What is employee net promoter score (eNPS)?
Employee net promoter score (eNPS) is a metric that assesses employees’ job satisfaction by measuring their readiness to recommend their company to others.
The eNPS consists of the following question:
On a scale of zero to ten, how likely is it that you would recommend working for our company?
After employees rate their company, HR divides them into:
- ‘promoters’ – (9-10)
- ‘passives’- (7-8)
- ‘detractors’ – (0-6)
The formula for eNPS is:
(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100
Anything between 10 and 20 is reasonable, between 20 and 30 is good, and 40 to 50 is outstanding.
Example calculation – If 60% of the employees scored 9-10 (promoters) and 20% of the employees scored 7-8 (passives) and an additional 20% scored
0-6 (distractors) the overall company eNPS score is 60-20=40. This company is on the low end of an outstanding eNPS
Why should HR leaders care about eNPS?
eNPS data also helps HR leaders gauge employees’ loyalty and find ways to deepen it. Implementing changes based on eNPS data can promote:
Moreover, incorporating data-driven developments can help attract talented new employees. According to a 2012 Jobvite study, for example, employee referrals lead to the highest amount of new hires, at 39.9%.
What can HR leaders do to implement an eNPS effectively?
HR leaders can effectively execute the eNPS survey, dissect the results, and craft a plan to implement new changes. The following steps can lead to a successful implementation of the eNPS system:
- Craft the eNPS survey. Including room for open-ended answers allows employees to explain the reasoning behind their ratings, thereby providing HR with valuable insiders’ information. If HR adds questions to the basic version of the survey, it’s essential to disclose the survey length to employees beforehand so they’ll address each query with thoughtfulness and care.
- Organize the results. Filtering the data through various methods enables HR to refine the results for a thorough analysis. For example, dividing the data based on employees’ department, length of employment, or role, helps HR strategically approach issues and determine which are company-wide or relevant to specific groups.
- Involve employees in the process. Companies usually run eNPS surveys every three to six months. This continuous process is an opportunity for employees to offer constructive feedback, collaborate with managers, and share in the collective responsibility. Employee involvement raises the level of employee engagement and loyalty.
- Use the results to make positive changes. It’s critical to read each employee’s survey answers and use their feedback to increase successful practices and adjust ineffective ones. HR leaders and their teams can create plans that will address detractors’ feedback and glean what led them to rate their company so highly.
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How does eNPS improve company culture?
eNPS helps HR leaders monitor employee loyalty towards their company. Using the eNPS metric to increase engagement, HR can boost employee wellbeing and job satisfaction in the workplace. Improving employees’ experiences in the workplace can build a workforce of motivated, happier individuals who contribute positively to the company culture. Companies in the top quartile on employee engagement, significantly outperform those in the bottom quartile. According to Gallup research, companies with high eNPS scores have 81% lower absenteeism, 18% less turnover (in high turnover jobs), 43% less turnover (in low turnover jobs), 23% higher profitability…