In the not-so-distant past, a company's reputation and success were primarily measured by one key factor: customer satisfaction. For nearly two decades, businesses have relied on the Net Promoter Score (NPS) to gauge how well their products and services resonated with customers.
However, the notion of corporate success has now evolved, and forward-thinking organisations have come to recognise that there's another critical dimension to consider — the sentiment of their employees.
The path to enhancing your company culture and creating a workplace where people genuinely enjoy their roles is well within reach. But where should you begin when it comes to measuring employee engagement and gauging the impact of your initiatives? The answer lies in the Employee Net Promoter Score (eNPS), an adaptation of the NPS tailored for the workforce.
This comprehensive guide will delve into the Employee Net Promoter Score, its scoring methodology, and how a single question can serve as a powerful springboard for measuring and enhancing engagement within your organisation. 👍
What is an eNPS?
Definition of The eNPS (Employee Net Promoter Score)
The Employee Net Promoter Score (eNPS) serves as a valuable and straightforward scoring mechanism that enables businesses to monitor employee engagement and assess the effectiveness of their efforts in shaping their workplace environment and culture.
In essence, eNPS functions similarly to the widely recognised Net Promoter Score (NPS), which gauges customer satisfaction with a single, straightforward question: "How likely are you to recommend our products or services to a friend or colleague?"
The roots of the Employee Net Promoter Score (eNPS) can be traced back to 2003 when Fred Reichheld, a partner at Bain & Company, the originators of the Net Promoter System, introduced a novel approach to gauge how well organisations treat the individuals they impact and the quality of the relationships they forge with their stakeholders. This metric, known as the Net Promoter Score or NPS®, was born from this concept.
Why employers use Employee Net Promoter Scores
A recent Gallup survey underscores the significance of understanding employee engagement, revealing that companies with highly engaged teams exhibit 21% higher profitability and 17% greater productivity compared to those with disengaged counterparts.
eNPS proves to be a valuable tool for evaluating an organisation's level of employee engagement. It provides insight into the happiness and contentment of your workforce, offering a glimpse into their inclination to remain with the company and advocate for it among their networks.
Apple stands as an early adopter of this metric, employing recurring eNPS pulse surveys over several years to gauge the likelihood of their employees recommending the company as a workplace to others.
How to calculate eNPS (Employee Net Promoter Score)
The eNPS calculation entails categorising employees' responses on a scale of 0 to 10 into three distinct categories:
- Promoters: These are employees who rated the company with scores of 9 and 10, signifying their happiness and satisfaction with the organisation.
- Passive or Neutral: This category encompasses employees who assigned scores of 7 and 8, indicating that they might consider promoting the company but also might express negative sentiments about it.
- Detractors: Employees in this group provided scores ranging from 0 to 6, signalling their dissatisfaction and unhappiness with the company.
Next, calculate the percentage of employees falling into each of these categories and determine their respective shares of the total workforce.
The formula for computing the Employee Net Promoter Score is as follows:
eNPS = % Promoters - % Detractors
This formula yields a valuable metric that can help gauge employee sentiment and serve as a foundation for improving engagement and satisfaction within your organisation.
eNPS vs Pulse Surveys: What’s the Difference?
Both eNPS (Employee Net Promoter Score) and pulse surveys serve as tools to assess employee engagement and satisfaction, they differ in their approach and scope.
eNPS focuses on a single, straightforward question that gauges employees' likelihood to recommend the organisation as a place to work, offering a concise snapshot of overall sentiment.
Pulse surveys, on the other hand, are more comprehensive and versatile, often encompassing multiple questions on various aspects of the workplace, such as leadership, culture, and job satisfaction. Pulse surveys provide a more detailed and nuanced understanding of employee experiences.
In essence, eNPS provides a quick, high-level assessment, while pulse surveys offer a deeper dive into specific areas of concern and improvement.
The Benefits of eNPS for Employee Engagement
There are a whole lot of benefits to implementing eNPS for your organisation. ⬇️
Calculating your eNPS is straightforward
The most significant advantage of the Employee Net Promoter Score lies in its remarkable simplicity.
