Monitoring employee net promoter score (eNPS) can help you stay ahead of trends like the Great Resignation and Quiet Quitting. Scroll down to know how eNPS works, and how you can make it work for you.
What Is Employee Net Promoter Score (eNPS)?
Employer Net Promoter Score, abbreviated as eNPS, is a rating methodology meant to assist companies in measuring employee happiness and loyalty by contrasting detractors with promoters and excluding neutral individuals.
Traditionally, the Net Promoter score quantifies a customer’s engagement with a business. This similar mentality can be applied to employees, who are perhaps your most important customers. Over sixty% of Fortune 1000 firms employ the net promoter score, which was initially described by Fred Reichheld throughout this HBR article.
This metric was first employed to quantify customer loyalty, and its simplicity helped it gain popularity. eNPS survey results have also been connected with revenue growth.
How to Calculate Employee Net Promoter Score (eNPS) Using HR Tools?
An employee net promoter survey provides one question to gauge employee engagement: “On a scale of zero to 10, how probable is it that you would recommend this organization as an employer?” Employee responses range from 0 to 10.
The responses are then organized into the three categories mentioned below:
- Promoters: Employees who respond with a 9 or a 10
- Passives: Employees who respond with a 7 or 8
- Detractors: Employees who answer between 0 and 6
An HR analytics tool will automate the survey process, do the analytics on your behalf, and calculate the buckets automatically.
Promoters are contented individuals who positively contribute to the advancement of the company’s image and progress. Their input might provide valuable insights into the factors that positively impact their employment experience.
Neutral individuals are typically content with their work environment but are receptive to opportunities from other companies. Nonetheless, they will not attack/criticize the organization. The responses of neutrals are not included in the eNPS calculation. Nonetheless, assessing neutral employee mood is essential, as it enables HR to adopt tangible and pragmatic modifications.
Detractors are workers who are hesitant to recommend the organization as a great place to work. The likelihood of detractors quitting the company is significant; therefore, prompt action is required to stop this from happening. Gathering and analyzing this input is crucial for lowering employee turnover and associated costs.
The eNPS equation is very simple:
Promoter % – detractor % = eNPS score (absolute +/- value)
To calculate the eNPS rating of your company or a particular department, you must first:
- The % value of promoters among the total pool of respondents
- The % value of detractors among the total pool of respondents
Next, subtract the proportion of detractors from the percentage of promoters. Suppose your company has 25 workers, and they all complete the eNPS survey. 6 (24%) of the 25 workers are detractors, 10 (40%) are neutral, and 9 (36%) are promoters, as shown by the survey findings.
24% of your staff are detractors in this case, whereas 36% are promoters. The 40% neutral workers are excluded from the eNPS calculation.
36% – 24% = 12 or +12
HR technology tools complete this entire calculation automatically and can present eNPS changes over time using a graph or dashboard.
What is a Good eNPS in 2022-23?
eNPS is an excellent method for assessing employee “happiness” statistically over time. We advise focusing on improving an internal organizational score rather than determining the appropriate benchmark. Remember, every company is unique. However, for your reference, it can be useful to remember eNPS statistics across industries and organizations.
While industry-specific average eNPS scores might vary, a strong eNPS score is normally anything above 30. In fact, anything over 0 is regarded as acceptable, above 20 as favorable, and beyond 50 as outstanding.
Importantly, CultureAmp reports that employees in government and entertainment are less engaged, while those in design and computer & network security are more engaged in 2022.
Why is Employee Net Promoter Score Important?
By asking eNPS-led questions, managers are able to gauge the overall loyalty and commitment of their workforce. Numerous organizations like the ease of the Net Promoter System and eNPS polls are often shorter and require less time to complete. In addition, when you solicit employee feedback on your company’s performance and take action based on that feedback, workers perceive that business leaders respect their opinion.
Employee Net Promoter Score is often a leading sign of whether or not your top talent is satisfied. By delving further into the survey replies, you may also determine why top achievers are more involved with your organization.
It is essential to carefully examine each and every response to the open-ended “why” query or consequent question in the survey. The replies provided are what really aids in identifying HR goals to enhance employee engagement and happiness.
People appreciate eNPS surveys for a variety of reasons, but the capacity to identify problem areas within the company always sticks out. For instance, are there any particular managers whose teams are disengaged? If your organization has effectively utilized eNPS to identify the root causes of employee (dis)satisfaction and taken the appropriate actions to address them, the repercussions will be felt across the entire organization.
Steps to Improve Employee Net Promoter Score
Here are a few actionable tips to improve eNPS:
1. Ensure anonymity
Provide a “safe” environment for employee feedback. Partnering with a 3rd-party HR technology provider may often be beneficial. The absence of anonymity might cause employees to withhold truthful information out of fear of reprisal.
2. Turn to social
Examine employer review sites such as Glassdoor, Indeed, Comparably, Careerbliss, and Vault to determine what workers are saying about you. What you find may be highly informative.
3. Communicate outside of eNPS surveys
Establish periodic evaluations with the manager of each team, who will subsequently conduct evaluations of each of his/her workforce. It is crucial to discuss what is working well and what is not, even outside of the annual survey cycle.
4. Invest in happiness
When individuals feel contented, healthy, and involved, they are much more inclined to find interest and delight in their work. You may demonstrate your concern for your workers by providing them with excellent health advantages and education reimbursements, as well as professional development courses and other incentives.
5. Go hybrid
If your organization enables telecommuting or flexible scheduling, using these options is an additional way to boost morale by allowing workers to spend more time with their families at home while still feeling engaged at work.
6. Hire for culture
Whenever it comes to increasing employee NPS ratings, selecting the appropriate team members is essential to ensure that their perspectives coincide with your organization’s culture and basic values. It is crucial to foster an atmosphere in which individuals may flourish, since values and culture will influence every connection, and, thereby, relationship.
7. Provide digital enablers
By digitizing operations, it frees up a great deal of time for individuals to focus on more important tasks. Whether they’re working from a distant location or wish to e-meet with teams/customers in various areas, technology helps individuals stay in touch with one another.
8. Close the loop
If workers have identified a particular issue within the business, be sure to address it and convey the resolution to them (with sufficient supporting evidence that the matter is of serious consideration to you). As a result, in the future, individuals will be more eager to provide you with feedback.
eNPS Challenges: Why it is Not a Fool-Proof Metric
eNPS score reflects just one aspect of employee happiness and satisfaction. What this means is that HR must not depend just on eNPS to measure employee engagement. A standard NPS survey only covers descriptions between 0 and 10, leaving the intermediate points up to interpretation. Typically, employees have a more intricate and layered association with their organization than customers do. This may obscure eNPS outcomes.
In addition, there are difficulties with both data collection (the wording of the inquiry and the scale) and assessment (sample size, distribution, as well as volatile deviations).
That is why it is important to have an HR data analytics tool in place. Modern HR tech can help execute eNPS surveys with ease and get accurate insights into employee engagement, without letting bias or statistical complexities get in the way.