What Is Employee Net Promoter Score (eNPS)?
Employee net promoter score (eNPS) is defined as a number between 100 and −100 that indicates how likely it is for an employee to promote their organization to other job seekers. It is a version of the customer net promoter score applied to your workforce.
The NPS is a trademarked concept developed by Fred Reichheld, Bain and Co., and Satmetrix in the 90s. NPS is a quantifiable measure of how likely customers are to recommend a product, a brand, or a marketplace to their immediate sphere of influence. The question is precise:
On a scale of 0 to 10 [0 being “not at all” and 10 being “I would love to”], how likely are you to recommend us to others?
eNPS translates the same question into a framework relevant to the workplace. It asks how likely your employees are to refer the company to others as a place to work. The answer employees provide is a direct indicator of employee loyalty, satisfaction, and engagement. For instance, an employee unhappy with their pay scale or one feeling a sense of alienation/isolation in the workplace may rate the question between 1 and 5.
It is no secret that engaged employees are an essential ingredient for your company’s success. A case study found that engagement had a direct impact on how likely customers are to recommend the company and describe its services positively to friends and family. For employees with a 65% engagement rating and above, customers gave the company an NPS of 33, the case study suggested. For employees with 30% or less engagement, customer NPS dropped to −21.
Respondents of an eNPS survey are classified into three types:
Detractors wouldn’t recommend your company as an excellent place to work. The chances are that you won’t receive a lot of referrals from this segment. If any interested candidate asks them for an opinion on the company, they might even depict a negative picture. Detractors will rate your company between 0 and 6.
Passive employees wouldn’t say anything wrong about your company, but they also are unlikely to go out of their way to recommend the company to others. This segment is typically satisfied with their job and its primary advantages, such as the pay, benefits, commute, and work-life balance. However, they aren’t very engaged in the workplace and are probably not invested in your company’s growth. Passives will rate your company between 7 and 8.
Promoters are vocal advocates of your employer brand, actively spreading the word about the value of your workplace. They are the most engaged and motivated of all and may be responsible for a large share of the company’s productivity. Promoters will rate your company between 9 and 10.
Learn More: Employee Net Promoter Score – A Good Measure of Engagement?
A Simple Formula to Calculate eNPS
Interestingly, the passive segment doesn’t influence your net promoter score. Instead, you consider the number of detractors and promoters to arrive at an accurate figure on engagement at the workplace.
Remember, because the detractors’ range is far higher (there are seven options for employees to choose from), a large portion of your workforce may answer on these lines. In contrast, promoters can rate your company either a 9 or a 10. If, despite this imbalance, you end up with a positive eNPS, it means that your workplace is high on engagement. Here are the steps to calculate eNPS:
1. Deploy an eNPS survey carrying the question mentioned above. Keep the exact number of employees you have sent this question to in mind – for example, 1,000.
2. Count the number of employees whose responses were between 0 and 6. Then, turn this into a percentage of the total workforce. For example, if 300 employees rate your company between 0 and 6, that implies that 30% of your workforce comprises detractors.
3. Count the number of employees who responded with a 9 or 10. Once again, turn this into a percentage of the total workforce. If 600 employees rate your company in this range, it implies that 60% of your workforce are promoters.
4. Now, subtract the percentage of detractors from the percentage of promoters.
60% – 30% x 100 = 30 [eNPS]
To sum up, the formula is as follows:
% promoters − % detractors x 100 = Employee Net Promoter Score
eNPS is never calculated as a percentage. It is always a whole number that reflects how many more promoters than detractors you have at your company.
eNPS results can range anywhere from −100 to 100. −100 means that every employee is a detractor, while 100 means that every employee is a promoter. A score of 30 and above indicates a moderate level of engagement, while 50 and above is an excellent score to obtain.
Learn More: How to Measure Workplace Productivity
So, how often should you measure eNPS? It’s advisable to conduct one eNPS survey every year. This will ensure that employees take this score seriously and aren’t influenced by immediate workplace events. Also, a yearly model will help you spot more concrete patterns in employee engagement.
If you are going through a period of dynamic growth, you could also choose quarterly or biannual eNPS surveys. But it’s best to avoid frequent surveys, as the data is likely to be skewed by recent events. For instance, an employee who just won a new project or who was recently reprimanded by their manager is likely to bring a certain amount of bias to their responses.
“Employee Net Promoter Score can prove to be a highly effective tool to measure employee engagement if improved continuously over time,” says Sophia Madhavan, senior director at SurveySparrow. She also adds that “you should benchmark your results against yourself only and not against competitors.”
This is important because the drivers of engagement for your employees may be different from those offered by other organizations. It is best to first identify these drivers and then measure what you can change or modify to improve eNPS.
Learn More: Do Employee Engagement Surveys Truly Work?
3 Platforms to Help Measure and Improve eNPS
There are three things to remember when initiating an eNPS measurement drive.
All your data must be anonymized so that employees are confident about being honest and candid.
You might want to deploy team/region/office-specific surveys to detect the exact source of disengagement.
Those rating the company at a 6 or less should be given follow-up questions to explore the reason for their dissatisfaction.
To help you navigate these nuances and turn eNPS data into actionable insights, you can leverage the following platforms:
1. BambooHR Employee Satisfaction
BambooHR’s employee satisfaction survey platform has a useful eNPS module. Beyond a single “likelihood to recommend question,” it also delves into the myriad factors that make up employee engagement in the workplace. This includes elements such as leadership/management, culture, and people at work.
The data is depicted in an easy-to-read visual format so that you can act on it immediately.