Managers no longer need to invest long hours in crafting intricate employee surveys, and employees themselves just need to pick their rating on a scale from 0 to 10.
The straightforwardness of this metric results in a single numerical value, which is very easy to manage. The use of a single variable eliminates any potential for confusion or complexity.
Employees prefer eNPS to surveys
Survey fatigue is a common experience for many of us. 😴
Fortunately, with the eNPS, employees are spared this frustration. They are tasked with answering just one straightforward question: "How likely are you to recommend us as a place to work for your family and friends?"
This streamlined approach ensures that the survey won't consume a big chunk of their time.
Furthermore, the process doesn’t require lengthy introductions. Even if some employees are unfamiliar with the concept, it's an uncomplicated idea to convey: you're simply interested in whether your team members would recommend your organisation as a workplace.
What's truly ingenious about this approach is that this straightforward response conveys a wealth of information about employee engagement, all while demanding very little from those providing the feedback. 👍
eNPS are cost-effective
Due to the eNPS being a single-question survey, you can efficiently implement it through your organisation's existing communication channels, incurring no extra costs. 💵
Requiring just a single email to initiate, measuring the eNPS entails minimal time and budgetary commitments. Collectively, these benefits afford you the flexibility to conduct more frequent check-ins with your employees – they provide you with a consistent stream of data to ascertain whether your organisation is making progress in terms of improvement.
Employee engagement
The eNPS serves as a precise reflection of employees' willingness to recommend the company.
When employees respond to this question anonymously, they are more likely to provide candid feedback, facilitating the identification of factors contributing to low productivity and engagement. 🔍
Satisfied employees lead to satisfied customers
Satisfied employees are the linchpin of any successful business, as they directly impact customer satisfaction.
Employees who are content, engaged, and motivated in their roles are more likely to deliver exceptional customer service. Their positive attitude and commitment to their work shines through in their interactions with customers, resulting in a more pleasant and efficient customer experience. 😁
eNPS Best Practices to Follow: Our Winning Strategies and Examples
Although eNPS surveys are a powerful tool all organisations can leverage for better employee satisfaction, there are still a few best practices and strategies to follow ⬇️
Use engagement surveys after eNPS
We've previously emphasised the effectiveness of eNPS due to its brevity and simplicity, setting it apart from more extensive engagement surveys.
However, it's essential not to overlook the valuable insights that longer employee engagement surveys can provide. Think of eNPS as a valuable starting point – comprehensive surveys in your company are necessary too.
Therefore, consider complementing your Employee Net Promoter Score surveys with periodic engagement surveys to gain a comprehensive understanding of your company's culture and the necessary steps for its cultivation.
Examples of employee Net Promoter Score questions
- On a scale of 0 to 10, how likely are you to recommend our organisation as a place to work to others?
- How likely is it that you would encourage a friend or family member to join our company as an employee?
- Would you speak positively about our workplace culture and environment to your peers?
- Considering your experience working here, how probable is it that you would endorse our organisation to potential job seekers?
- On a scale from 0 to 10, how inclined are you to suggest our company to others as an employer?
- How probable is it that you would refer someone you know to apply for a job at our organisation?
- Would you actively promote our company as a great place to work to others in your professional network?
- On a scale of 0 to 10, how likely are you to recommend our company as an employer to your acquaintances?
- How comfortable would you feel advocating for our organisation as a workplace to your friends and family?
- Would you consider endorsing our company as an employer to your professional connections and acquaintances?
Employee Net Promoter Score survey structure
Structuring your eNPS cycles effectively involves several key considerations 👇
Get the timing right
Send out an Employee Net Promoter Score (eNPS) survey approximately once every quarter. This frequency helps maintain consistency in your results and encourages employees to become accustomed to responding to the questions within the context of regular business cycles. 👍
Anonymity is key
Ensuring an unbiased eNPS requires providing employees with the freedom to offer entirely truthful answers. This involves not only making the survey anonymous but actively reassuring participants that their identities will remain confidential even if they provide a lower rating.
