What is an employee net promoter score (eNPS)? How does it work? And how can you use it to measure and improve employee satisfaction in your company?
In this complete guide, we’ll answer all of those questions and more. Keep reading to learn everything you need to know about eNPS!
|Table of contents|
|What is Employee Net Promoter score?|
|How is eNPS calculated?|
|What is a good eNPS Score?|
|What is a bad eNPS Score?|
|How to improve your eNPS score?|
|What’s the difference between NPS and eNPS?|
What is Employee Net Promoter Score?
An employee net promoter score (eNPS) is a metric used to measure employee satisfaction and loyalty. Essentially it involved categorizing employees into three groups: promoters, passives, and detractors.
- Promoters are happy with a company and would recommend it to others.
- Passives are satisfied but not enthusiastic, and may be open to switching to another company.
- Detractors are unhappy and will likely leave negative reviews about a company.
The eNPS metric is calculated by taking the percentage of employees who are promoters and subtracting the percentage who are detractors. This gives you a score that can range from -100 to 100.
How is eNPS Calculated?
To calculate your company’s eNPS, you first need to survey your employees and ask them how likely they are to recommend your company to a friend or family member. You can use a scale of 0-10, where 0 is not at all likely and 10 is extremely likely.
Once you have the results of the survey, you need to group the responses into three categories:
- Promoters (9-10)
- Passives (7-8)
- Detractors (0-6)
Then, you calculate the percentage of employees in each category and plug those numbers into the employee net promoter score formula:
- eNPS = % Promoters – % Detractors
For example, let’s say you surveyed 100 employees and you got the following results:
- Promoters: 40
- Passives: 30
- Detractors: 30
This would give you an eNPS of 40-30, or 10.
Remember that you don’t need to calculate your employee net promoter score manually, there are many platforms out there that you can use to collect and analyze eNPS data on auto-pilot. Create a free eNPS survey with JustFeedback.
What is a Good eNPS Score?
A good eNPS score depends on your industry and what you consider to be a “good” score for your company. Generally speaking, a score of 0-30 is considered average, 30-60 is considered good, and 60-100 is considered excellent.
Of course, there’s no magic number that guarantees success. However, the important factor, is to track your eNPS over time so you can identify trends. If you see your score improving, that’s a good sign that you’re on the right track.
It’s also important to compare your eNPS score relative to other companies in your industry. This will give you a better idea of where you stand in terms of employee satisfaction among your peers.
What is a Bad eNPS Score?
A bad eNPS score is anything that’s below average for your industry. If you’re scores are consistently low, that’s a sign that you need to make some changes in your company.
Low employee satisfaction can lead to high turnover rates, which can be costly for your business. It can also damage your company’s reputation and make it difficult to attract new talent.
If your eNPS score is low, don’t panic. There are lots of things you can do to improve employee engagement in your company. We’ll talk more about that later in this guide.
How to Improve Your eNPS Score?
There are a number of ways you can go about improving your eNPS score, but to keep things brief we’ll focus on just a few ideas for now:
- Communicate with your employees regularly: Let them know what’s going on in the company and get their feedback.
- Make sure your employees feel like they’re part of the team: Encourage collaboration and give employees opportunities to participate in decision-making.
- Offer competitive wages and benefits: Employees are more likely to be satisfied if they feel like they’re being compensated fairly.
- Invest in employee development: Provide training and development opportunities so employees can improve their skills and advance their careers.
- Recognize and reward employees for a job well done: A little appreciation can go a long way.
- Show your employees that you care about their well-being: Offer perks like flexible work hours, wellness programs, and employee assistance programs.
By taking these steps, you can improve your employee net promoter score score and create a more satisfied and loyal workforce.
What’s the difference between NPS and eNPS?
Although the names might sound similar, they do however gives insights into two completely different groups. Let’s look at this in more detail.
- NPS (Net Promoter Score) is a survey for customers that’s designed to measure customer satisfaction by asking how likely your customers are to recommend your company to others.
- eNPS (Employee Net Promoter Score) is a survey for employees and is designed to measure employee satisfaction by asking how likely your employees are to recommend your company to others.
Both surveys infact operate in the same way, in that respondents are asked to provide a rating between 0-10. But the key difference is who the target audience is. NPS is focused on customers, while eNPS is focused on employees.
Also, both are useful for measuring customer satisfaction and employee satisfaction. However, eNPS is a more accurate measure of employee engagement because it takes into account the unique relationship between an employer and an employee.
If you’re interested in measuring customer satisfaction, you can learn more about NPS here.
Why are eNPS surveys important?
Employee net promoter score surveys are important because they give you a snapshot of employee satisfaction in your company. By tracking eNPS over time, you can identify trends and spot problems early on.
Regular eNPS surveys can help you to:
- Prevent high turnover rates by identifying employee dissatisfaction early on
- Improve employee loyalty by implementing changes based on feedback
- Boost your company’s reputation by demonstrating that you care about your employees’ opinions
- Make it easier to attract top talent by showing that you’re an employer of choice
If you’re not already surveying your employees, we recommend starting as soon as possible. An eNPS survey is a quick and easy way to get valuable insights into your employees’ satisfaction levels.
