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Unlocking Employee Satisfaction: A Comprehensive Guide to Employee Net Promoter Score (eNPS)

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Employee engagement is pivotal for organizational growth, mirroring the importance of customer engagement. Satisfied employees attract new talent, contributing to a company’s prosperity. According to Gallup, highly engaged workforces result in 23% higher profitability, 10% increased customer loyalty, and an 81% reduction in absenteeism. This article delves into the essence of Employee Net Promoter Score (eNPS), its significance, calculation, and strategies to elevate scores.

What is an eNPS®?

Similar to Net Promoter Score® for customers, eNPS gauges employee experience and loyalty. It measures employees’ willingness to recommend their company and reflects their satisfaction and dedication. Discover why eNPS is a vital performance indicator and how it influences workplace dynamics.

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How to calculate Employee Net Promoter Score®?

Employee Net Promoter Score® (eNPS) is a powerful metric that provides valuable insights into employee satisfaction and loyalty. Calculating eNPS involves a straightforward process, allowing organizations to quantify their workforce’s sentiments. Here’s a step-by-step guide on how to calculate Employee Net Promoter Score:

 Calculate eNPS® with the following formula: 

eNPS® = number of Promoters – number of Detractors / total number of respondents X 100

Or

eNPS® = Percentage of Promoters – Percentage of Detractors

Understanding the Categories:

Before diving into the calculation, it’s crucial to understand the three categories based on employee responses:

Employee Net Promoter Score : Definition, Survey Questions and Calculation Employee Net Promoter Score

Detractors (0-6):

Employees in this category are highly unsatisfied and unhappy with the company.

They are more likely to leave the organization.

Passives (7-8):

Employees in this group have a neutral attitude towards the company.

They are less likely to express negativity but are also less likely to actively promote the organization.

Promoters (9-10):

Employees giving a score of 9 or 10 are considered loyal and dedicated to the company.

They are most likely to promote the organization.

Example of Employee Net Promoter Score®

Employee Net Promoter Score : Definition, Survey Questions and Calculation Employee Net Promoter Score
Let’s take an example of a company that wants to understand employee satisfaction across different departments. The eNPS® survey was sent to the Marketing Department and the Customer Service Department. The number of responses they received from both departments is 1000.
  1. Marketing Department with 1000 responses
  • Promoters (9-10) = 700 
  • Passives (7-8) = 200
  • Detractors (0-6) = 100

eNPS = 700 – 100 / 1000 X 100 eNPS = 60

  1. Customer Service Department with 1000 responses
  • Promoter (9-10) = 500
  • Passives (6-7) = 250
  • Detractors (0-6) = 250

eNPS = 500 – 250 / 1000 X 100 eNPS = 25

eNPS® score is always a whole number. It cannot be a percentage. As a result of the survey, you find out that the Customer Service Department has a low eNPS® score. Therefore, you need to focus on that department and analyze the reason for such poor feedback.

Analyzing Results:

After obtaining the eNPS score, organizations can analyze the results to identify areas of improvement. If a department has a low eNPS score, it indicates potential issues that require attention. This insight allows organizations to focus on specific areas to enhance overall employee satisfaction and loyalty.

Calculating eNPS is a crucial step in understanding the employee experience, and with this straightforward formula, organizations can effectively gauge and act upon their workforce’s sentiments.

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Why should you use Employee Net Promoter Score®?

Employee Net Promoter Score® (eNPS) has become a cornerstone in gauging and enhancing employee satisfaction, and its adoption is on the rise across industries. Understanding the compelling reasons behind the utilization of eNPS is crucial for organizations committed to fostering a positive workplace culture. Here’s why incorporating eNPS is essential:

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More and more companies are using eNPS® to determine the engagement of their employees. Employee Net Promoter Score® encourages strong business performance among employees.  → Engaged employees provide better customer service and influence, other employees.  → Workplace culture and engagement play a vital role in employee loyalty.  According to research by Linkedin, 36% of people switched their jobs.

 The reason they provided was that they were unsatisfied with the office culture of their previous employer.  Apple and Rackspace use Employee NPS® in their in-house employees. They believe a happy employee is more successful in the making of the brand.  A simple question, “How likely are you to recommend this company as a place of work?” can help you determine employee engagement for your company. Related reads: Getting meaningful returns from employee experience programs.

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How to improve employee NPS®?

Employee Net Promoter Score : Definition, Survey Questions and Calculation Employee Net Promoter Score

More and more companies are using eNPS® to determine the engagement of their employees. Employee Net Promoter Score® encourages strong business performance among employees.  → Engaged employees provide better customer service and influence, other employees.  → Workplace culture and engagement play a vital role in employee loyalty.  According to research by Linkedin, 36% of people switched their jobs.

 The reason they provided was that they were unsatisfied with the office culture of their previous employer.  Apple and Rackspace use Employee NPS® in their in-house employees. They believe a happy employee is more successful in the making of the brand.  A simple question, “How likely are you to recommend this company as a place of work?” can help you determine employee engagement for your company. Related reads: Getting meaningful returns from employee experience programs.

1. Use eNPS® with other feedback programs:

Employee Net Promoter Score® may not provide enough data regarding the topic. The question may provide insight; however, you need to dig deep to gather valuable insights.  Combine eNPS® with satisfaction surveys, performance data, external evaluation, etc. This way, you can receive data on employee engagement and enthusiasm. Also, uncover factors affecting employee feedback. 