It's essential to eliminate any concerns about potential backlash if employees are candid in their feedback. Imagine a scenario where employees fear repercussions for providing truthful, low ratings because anonymity hasn't been guaranteed. In such cases, you may inadvertently classify these detractors as passives, distorting the true level of satisfaction they hold.
Keeping things honest
Emphasise to your employees that they should not feel obligated to provide overly positive scores if their true sentiments do not align.
Some individuals might be tempted to offer "kind" ratings to please their employers rather than expressing any dissatisfaction. It's crucial to convey to your workforce that you genuinely value their honest opinions, irrespective of whether they are positive or negative.
Don’t forget the reminders
Given the simplicity of responding to an eNPS question, participation rates should generally be reasonably high, reducing the need for excessive follow-up efforts compared to longer surveys.
However, it's still advisable to send out a couple of gentle reminders, just in case the initial email coincided with an inconvenient time for some employees. Short email reminders or Slack messages can suffice for this purpose.
How to improve your employee net promoter scores
If your eNPS scores are low, consider the following strategies ⬇️
- Find the Reasons: Start by figuring out why scores are low. Talk to employees through meetings or follow-up emails to understand how management can make the company a better workplace. Use follow-up questions to dig into specific issues causing dissatisfaction and make employees feel heard and valued.
- Regular Surveys: Regular employee feedback surveys are crucial. They help HR teams identify areas that need improvement, like training, communication, leadership, and company culture. Share survey results and action plans with the organisation.
- Take Action: Act on survey feedback. For example, if employees want career advancement, enhance learning and development initiatives, including mentorship and job rotation.
- Positive Culture: A positive workplace culture is vital. Promote it by recognising achievements, celebrating milestones, advocating for work-life balance, and offering wellness programs.
- Competitive Compensation: Offer competitive salaries and benefits like health care and retirement plans. Show you care about employee well-being.
- Training and Growth: Invest in employees' growth with online courses, mentorship, and job shadowing. This boosts engagement and job satisfaction.
- Effective Communication: Communicate openly and transparently about company updates and policies. Keep employees engaged and informed.
Final Thoughts
The Employee Net Promoter Score (eNPS), adapted from the NPS, offers a powerful tool to gauge and enhance engagement within your organisation.
Employee engagement is more than just a buzzword; it significantly impacts a company's profitability and productivity. eNPS provides valuable insights into your workforce's happiness and willingness to recommend your organisation as a great place to work.
So what are the key takeaways?
- The eNPS calculation involves categorising employees' responses into Promoters, Passive or Neutral, and Detractors and using the formula: eNPS = % Promoters - % Detractors.
- eNPS is a quick, high-level assessment, while pulse surveys provide a more detailed understanding of employee experiences.
- Benefits of eNPS include simplicity, cost-effectiveness, and its ability to reflect employees' willingness to recommend the company.
- Satisfied employees lead to satisfied customers, as they impact customer satisfaction directly.
- eNPS best practices include using engagement surveys after eNPS, maintaining anonymity, encouraging honest feedback, and sending reminders.
- To improve eNPS scores, organisations should find the reasons for low scores, conduct regular surveys, take action on feedback, promote a positive culture, offer competitive compensation, invest in training and growth, and ensure effective communication.
Need more eNPS help? Contact us via the form below! We’re HR experts and we’d be happy to help 🤝
FAQ: Frequently Asked Questions
What is the main difference between traditional customer satisfaction measurement and the Employee Net Promoter Score (eNPS)?
While traditional measurements focus on customer satisfaction, eNPS is designed to gauge employee sentiment and engagement within an organisation.
How does eNPS work, and why is it important for organisations?
eNPS works by asking employees a single question about their likelihood to recommend the company as a place to work. It's important because engaged employees are linked to higher profitability and productivity.
What are the key categories used in calculating eNPS?
eNPS categorises employees into Promoters (happy and satisfied), Passive or Neutral (somewhat satisfied), and Detractors (dissatisfied). The score is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
How does eNPS differ from pulse surveys?
eNPS focuses on one simple question to provide a quick overview of employee sentiment, while pulse surveys are more comprehensive, covering various aspects of the workplace in greater detail.