Types of questions to incorporate in an eNPS survey
Short questions are a great way to measure employee loyalty. It also provides us with a clear picture of employee dissatisfaction or satisfaction. Here are some questions that help measure employee engagement.
- Would you recommend our company to your friends?
- Are you comfortable with the company’s culture?
- Do you feel there is mutual respect between you and all the employees in the entire organization?
- Is there room for constructive criticism and to talk negatively about the management?
- Do the managers give honest feedback and get back with follow-up questions?
- Do you think that work is distributed evenly between all employees?
- Do you look forward to coming to work every day?
- Is there enough room for advancement and professional growth at our company?
- Is the organization providing you with the tools and technology you require to execute your work effectively?
- Do you have a positive attitude and are you motivated at work?
- Do you think that the company management cares about your physical and mental wellbeing?
- Do you get significant benefits on key occasions, such as holidays and other festivities?
These are a few question suggestions that you can work with if you are confused about making an eNPS question material. You can always add follow-up questions along with it. Going through more articles and questions will give you enough data to consistently work with.
Keep in mind that too many questions might cause survey fatigue and indicate you do not genuinely care about your employees time.
Should an eNPS survey be anonymous?
Absolutely! Employee net promoter score surveys should be anonymous. This is essential if you want to collect honest, genuine feedback from your emplorees.
Ultimately, if employees don’t feel like their responses will be confidential, they may hold back from giving honest feedback. This could lead to inaccurate results and make it difficult to identify problems in your company.
When designing your eNPS survey, be sure to use a tool that will keep responses confidential. This can be done by using an online survey tool or sending out paper surveys that are collected in a sealed envelope.
The benefits of eNPS
There are many benefits to implementing an eNPS survey in your business, including:
1. Improved employee engagement
By tracking employee engagement levels over time, you can identify trends and spot problems early on. This allows you to make changes before dissatisfaction leads to high turnover rates.
2. Increased productivity
Studies have shown that happy employees are more productive employees. By tracking eNPS scores, you can ensure that your employees are happy and engaged in their work.
3. Boosted company reputation
Showing that you care about your employees’ opinions demonstrates that you’re a responsible employer. This can help boost your company’s reputation, making it easier to attract top talent.
4. Improved employee experience
Happy employees lead to happy customers. By tracking eNPS scores, you can ensure that your employees are providing the best possible service to your customers.
5. Increased profitability
All of the above benefits lead to one thing – increased profitability. By improving employee engagement, productivity, and customer service, you can boost your bottom line.
When should you send an eNPS survey?
The success rate of the employee net promoter scores will depend on how you organize your eNPS cycle. Let’s dive into it.
1. The correct timing
The right timing of the survey is crucial. It is suggested you send out the survey once every year to ensure the best results.
2. The freedom to answer
To get unbiased answers, employees must be ensured that their answers will be kept anonymous. Only then will they be honest in their answers.
3. Giving it importance
The biggest challenge that management faces while conducting eNPS surveys is that employees do not take it seriously. This is because they believe that it won’t make a difference no matter what the results are.
Action needs to be taken accordingly to guarantee that the results from the eNPS will be taken into consideration and changes will be made accordingly.
How often should you survey your employees?
There’s no right or wrong answer to this question. It depends on your company’s needs and resources.
Some companies choose to survey their employees quarterly, while others do it annually. The important thing is to survey your employees regularly so you can identify any issues early on.
Improving employee satisfaction with eNPS
Employees are the most valuable resources for an organization. If they are not well maintained and taken care of then the goals of the business cannot be met. To achieve a high eNPS score, the following strategies can be undertaken.
1. A mix of remote and on-site work
The recent major shift towards home-working has been a blessing in disguise for businesses as they were able to cut down costs by keeping employees working from home.
Arguably, this change in working practices is something that both the management and the workers enjoy. However, it goes without saying that for certain types of work, coming to the office is still essential.
Keeping this in mind, employee satisfaction can be achieved if a mix of work from home and remote can be provided. That way employees will be able to strike a balance between both both their personal and professional life.
2. Objective-based work
These days no one is interested in working 9 to 5 on a desk job. Rather everyone wants to work as less as possible. If it is feasible for your business then it is suggested you do not keep any fixed working hours.
As long as the employees are doing their daily work deadlines on time there is no need to make them sit the extra hours at the office. In this case, employees will have more freedom and give positive feedback on the eNPS follow-up questions.
3. Pay more than their home rate
Businesses are no longer limited to the borders of one country. Now companies in the US are employing from all across the world. If your business falls into that category then high payment can be an ideal way to increase the eNPS results.
If your American-based firm is paying an Indonesian engineer more than what he is offered in Indonesia then that individual will be more willing to work for your company.
4. Creating a sense of belonging
It can get tiring to work constantly looking at computer screens. To improve employee engagement, Human Resources can undertake certain activities. These may include workplace parties, employee games, recognition programs, sports events, and team-building exercises.
Being part of these activities will make workers feel that they are part of the company name. This feeling of belonging will eventually translate to incredible service. It will assist in increasing customer nps as well.
