eNPS, employee net promoter score, what is eNPS, what is employee net promoter score

Complete guide to employee Net Promoter Score (eNPS)

Recent research on employee loyalty reveals that about 59% of employees rarely recommend their organization as a great place to work.

Hence it is of utmost importance to understand the commitment of your employees to test their engagement and involvement in an organization.

Businesses around the world have always wished to have employees that are devoted; employees who put their earnest endeavors to provide top-notch service to their customers.

The question most employers end up having is, “How do I achieve this level of commitment in my organization?”

“Make promoters off your employees and customers.” Sounds smooth and straight to the point, right? It is!

As simple as it sounds, you don’t just achieve this only by giving your employees a table tennis court or organizing a team outing, or a decent package.

Those are not enough to support and nurture a high-performing culture of engaged employees.

A lot of studies have suggested that more than half of the employees in an organization are unhappy and disengaged from their current work environment.

And having an employee survey once a month containing mundane questions won’t be enough to gauge employees’ level of happiness.

Did I mention that this could be simple, right? But you’re still wondering how do I measure employee faithfulness, and what influences or drives the decision.

Here is the time to introduce the concept of employee Net Promoter Score (eNPS).

What is employee Net Promoter Score (eNPS)?

employee net promoter score, benefit of eNPS

The term eNPS is an acronym for employee Net Promoter Score. It is a concept that provides employees with the right tool to measure employee loyalty and engagement.

Initially, the NPS was a customer service tool, which later became more useful to measure employees’ and customers’ engagement alike.

The eNPS tool measures employees’ possibility to recommend the company to other people as an ideal place to work.

The eNPS tool provides an insight to employers to understand employees’ likes and dislikes as regards to the organization. Debates have arisen as to whether it’s the most ideal and complete way to measure employee loyalty towards the company.

The Employee Net Promoter Score (eNPS) is a new implementation of the previously known Net Promoter Score (NPS). It is a simple way to identify as well as understand how likely it is for your employee to recommend your company to others as a great place to work.

This tool is easy to use, score, and monitor or track your employee’s level of loyalty over time. It also gets completed efficiently as compared to other traditional surveys for employees.

In the course of this guide, we’ll be going into different parts of the employee Net Promoter Score to help you easily measure satisfaction in your organization.

Why should you calculate employee Net Promoter Score (eNPS)?

You might be asking why you should care about the eNPS – I don’t have employees leaving my organization, and my annual survey seems good.

Like your organizations, a lot of organizations run their survey annually, gather hundreds of data points, and don’t bother measuring it as to that trend over time.

With the employee Net Promoter Score, you’re forced to quantify the result. It is common for organizations to pick numbers over time when provided with the chance to, mostly when things are not going as planned.

Measuring a single value reduces your opportunity to choose numbers that make things look better than they are.

eNPS is a fantastic way to reduce the barrier to measuring the health of an organization. In the end, the employee Net Promoter Score is a quick way to measure a company’s culture.
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4 Benefits of the employee net promoter score (eNPS)

    1. It is intuitive

      You design a study that adequately covers every aspect of your organization to your employees. However, not all employees complete the survey – some don’t even bother opening it. You’ve assigned the HR Team to follow up on the process, even with rewards, but nothing seems to work.

      As for eNPS, instead of a long series of questions, it is one single question “on a scale of 0-10. What’s the chance that you’ll recommend your organization to family and friends?”

      Instead of measuring the level of satisfaction of an employee, you gauge their level of commitment – making this method more effective.

    2. It is easy to use

      You don’t need to invest a lot of effort and time in sharing and analyzing the eNPS; neither do you need to be a statistician.

      With the optional follow-up question designed in an open-ended way, you’d dig deeper into your employee ratings. All you need is necessary mathematical and spreadsheet skills.

    3. Employee NPS improves employee satisfaction

      According to Tony Hsieh, CEO, Zappos, “If you figure out how to make employees happy and make customers happy, the business just kind of takes care of itself.

      It shouldn’t be just about delivering happiness. With the help of the NPS employee, your team can now be appropriately structured, with leaders assigned to tasks, and provision of necessary tools and segregation of individual roles.

      Caring about employee satisfaction ensures that you have created an environment where the employees can garner positive growth.

    4. Increases Employee Retention

      Hiring talents and on-boarding them is usually expensive, both economically, and time spent. It is essential to always be on the loop as to what your employee’s attitude towards your business is.

      When the employee starts feeling less challenged or not recognized as they’d want to, they leave.

Carrying out an eNPS at regular intervals will help monitor the changes as well as the patterns in employee behavior. You can avoid a problem when you find the root cause.

How to calculate employee Net Promoter Score (eNPS)?
eNPS, benefit of NPS

Before we go into the eNPS survey question, let’s look at a bit of its history.

At first Net promoter score was restricted to quantifying the relationship of customers in an organization.