Why is eNPS considered cost-effective?
eNPS is cost-effective because it involves a single-question survey that can be easily implemented through existing communication channels without extra costs.
What are the potential benefits of implementing eNPS for employee engagement?
eNPS offers benefits such as simplicity, higher response rates due to a single question, and the ability to gather candid feedback.
How can organisations ensure anonymity in eNPS surveys?
Anonymity is crucial in eNPS surveys. Employees should be assured that their identities will remain confidential even if they provide lower ratings.
What can organisations do to improve their eNPS scores?
To improve eNPS scores, organisations can start by understanding the reasons behind low scores, conducting regular surveys, taking action on feedback, promoting a positive culture, and investing in employee growth and compensation.
How often should organisations conduct eNPS surveys?
It's recommended to send out eNPS surveys approximately once every quarter to maintain consistency in results and allow employees to get used to responding to the questions regularly.
Why are satisfied employees crucial for overall business success?
Satisfied employees directly impact customer satisfaction and can lead to a more positive and efficient customer experience.
What are some effective employee NPS survey questions to measure engagement?
Effective employee NPS survey questions aim to gauge employee engagement comprehensively. Some examples include:
- "On a scale of 0 to 10, how likely are you to recommend our organisation as a place to work to others?"
- "What factors contribute most to your job satisfaction?"
- "How satisfied are you with the support and resources provided for your professional development?"
How is the Employee Net Promoter Score (eNPS) calculated?
Calculating eNPS involves categorising employee responses into three groups:
- Promoters (scores 9-10) who are highly satisfied and likely to recommend.
- Passives (scores 7-8) who are somewhat satisfied but not enthusiastic.
- Detractors (scores 0-6) who are dissatisfied.
To calculate eNPS, subtract the percentage of detractors from the percentage of promoters (eNPS = % Promoters - % Detractors). The result is your eNPS score, which helps measure employee sentiment.
Can you share a sample eNPS survey template for us to use?
Certainly! Here's a sample eNPS survey template:
- "On a scale of 0 to 10, how likely are you to recommend our organisation as a place to work to others?"
- "What aspects of our workplace do you find most satisfying, and why?"
- "Are there specific areas where you believe we could improve to enhance your overall work experience?"
What is considered a good Employee Net Promoter Score (eNPS)?
A good eNPS score typically falls in the range of +10 to +30. However, ideal scores can vary by industry and region. To determine what's "good" for your organisation, compare your eNPS to industry benchmarks and set targets for improvement based on your unique context.
What are the benefits of using the Net Promoter Score (NPS) for employee feedback?
Using NPS for employee feedback offers benefits such as simplicity, a quick assessment of engagement, and the ability to gauge employees' willingness to recommend your organisation. It can also highlight areas that need improvement, enhancing your HR strategies.
Can you provide some example Net Promoter Score questions for employee surveys?
Certainly! Here are some example NPS questions for employee surveys:
- "How likely are you to recommend our organisation as a place to work to others?"
- "What improvements do you think could make our workplace more appealing?"
- "What aspects of our company culture contribute most to your job satisfaction?"
What are the key Net Promoter Score questions to ask during customer feedback collection?
Key NPS questions for customer feedback include:
- "On a scale of 0 to 10, how likely are you to recommend our products/services to others?"
- "What specific aspects of our products/services do you appreciate the most?"
- "Is there anything we could improve to better meet your needs?"
How can NPS benefit my organisation's growth and customer relations?
NPS benefits your organisation by providing actionable feedback to improve products/services and enhance customer relations. It helps identify promoters who can advocate for your brand and detractors whose concerns can be addressed proactively.
What are some typical NPS survey questions used to assess employee attrition factors within my organisation?
To assess employee attrition factors, consider NPS questions like:
- "How likely are you to recommend our organisation as a place to work to others?"
- "What factors, if any, would influence your decision to leave our company?"
- "Is there anything we can do to retain you as an employee?"