Potential Issues Of ENPS:
Measuring employee satisfaction is a very complicated process, so a common criticism of the eNPS system is that it’s a far too simplistic to give a true reflection of employee satisfaction, as it fails to take into account other factors that could be at play.
Also, it’s rumoured that some companies have even attempted to game the system by surveying only their most engaged employees. The impact of this being, that it can skewed results making the company appear to be performing better than it really is.
Despite these criticisms, eNPS is still a very valuable tool for companies to assess employee satisfaction. Especially if it’s used correctly. In which case, it can help to identify areas where improvement is needed to boost employee satisfaction.
Ways To Make The Best Use Of Enps:
eNPS results can be a great way to increase employee engagement. It also helps in ensuring the best work environment for the employees. Here are a few ways how you can use enps effectively.
1. Filtering Out
eNPS answers and results should always be anonymous. Otherwise, employees might find it intimidating to express their opinions.
However, anonymous answers can be a problem when the surveys are being conducted through multiple departments. It is recommended that you filter the survey results and look for variances by department, geography, and demography.
This way better implementation of the results can be made.
2. Leverage Customer Loyalty
An ideal way to analyze employee net promoter score can be to conduct a customer nps survey alongside as well, so you can take account of and measure customer loyalty.
This is because if there is employee satisfaction, then it will translate to a better employee experience. As they will be serving the customers better.
3. Get Employee Engagement
eNPS scores are good or bad will not come of any help if you sit with it and do nothing. If the employee net promoter score comes as bad then discuss it with your workforce. All types of suggestions good or bad should be welcomed.
Once their suggestions and advice are taken into consideration it will ignite a sense of belonging which will enhance employee loyalty.
4. Be Proactive
Unsuccessful businesses that have high employee turnover tend to do nothing with their bad eNPS scores. If you check, they do their fair share of surveys and analysis as well. However, there is no action being taken to improve the employee experience.
To ensure less employee turnover, there needs to be action taken accordingly. After feedback on employee experience, take immediate action to solve any issues that are highlighted.
Inability to do so will send a message to the workforce that the management does not trust their opinions.
5. Keeping In Mind Of The Cross-Cultural Factors
Business culture is something that tends to vary from one culture to another. The style of management in Japan will not be the same as in the United States. The same goes for employee interaction as well.
As a result, scores may be subjected to these cultural differences. A bad eNPS score in the Sony Headquarters in Japan might be a good enough score for Sony’s office in Indonesia. Hence, scores will vary depending on cultural differences.
As a result, eNPS results don’t always provide the correct perspective relevant to the context.
The eNPS scoring system is an excellent way to gather data to ensure employee retention. Even though there are little problems with it, it is not something major. Overall, it is good for providing a general opinion evaluation.
Through the surveys, the manager can identify whether an employee is happy working or not. And then the decision regarding them can be taken accordingly.
A major upside of using eNPS is it is very easy and does not require any special instructions or answers from the respondents. All they have to do is put their answers on a scale of 0 to 10. And that is all!
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What are Promoters?
Starting with promoters, these are the employees that act as brand ambassadors to the organization. They are more than satisfied with working in the organization and recommend their known people to join as well. In terms of testing, a promoter is considered when the respondent gives a score of 9-10 on their survey questions.
Promoters will be key in increasing your employee net promoter score score. The more promoters you have in your organization, the better the eNPS scores are going to be. Having a higher ratio of promoters in the workplace means a more productive and efficient workplace.
Promoters also stay stress-free and relaxed. All in all, promoters are also less likely to leave their workplace due to loyalty. This eventually helps lower employee turnover as well.
What are Passives?
Another type of category is the passives or neutrals. These types of individuals are labeled as neutrals because they will neither promote the organization nor will they say anything negative about it. They are considered borderline satisfied. Passives are often overlooked and not given much attention.
However, that shouldn’t be the case. Just because they cause no harm doesn’t mean that the management shouldn’t hear them out. Even though their contribution to the eNPS is relevant or not. The management should be in constant effort to turn the passive/neutral population into promoters.
A major reason why passives are not inclined to become promoters is that the management usually doesn’t listen to what they have to say. Little consideration is given to their comfortability in the workplace as well.
If this is the case in your organization then it needs to be changed. Simple interactions like asking them about their family and health are a good start. As a manager, you will need to create a feedback culture in your business where everyone may openly discuss and express themselves.
What are Detractors?
Employees that are detractors are those who are dissatisfied and not loyal to their employer. They are more likely to be less productive than other employees, which might have a detrimental impact on the company’s profitability.
A high number of detractors is a warning indication for any company since it shows significant levels of employee unhappiness and attrition. Productivity ratios decline when there is a lot of instability and animosity in the workplace. Detractors are usually at the head of this.
On survey questions, detractors put a score of 0-6. This refers that they are extremely dissatisfied and unhappy with working in the organization. To tackle detractors, a system needs to be implemented in the organization.
In this system, the employees who provided negative feedback will be communicated why they felt so. Further suggestions and advice can be taken as well to help solve these issues.