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What Is eNPS and Why Is It Important?

Tuesday, March 22, 2022

What Is eNPS and Why Is It Important?

The primary measure of a company's success and reputation has been customer satisfaction for a long time.  In the 90's, companies have introduced the concept of ‘Net Promoter Score' to measure the popularity of their products and services. This is calculated by asking a simple question and aggregating the answers to: How likely are you to recommend our product to your family and friends?

‍ If you currently calculate your product's Net Promoter Score (NPS) to measure customer experience, you need to know that you can measure your employee's satisfaction rate with an NPS metric too. This is important because employee experience, including their engagement and overall satisfaction, is crucial to a company culture and it's bottom line.‍

What's eNPS?

‍ eNPs is short for Employee Net Promoter Score and just like NPS, it provides deep insights on recommendations but instead of focusing on the customer's experience, it measures the employee's experience and employee engagement. Understanding your staff's engagement level can help improve welfare, and in turn boost productivity and happiness levels.

‍ Fulfilment in the workplace will motivate them to provide the best of their abilities and remain loyal to the company. Employees will feel heard, less strained and reduce the chances of bringing home workplace stress. This is highly beneficial to all companies.

‍ How Does eNPS Work?

‍ To determine the eNPS of your employees, a few sets of surveys can be sent to different individuals in the company, depending on whether they are newly hired employees, current employees or employees who are leaving.

‍ Instead of open-ended answers, the survey is quantitative. Employees will rate their satisfaction or engagement level through a series of multiple-choice questions. Often, employees can be categorized easily based on the scores they gave.

eNPS asks employees if they would recommend the company to a friend or family member. The employee can then respond using a slide scale---from very unlikely to highly likely.

What Are Some Examples?

‍ The most important question to date has to be: 1. How likely are you to recommend us as an employer? (1 being the lowest and 10 being the highest)

10 – Highly Likely 9 8 7 6 5 4 3 2 1 0 – Not at all Likely

‍ Why do we think this is crucial in every eNPS survey? When a new employee first joins a company, he is usually highly motivated with the new job scope and a change in environment. Hence, his rating may have a bias.

But once he takes this survey after probation, his score may or may not change. Progress can also be monitored from before suggestions are received and after improvements are completed. ‍

So How Do You Calculate the Scores?

‍ When answering the above survey question, employees pick a number from 0 to 10, with 0 being not at all likely to 10 being highly likely. Responses are then categorized according to:

1) Score 0 to 6 are Detractors (Employees who are unlikely to recommend you as an employer)

These are workers with the lowest employee satisfaction and employee engagement. As a company, your goal is to decrease the number of people who gives you a low eNPS score.

2) Score 7 to 8 are Passives (Employees who are indifferent and may become detractors or promoters)

These are employees who are considered neutral or "passive." These workers are not active supporters of your brand but are also not ones to talk negatively about the company. These employees feel satisfied with their job, but not enough to be fully committed to championing your company to people they know.

3) Score 9 to 10 are Promoters (Employees who are highly satisfied and will recommend you as an employer)

People who give out high eNPS scores are happy employees. Workers who fall into this category have the highest employee loyalty and are very much willing to vouch for your company.

‍ After collating the responses, the percentage of detractors should be subtracted from the percentage of promoters. Those who responded with passives will not be calculated as they are neither satisfied nor dissatisfied with the employer. The more promoters than detractors there is, the more satisfied the employees are.

What Is a Good Employee Net Promoter Score (eNPS)?

While there is no universal benchmark, a general rule is to aim for a positive score on your company's eNPS. A positive score means you have more promoters than detractors.

Alternatively, if you have a higher negative score after calculating eNPs, it may be time for you to dive deeper into the root cause and collect feedback. This will help you get a clearer picture of the company and help you build strategies to increase your employee net promoter scores, employee satisfaction and employee loyalty.

That said, you should never measure employee satisfaction or measure employee engagement by only using eNPS. The system should be one part of a larger employee feedback and engagement surveys strategy.

How Does This Benefit Your Company?

Many organizational psychologists argue that eNPS is too simplistic. They say the system does not fully capture the complexity of an employee's experience. They also note that the result will only be meaningful if compared to a precious employee net promote score test or the eNPS score from another organization.

While eNPS is unlikely to give you a complete picture of how your workers feel, it is a good starting point for you to create a more holistic view of the employee experience.

To get the most out of employee net promoter score (eNPS), it may be best if you ask your promoters some follow up questions. These questions can include things like why they like you. Similarly, you can also ask detractors to cite reasons why they don't like your company. ‍

With the competition for talent being at an all-time high, it is essential that a company ensures the satisfaction of its current employees to reduce turnover, and that it creates the employer brand that will keep attracting the best new hires. We hope that with this blog we have inspired you to invest in your Employee Net Promoter Score.

The Qualee platform allows you to send regular and bite-size surveys to your employees, giving your organization a real-time overview of your eNPS. Listen to what your people have to say and create an engaging company culture with Qualee - sign up for our FREE Starter Plan today.

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