It soon became apparent that for an organization, it’s employees are no less than it’s customers.

And the same Net Promoter score would be an efficient way to measure employee happiness.

The NPS introduced by Fred Reichheld is used by at least 69% of the fortune 1000, as per this HBR article. Results from these surveys have been correlated to revenue growth as well.

Like the Net Promoter Score (NPS), the eNPS was built around the same concept initially developed by Fred Reichheld, Bain and Co., and Satmetrix in the 1990s.

A simple question,” “On a scale from 0-10, how likely are you to recommend our product/service to your family or friends?”

Like the NPS, the eNPS relates to the same survey question, but with a twist that helps organizations measure employee commitment. “On a scale from 0-10, how likely are you to tell your friends and family about our organization?”

Similar to the NPS, there are three categories to the answers:

  • 0-6: Detractors, this set of people are completely unhappy and dissatisfied with things in the organization and end up spreading negativity with word of mouth.
  • 7-8: Passives, this set of people are not sure about what they feel – they are neither emotionally invested nor disengaged.
  • 9-10: Promoters, this is the group of extremely faithful employees to your organization, and they will do what it takes to spread positivity.

Promoters

You can refer to a respondent as a promoter if he/she scores the organization from 9 to 10 on the survey (eNPS).

However, employers shouldn’t be relaxed when they see a 9 or 10 in almost all of their responses. It’s easy to assume that those employees that have given this score to your organization are delighted, and there won’t be a need to focus on them.

However, the organization should focus on its strength while working on the weakness.

Reach out to your promoters; understand what made them give you their respective score. What drives their motivation, and what is the exact reason for them to value your organization?

Passives

Someone who scored the organization either 7 or 8 is considered to be on a neutral ground or considered as passive.

These are passive sets of respondents as they won’t say anything good about the organization; neither will they say anything wrong about it.

This set of employees are generally satisfied, but since they don’t affect the feeling of the organization directly, only little emphasis is given to them.

The question is, “should an organization ignore this set of employees?”

Although while calculating the eNPS, this score is not considered, it shouldn’t be ignored. Work consistently to make these sets of employees into promoters.

Instead of asking them the simple question, you can ask, “What stops you from telling your family and friends about this organization?”

Pay attention to creating a culture of feedback in your organization where anyone in the organization can express themselves freely.

Detractors

You can call a respondent detractor when the answer they give on the eNPS question is between 0 and 6.

What does this mean? The score implies that the employee is extremely unhappy about the organization. Some things bother them, and it is your duty as an organization to get to the root of the issue.

The first step needed should direct towards finding out why these employees are unhappy and the reason for their poor feedback.
Something is disturbing these employees, and you need to find out what it is. Find out what’s on their mind, tell them not to be scared, and to share what they think.

You should have a system that automatically sends a “what is wrong” kind of question to the respondent’s email immediately after negative feedback is given. You need to show the employees how valuable their feedback is to the organization by implementing the required changes.

Example of employee Net Promoter Score (eNPS)

Below is the formula to calculate the eNPS

(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100
To explain further, let’s make use of an example. ABC Corporation has 100 employees, and these are the following results you got:

  • 65 people answered 9-10 (promoters)
  • 10 people answered 6 or less (detractors)
  • 25 people answered 7-8 (passives)

The calculation would look like this:
(65 — 10) / (100) x 100 = eNPS score of 55

How to improve your eNPS score?

Track eNPS internally overtime

As stated, eNPS is an ideal way to measure the “happiness” of employees overtime. It is recommended that you improve the internal score instead of paying attention to the right benchmark. Every company is unique.

This implies that you need to treat your eNPS as necessary as a runner who views a result at a track meet would. They might not be the first to reach the finish line, but they are always working to beat their current score.

eNPS Guides strategy (PRIMARILY)

Although the employee net promoter score can help direct a firm towards tactical changes, its primary goal is to guide strategy. For promoters, you put energy to find out why they love your company. For the promoters, you can put resources to find out what the roadblocks for them are. For the detractors, try to find out the real issue.
The nature of only asking a single follow-up question brings to light the significant reasons someone gave the score. There’s not much fluff in an employee net promoter score.

HOW OFTEN SHOULD WE SEND IT?

The answers to this question are dependent on the level of implementation. If you can make the changes quickly, then this should be done quarterly. Different organizations do this twice in a year. If you need something more frequent, use a check-in instead.
However, ensure the results are sent to your team quickly to enforce the changes and implement them. Many organizations will segment the scores by the department. We recommend doing this only if the team size is big enough to obfuscate the person’s identity.

In conclusion

An ideal way to measure an organization’s health is through the help of the employee net promoter score. Make sure to set internal benchmarks at intervals, and continually push for the highest score possible.

Interested in seeing Beamfox can help you increase your eNPS score? Book a demo today.

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