Employee Net Promoter Score (eNPS)
eNPS stands for Employee Net Promoter Score. It's a measure used by businesses to gauge employee loyalty and the likelihood that they would recommend the company as a place to work to others. It's based on the Net Promoter Score (NPS) system which was originally designed to measure customer loyalty.
eNPS is calculated by asking employees one simple question: "On a scale of 0 to 10, how likely are you to recommend this company as a place to work?" Employees who respond with a score of 9-10 are considered 'Promoters', those who score 7-8 are 'Passives' and those who score 0-6 are 'Detractors'. The eNPS is then calculated as follows:
eNPS = % of Promoters - % of Detractors
The score ranges from -100 to +100.
Defining what constitutes a 'good' eNPS score can be somewhat complex, as it varies by industry, region, and the size of your company. Generally, any positive eNPS score is seen as good because it indicates that your organization has more promoters (employees likely to recommend your company) than detractors (those unlikely to recommend your company).
To delve deeper into the scoring, employees who respond to the eNPS question with a score of 9-10 are labeled as 'Promoters'. These individuals are loyal and enthusiastic employees. They're likely to stay with the company for a long time and say positive things about their workplace, driving recruitment.
Employees who score 7-8 are 'Passives'. They're generally satisfied but not overly enthusiastic. These employees could easily be swayed by a better job offer and are less likely to actively promote your organization.
Finally, those who score from 0-6 are 'Detractors'. They are unhappy with their workplace and may share their negative perceptions, thus potentially damaging the company's employer brand. High levels of detractors could indicate deep-rooted problems within your organization that need to be addressed.
Improving your eNPS score isn't just about raising numbers on a scale—it's about creating a better work environment that fosters employee satisfaction and loyalty. Here are some strategies you can use to achieve this:
Make it a habit to conduct eNPS surveys on a regular basis. This will give you timely insights into your employees' experiences and help you identify areas where improvement is needed. Regular surveys also show your employees that you value their feedback and are committed to improving their work experience.
Simply gathering scores isn't enough—you need to understand the reasons behind them. For instance, why are your promoters enthusiastic about your company? What makes your detractors unhappy? Analyzing open-ended responses and having follow-up conversations can provide crucial insights here.
Once you understand the issues affecting your eNPS, develop a strategic action plan to address them. Whether it's improving communication, offering better training programs, or reviewing compensation, your actions should directly address your employees' feedback.
After implementing changes, communicate them to your employees. This step is crucial as it demonstrates your responsiveness to their feedback and your commitment to improving their work experience.
Finally, track the effectiveness of the changes you've implemented by conducting follow-up surveys. This will not only show you how your eNPS has improved but also indicate whether the changes are having the desired effect. If they aren't, adjust your strategy accordingly.
Net Promoter Score (NPS) is a measure used to understand customer loyalty and satisfaction. It's calculated by asking customers a single question: "On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?" The calculation method is the same as eNPS, but applied to customers.
While both NPS and eNPS use the same calculation method, the key difference lies in their target audience. NPS measures the loyalty of customers to a company, while eNPS measures the loyalty of employees to their employer.
Both are valuable in providing insights into different aspects of a company's operations: NPS provides insights into customer satisfaction and loyalty, while eNPS gives a sense of employee satisfaction, engagement, and loyalty.