Employee Net Promoter Score (eNPS) is defined as a concept built around the Net Promoter Score (NPS) to measure employee loyalty. It is a method of measuring how willing your employees to recommend their workplace to their family or friends.
Imagine having employees in your organization that are dedicated and loyal to your organization. Imagine having a team of employees going above and beyond to provide exceptional incredible service to keep your customers happy and improve customer satisfaction.
Employee Net Promoter Score gets praises for it is compact, prevents survey fatigue, ease of calculating the results, and the ability to benchmark it, and repeat it at sufficient intervals because it is simple. All these attributes certainly put eNPS in a more efficient place.
However, if you combine eNPS with other HR metrics, you will know why employees gave negative feedback. It will uncover the reasons behind their performance and help you with ways to improve it. You can also find out if they feel motivated enough to work in the organization.
eNPS is built around the same concept as Net Promoter Score (NPS), originally developed by Fred Reichheld, Bain and Co. and Satmetrix in the 1990’s. NPS is used to measure customer loyalty, whereas eNPS indicates employee loyalty.
NPS is calculated based on the responses to the question:
“On a scale from 0-10, how likely are you to recommend our product/service to your family or friends?”
eNPS is calculated based on the responses to a similar survey question. Instead of products and services, eNPS question help organizations measure employee loyalty:
“On a scale from 0-10, how likely are you to recommend our organization to your family or friends?”
As with NPS, the eNPS answers are divided into three categories:
- 0-6: Detractors, employees who are highly dissatisfied with the organization and spread negative word of mouth.
- 7-8: Passives, employees who are neither emotionally invested nor disengaged.
- 9-10: Promoters, extremely loyal employees to the organization, and spread a positive word around.
A respondent is considered a promoter when he/she gives a score of either 9 or 10 on the employee Net Promoter Score question.
Employers should not get relaxed if they see a 9 or a 10 in most of the responses. It’s easy to think that the employees who have scored your organization high are already happy, and you don’t need to focus on them.
However, organizations should stay focused and use the promoters’ feedback and see why they like the organization and the exact reason they have mentioned to refer your organization to their friends and family.
A respondent who has scored you between 7 and 8 is considered to be passive or neutral.
They are considered passive because it is assumed that they are neither going to promote the organization or say anything negative. It is a more neutral behavior that they display. They are generally satisfied, but since they don’t directly affect the organization’s feelings, not much emphasis is given to them.
But does this mean that an organization should not pay attention to them or ignore them because they cause no harm? If an organization has a similar attitude, then they need to change it immediately. Even though their score is not considered while calculating eNPS, don’t ignore their feedback. Consistently work to make them promoters. Your end goal should convert them to promoters.
What you can do instead is ask them a simple question, “What is that one thing that is holding you back from referring your family/friends to this organization?”
More than anything, create a culture of feedback in your organization where anyone can share or express freely.
A respondent is a detractor when he/she gives a score between 0 and 6.
What does this score mean? It means the employee is extremely unhappy about the organization. Certain things are bothering them, and you, as an organization, need to get to the root cause and identify the issues.
The first step is to find why they are not happy and the reason for poor feedback. Something is bothering them, and you need to get to the bottom of it. Find out what’s on their mind, tell them not to be scared, and to share what they think.
Whenever you get negative feedback from an employee, it should induce a mechanism where the dissatisfied employee is sent an email immediately asking what went wrong or why is he/she not happy with the organization. You need to genuinely care and send a message to the entire organization that their feedback is valuable by implementing the changes they want in the organization.
High employee attrition is terribly annoying and painfully expensive. One step in the right direction can save organizations from gaining a bad reputation and a low employee net promoter score.
The employee Net Promoter Score is the number of promoters minus the number of detractors divided by the total number of respondents multiplied by 100.
Therefore eNPS formula is:
eNPS= No. of Promoters – No. of Detractors/Total No. of Respondents x 100
Nationwise eNPS Calculation Example:
Let’s take an example – Company X wants to know about their employee satisfaction and loyalty in their office in North and South American. They send employee Net Promoter Score survey to their employees working in the offices in these regions.
They receive 5000 responses from employees in North America and 1000 responses from LATAM employees.
Let’s break down these responses.