ENPS.co allows you to send surveys via text, email, or even Slack, making them accessible on any device. You can also incentivize the survey using gift cards, increasing the participation rate. Unlike BambooHR, ENPS.co keeps it simple with one easy-to-answer question.
Finally, you can ask employees about their likelihood to recommend a specific location, department, or manager. Doing this offers more targeted results and allows you to define your employee engagement strategy accordingly.
3. People Pulse
People Pulse is a feedback solutions provider catering to a large number of use cases across customer, employee, and leadership scenarios. It has a dedicated, customizable eNPS solution offering mobile-optimized surveys for any time, anywhere access. You can also invite employees via QR codes apart from the standard options.
Learn More: 5 Exciting CultureTech Platforms to Help You Establish Company Culture
5 Follow-up Questions You Need on Your eNPS Survey
Following the primary question that asks how likely an employee is to refer the company as a workplace of choice, you can set up an automated workflow that asks additional questions based on their response within a specific range. These questions include:
1. “We are sorry you feel this way. Could you tell us the No. 1 challenge you face in the workplace?”
Ask this to anyone answering between 0 and 2. These are the most dissatisfied employees and are at a high risk of attrition.
2. “Thank you for your rating. What would you change about the workplace in the next year?”
Ask this to employees who give you a 3 or 4 rating. This is a low-satisfaction segment, but they may see room for improvement.
3. “Thank you. Which is the one element that, if added to the workplace, would improve your experience?”
Ask this to employees with a rating of 5 or 6. Although they are detractors, they are somewhat satisfied, and a strategic change might help to improve their experiences.
4. “Glad to see your rating! Which is the one thing that you love most about the company? And, which is the one thing that irks you?”
Ask this to passives – that is, those who respond with a 7 or an 8. Although this group won’t be factored into the eNPS calculation, you can learn a lot from their responses. This group represents a set of objective employees who are neither biased for or against your company. Validate the reasons mentioned by other employees using the answers to these two questions.
5. “Thanks, we love you too! Which is the one factor that determined your answer?”
Ask this to employees who gave you either a 9 or a 10. They are engaged in their work and are eager to become ambassadors of your employer brand – their answers will tell you what you are doing right.
Learn More: 15 Essential Employee Satisfaction Survey Questions for Your 2020 Questionnaire
eNPS at SendGrid, Costco, and Zillow: Examples and Ideas
Leading companies across the world have adopted eNPS as a standard measure of employee engagement and loyalty. Remember, it is vital to act on the results of your survey if you’re going to increase workforce satisfaction at your organization.
Take inspiration from these three companies with an impressive employee net promoter score, (as per the Relationwise Global NPS and ENPS Benchmark Report 2018) for ideas on how to improve this metric in 2020.
1. Figure out a clear definition of your company culture like values like SendGrid (latest eNPS: 83)
Email automation company SendGrid has a stellar eNPS of 83. This means that the number of promoters is 83 percentage points ahead of the number of detractors at the company.
SendGrid boasts of a corporate culture that’s defined by 4Hs – Happy, Hungry, Humble, and Honest. Encapsulating your company’s culture in such clear terms makes sure that employees are on the same page as senior leadership while you pursue growth. This makes it easy to detect behavior that’s out of sync with company values.
It also helps that SendGrid affectionately calls every employee a “Gridder,” fostering a sense of pride.
2. Keep the pay scale well above the industry average like Costco (latest eNPS: 76)
The U.S.-based retailer Costco offers its employees an average salary of $21 per hour as well as health benefits and vacation time. This is in stark contrast to the broader retail industry, which continues to pay employees a minimum wage of $7.25–15 per hour. This has resulted in an exceptional eNPS of 76.
By giving employees high wages, Costco saves on turnover expenses. The engagement, loyalty, and satisfaction at the company mean that the workforce has a 7% turnover rate, compared to 60%–70% at other retailers.
If you’re a process-based company or require a large amount of manual effort, increasing wages can be a great way to maintain engagement and retain employees.
3. Adopt an employee-centric HR strategy like Zillow (latest eNPS: 65)
The online real-estate platform, Zillow, employs over 3,000 workers and has a powerful employee-centric focus. In fact, Zillow’s CEO considers HR to be “the most important function of the company,” and has a dedicated Group VP of People position.
By prioritizing HR and making employee-centricity a business priority, you can ensure that your employee net promoter scores never slack. For example, Zillow invests heavily in educating its employees, purports a culture of innovation (not success), and stays away from the always-on work ethic.
It is essential to define your vision for HR and integrate it with the business roadmap for a high NPS.
Learn More: How Talent Leaders Are Shaping the World’s Best Workplaces – Insights for Future HR Leaders
Wrapping Up: Hacks to Help You Maximize the eNPS Model
eNPS can be a handy tool to put a number on employee engagement. It reveals key data and insights into employee sentiment, guiding HR on the way forward. Follow these tips to maximize your eNPS survey in 2020:
Ask for employee feedback before you launch the eNPS survey. This will help formulate the questions more accurately.
Benchmark your employer brand with data from websites such as Indeed and Glassdoor. This will help determine if your employee net promoter score is good or bad.
Distribute thank you notes – either digital or physical – to employees who participated in the survey. This can help increase participation rates over time.
Mention clearly that the survey is anonymized and will not positively/negatively impact employees’ growth in the company.
With these tips, you will find yourself ready to launch a comprehensive and effective eNPS initiative geared to gather holistic data. By acting on the survey insights and aligning the company culture to employee feedback, you can create a workplace that is engaging, productive, and future-ready.
Source : https://www.hrtechnologist.com/articles/employee-engagement/employee-net-promoter-score-enps-definition-measurement-examples-ideas/