its cost-effectiveness. You need only send one email to start using the eNPS platform, making it very easy to measure (financially and time-wise).

Additionally, managers can monitor the performance of their employees regularly by using this simple tool, which allows them to track how their businesses are performing.

eNPS records more participation than surveys

Anxiety, stress, fatigue, and nerves are common emotions when employees hear about surveys. Traditionally, surveys are lengthy, frustrating, and time-consuming, leading to survey fatigue. Thanks to eNPS, it's the opposite! 

It takes up to a few minutes to complete the employee Net Promoter Score form (Would you recommend us as a great place to work to your family and friends, OR what explains your rating)?

An eNPS survey is easy to complete if you send your employees an email with an announcement saying, "It won't take more than five minutes of your time." Employees respond by saying, "That's great!" and providing their responses.

Cons of Employee Net Promoter Score

The simplicity of the employee Net Promoter Score makes it stand apart from other types of key performance indicators. It contains only one question, however, which may limit its application.

Employees will only be able to determine whether team members are promoters, neutrals, or detractors from the results of this survey. It will be difficult for you to understand why these members behave in such a manner.

If you use the eNPS alone, you may not be able to produce the results you want. Therefore, it is recommended to include it in a larger feedback program.

You can also ask follow-up questions about the eNPS in a survey. However, it is essential to know the employee's score to ensure you're asking the right questions.

Effective ways to improve your eNPS

After taking the eNPS questions for the first time, you will receive your results. Your company has a score of 10. This is a good score - but it could be better. If you look at your employee net promoter score, what can you do to improve it next time?

Measure your NPS regularly‍

A regular employee net promoter score cycle allows you to monitor trends while normalizing the process. Sending your surveys too far apart will make it difficult to determine the changes associated with the scores. 

Be honest about your eNPS 

Make sure your staff is aware of your results. It is more beneficial for your employees to feel included and invested when you disclose your company's employee net promoter score. Also, be courageous when it comes to facing negative feedback. You should invest in engagement rather than ignoring low results to show employees you are serious about improving them.

Be bold and follow up with a pulse survey.

‍Additionally, if your most recent employee engagement score shows significant growth or decrease, we recommend not running longer employee engagement surveys after every eNPS cycle.. You can learn more about your score and learn what it doesn't account for by conducting longer or more specific surveys.

Take action 

By acting upon your past eNPS, you can ensure you improve your current one. Employees deserve to know their opinions are valued, heard, and understood. It is therefore highly recommended that you include that follow-up question (otherwise, you will need to know where the action is needed).

How often should you measure eNPS?

It depends on your organization's challenges and those faced by your employees to decide how often you should deploy the eNPS feedback tool. You should conduct your company's eNPS surveys annually, at the very least.

It makes sense to run employee Net Promoter Score rollouts more frequently in high-intensity industries so that you can monitor and measure employee engagement.

Most industries are effective at measuring eNPS once a quarter. Additionally, eNPS surveys can be used after policies and incentives change in a company to determine the effect those changes have on improving employee engagement.

The shorter time it takes to complete them makes it easier to complete them more often than comprehensive surveys, which take hours. You may suffer from questionnaire fatigue if you send out these surveys more often than once a month.

Conclusion

Employee net promoter score (eNPS) is useful for evaluating employee satisfaction. It is calculated by asking employees how likely they are to recommend their employer to friends or family. eNPS can be used to identify areas of improvement for businesses and to benchmark company performance against others. A high eNPS indicates that employees are happy with their job and are likely to promote the company to others. This, in turn, can lead to improved customer satisfaction and higher retention rates.

Employee Management