You have received a total of 5000 responses (North America)
- 100 responses were in the 0–6 range (Detractors)
- 500 responses were in the 7–8 range (Passives)
- 4400 responses were in the 9–10 range (Promoters)
Using the eNPS formula: 4400-100/5000 *100= 86
Employee Net Promoter Score is always shown as a whole number and never as a percentage. Hence your eNPS is 86.
You have received a total of 1000 responses (LATAM )
- 400 responses were in the 0–6 range (Detractors)
- 100 responses were in the 7–8 range (Passives)
- 500 responses were in the 9–10 range (Promoters)
Using the eNPS formula: 500-400/1000 *100= 10
Employee Net Promoter Score is always shown as a whole number and never as a percentage. Hence your eNPS is 10.
From the calculation above, it is evident that the organization needs to analyze the reasons behind a low eNPS score.
Regionwise eNPS Calculation Example:
The same organization conducts employee Net Promoter Score surveys for employees in North America’s six regions.
They receive the responses and calculate their employee Net Promoter Score (eNPS) the formula. Following were the scores:
eNPS for Region 1: 80
eNPS for Region 2: 90
eNPS for Region 3: 90
eNPS for Region 4: 80
eNPS for Region 5: 90
eNPS for Region 6: 60
Clearly, from the eNPS score region, 6 needs improvement in employee satisfaction to get a higher eNPS score.
Citywise eNPS Calculation Example:
Let’s assume that the same organization has five offices at different locations in the same city and they want to know the eNPS score for all of their offices. They send out a survey to all the employees in the five different locations, and the following are the results obtained applying the eNPS formula:
eNPS for Office 1: 80
eNPS for Office 2: 90
eNPS for Office 3: 60
eNPS for Office 4: 90
eNPS for Office 5: 80
Since the eNPS score for office 3 is 60, they will need to improve their employee experience and employee satisfaction to improve their eNPS score.
Employee Net Promoter Score (eNPS) calculation can be implemented at various levels as shown in the above examples.
Learn more: Net Promoter Score Calculation and How it Works
Employee Net Promoter Score may also be subject to cultural differences, and the scores may vary in different regions or countries, with employees less likely to give a high score. eNPS doesn’t always provide information subjected to the context.
Pertaining to these issues, many experts discourage considering other companies or industries as benchmarks for eNPS. On the contrary, experts say that organizations should start with a score and work on improving it.
There are fair chances that the eNPS of an organization may be lesser than the NPS, as the employees who work for an organization expect more from it than customers do. This awareness can help organizations interpret employee Net Promoter Score.
However, here are some tips on how to use the eNPS effectively to get better results:
1. The management of your organization should know why the survey is being administered to the employees. The methods of following up once the responses are collected should be pre-determined.
2. The survey will yield better results if it is responsive and can be accessed even with hand-held devices like tablets or mobile phones so that employees can answer them quickly and easily.
3. At any given point in time, the survey should be anonymous. Employees should be guaranteed that their identities are not at stake. As an organization, if you fail to give them this assurance, the results will be diluted. You will not receive unbiased responses from your employees.
4. Employee happiness isn’t a one-time business. If you can’t remember the last time you asked your employee if they were happy in the workplace, then the time to ask is now! Employee engagement and employee satisfaction are the two pillars of an organization and employers should be able to track it from time-to-time. Experts suggest that these surveys should be sent out quarterly, that’s frequent enough that the employees won’t be irritable about filling it.
The importance of eNPS cannot be denied. Here are the benefits of calculating Employee Net Promoter Score:
1. It helps your gauge overall employee loyalty: Employee Net Promoter Score is a quick way to measure employee engagement, the health of the organization and the best thing about this is, it beats the traditional long boring surveys hands down. Thus, help in gauging the levels of employee loyalty by asking just one survey question.
2. Reduce employee attrition: By measuring eNPS and other HR metrics, organizations will be able to prevent high attrition rates but put together a contingency plan. The responses an organization receives on deploying the eNPS survey will help understand if employees in the organization are happy or not. Thus, corrective measures can be taken immediately.
3. Gives a chance to convert negatives to positives: eNPS survey can help organizations convert their detractors to promoters. It can be done by implementing specific changes in the system. Every time you receive a negative response from your employees, an automatic system would trigger an email, asking about the things that are not going well with them in the organization. Collect feedback and make sure to act on it.