In today’s business environment, the Employee Net Promoter Score (eNPS) has established itself as an essential tool for measuring employee satisfaction and engagement. This indicator not only provides a clear picture of the level of employee loyalty within the organisation, but is also a direct reflection of the company culture.
A high eNPS not only means high staff motivation and satisfaction, but is also directly linked to increased productivity, which in turn contributes to a company’s long-term success. In this comprehensive eNPS guide, we will explore what eNPS is, how to calculate it effectively and how to improve this valuable index to foster a positive and highly effective work environment.
What is the Employee Net Promoter Score (eNPS)?
The eNPS, or Employee Net Promoter Score, is a metric used to measure the level of employee satisfaction within a company. It is a variant or adaptation of the Net Promoter Score (NPS) or “net promoter score”, which is commonly used to assess customer loyalty.
It works in the following way: in order to determine the degree of employee satisfaction within a company, its HR department conducts a simple survey consisting of one single, concise question. Participants must answer this question by providing a score, a number between 0 and 10.
Let’s use the following well-known question as an example: “On a scale of 0 to 10, how likely are you to recommend our company as a place to work?“. On the 11-point scale, respondents should answer, indicating from not at all likely (0) to extremely likely (10).
Participants are then categorised into three groups based on the scores they have given:
- Scores between 0 and 6: Detractors.
- Scores between 7 and 8: Passives
- Scores between 9 and 10: Promoters
Each of these categories implies different roles, risks and benefits. Read on to find out more about these three types of employees:
- Promoters: Extremely loyal employees who are most likely to spread a positive opinion about your organisation.
- Passives: Neutral workers who are neither emotionally engaged nor disengaged.
- Detractors: Most likely to spread a negative opinion about your organisation. Tend to be disengaged and disgruntled employees.
How to calculate a company’s eNPS
To calculate the Employee Net Promoter Score, the percentage of Detractors is subtracted from the percentage of Promoters. Passives are not included in this calculation, as they do not directly affect the score. For example, if 60% of respondents are Promoters and 20% are Detractors, the eNPS would be +40 (60% – 20%).
A positive eNPS indicates that a majority of employees would recommend the company, while a negative eNPS suggests that the majority of employees would discourage others from working there.
Conducting regular surveys is essential for keeping this metric up to date and detecting trends over time. Furthermore, supplementing the eNPS result with qualitative analysis is crucial in order to understand the reasons behind the scores obtained.Targeted improvements in the employee experience can then be implemented, which can, in turn, contribute significantly to talent retention and the overall success of the organisation.
Formula for determining the Employee Net Promoter Score (eNPS)
Based on the groups of promoters, neutrals and detractors, the eNPS is calculated with the following formula:
eNPS = % promoters – % detractors
If out of 100 employees surveyed, 50 give scores of 9 or 10 (Promoters) and 20 give scores of 0 to 6 (Detractors), the calculation would be as follows:
- Percentage of Promoters (P) = (50 / 100) * 100 = 50%
- Percentage of Detractors (D) = (20 / 100) * 100 = 20%
- eNPS = P – D = 50% – 20% = 30
An eNPS of 30 indicates that there are more employees who are willing to recommend the company than employees who are not. This result provides a clear picture of employee satisfaction and loyalty, helping companies to identify areas for improvement and to assess their attractiveness as an employer.
Benefits of measuring the Employee Net Promoter Score
The eNPS is not just an isolated number in an Excel spreadsheet shown to company executives at quarterly meetings. Beyond the value of the objective data it provides, this tool is also essential for detecting the strengths of a company’s organisational culture, as well as those areas needing improvement.
- Satisfaction and loyalty measurement.
The eNPS provides a clear metric of employee satisfaction and loyalty reflecting the emotional engagement of employees and how connected they feel to the organisation. - Identifying areas for improvement.
Captures direct feedback on organisational culture. This is crucial for implementing changes that improve employee well-being and satisfaction, boosting productivity and retention. - Results prediction.
Organisations with highly engaged employees tend to outperform their competitors in profitability and growth.
What is deemed to be a good eNPS?
Employee Net Promoter Scores can range from -100 to 100, with any score above 0 being acceptable. Scores between 10 and 30 are considered good, while those between 50 and 70 are considered excellent. An eNPS score above 80 is likely to place the organisation in the top percentile in almost any industry.
However, even more important than obtaining a good score or avoiding a negative one, is maintaining or improving the current eNPS, as recorded in the last performance results. Consistently maintaining an acceptable or favourable score signals ongoing employee satisfaction and loyalty.
Improving an eNPS
Strategies exist to help improve a low eNPS. Here are some examples:
- Attractive benefits: Providing competitive benefits such as health insurance, discount programmes and generous time-off policies increase job satisfaction.
- Improved internal communication: Encouraging open and transparent communication may increase employee trust and engagement.
- Training and ongoing learning: Providing opportunities for professional development and growth can increase employee satisfaction and loyalty.
- Encouraging a good work-life balance: Introducing policies that promote health and flexibility can improve employees’ overall well-being and their perception of the company.
Measuring and improving Employee Net Promoter Score is not only crucial for determining employee satisfaction, but also provides valuable insights into organisational culture and areas for potential improvement. By implementing strategies that foster a positive work environment and professional development, companies can strengthen employee engagement and optimise their long-term performance.