2. Communicate with promoters, passives, and detractors:

Gathering data is not the end of it. Don’t become satisfied after segmenting employees into the three categories.  Detractors signal the possibility of churn out, while passives can become detractors themselves. You need to ensure that you understand and uncover what makes detractors unhappy and the passives indifferent.  Don’t leave out your promoters because they provide high employee Net Promoter Score®. You can learn what you are doing right from them and devise a long-term solution to improve employee satisfaction.

3. Conduct anonymous surveys:

Some surveys should be conducted with the benefit of keeping the participant’s identity anonymous. Employees may feel shy or afraid to share an honest opinion, about their identity in the open. 

Make surveys anonymous to create a safe space for employees to offer their opinion. 

4. Follow-up with everyone:

Following up after a survey is important as it helps you gain more perspective. If you are not conducting anonymous surveys, you should have a list of employees who didn’t respond to the survey. Include these non-responders in the follow-up survey as well.  You may not have included them when calculating the employee Net Promoter Score®, you should target them in the follow-up. You may receive unexpected and valuable insights from them. 

5. Benchmark internal performance:

Set internal benchmarks to measure the improvement or lack of within the company. Comparing survey results can help you understand how to help your employees. This can help you prevent issues that result in low eNPS®.

6. Measure your eNPS® regularly:

Consistently tracking your eNPS® will help you ensure that it aligns with your EX goals. Deploying surveys after making changes will help you see how effective these changes are and if you have done it right.  Now that we have established six ways you can improve the score, let’s look at the benefits of employee NPS®.  Related read: Survey fatigue: Toeing the Line Between Follow-ups & Pestering Your Respondents!

Benefit of Employee Net Promoter Score®

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Easy and simple to conduct

It is an easy method of measuring and takes less time. It is easy to get started with an eNPS® survey with few questions. Employee Net Promoter Score® helps gauge the company’s overall welfare and is faster than traditional surveys.

Assesses employee engagement

The score reflects how satisfied your employees feel about the organization to recommend it to their friends. This allows you to understand how good the workplace or company environment is for employee engagement. As a result, you can also uncover the reason for low productivity or declining engagement. 

Offers a chance to change

The eNPS® provides a chance to improve and convert detractors and passives into promoters. Collecting feedback from detractors and passives and taking action has a high degree of improving the negative feedback to positive.  Opening the discussion with the employees and making changes in the workplace culture can lead to better eNPS results.

Tracks overtime for internal benchmarking

It is easy to track the employee Net Promoter Score® against past results. Deploy changes and conduct surveys to gather fresh scores. Use the score to see how much you have improved. This will help you learn where to focus and what needs improvement. 

Helps identify areas for improvement

You can use the eNPS® as a springboard to further investigate the problem areas. Conducting follow-ups can help identify underlying issues and other factors affecting employee engagement. 

Limitation of Employee Net Promoter Score®

The simplicity and ease of eNPS® make it a popular metric. However, there are some limitations as well. 

Does not capture the complexity

Often eNPS® is considered insufficient because it does not capture the complexity an employee experiences. It cannot perform alone to resolve issues or reasons behind the dissatisfaction of employees.

Not a stand-alone metric

The eNPS® is meaningful only when you can compare it with previous scores or scores of other Organizations/Companies. It cannot tell you much about the office environment on its own.

How often should you conduct eNPS®?

Determining the right frequency for Employee Net Promoter Score® (eNPS) surveys is crucial for obtaining meaningful insights and fostering a proactive approach to employee engagement. Here’s an enhanced version of the section:

Ideal Frequency: Every Three to Four Months

Conducting an eNPS survey every three to four months is considered optimal. This cadence strikes a balance between staying updated on employee sentiment and avoiding survey fatigue.

Rationale for Frequent Surveys:

Limited Questions, Maximum Impact: Given that eNPS comprises only a few questions, conducting surveys more often allows for a quick pulse check on employee satisfaction without being overly burdensome.

Timely Action on Insights: Speed in taking action on gathered insights is paramount. Frequent surveys align with the need for swift responses to identified issues, demonstrating a commitment to addressing employee concerns promptly.

Considerations for Survey Cadence:

  1. Actionable Insights: The speed at which you can take action on insights is a key factor. Frequent surveys enable organizations to address issues swiftly, reinforcing a responsive and appreciative workplace culture.
  2. Avoiding Perception of Inaction: Regular surveys should be accompanied by visible changes and improvements. If employees perceive a lack of action based on survey results, it may lead to a decline in participation and a sense of underappreciation.
  3. Balancing with Other Surveys: Bombarding employees with numerous surveys can lead to declining response rates and hinder productivity. Coordination with other survey initiatives is crucial to maintaining a balance and ensuring minimal disruption to daily work.

Communication is Key:

Informing employees about the survey schedule and emphasizing the importance of their feedback helps manage expectations. Transparent communication ensures that employees are prepared for the next survey and understand its significance in shaping the workplace environment.

 

Take a step in improving your employee NPS® today! Your employees should grow with your organization.

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Employee Net Promoter Score® is a start not the end

As a company with an aligned employee and business growth, evaluating employee engagement should be a continuous process. Employee NPS® highlights how much work you need to do to boost employee satisfaction and improve productivity.  Just how cricketers put in extra effort when they feel the love and respect of their fans. Employees also put in more effort when they feel respected and heard by the organization. 



Conclusion

Conclude the blog by reinforcing the importance of eNPS in fostering a positive workplace culture. Understanding and harnessing the potential of Employee Net Promoter Score® (eNPS) isn’t just about measuring satisfaction; it’s about fostering a culture of continuous improvement and employee-centric growth within organizations. Take the first step in this transformative journey with Voxco—empowering your organization to gather, measure, uncover, and act on valuable data. Book a demo today and unlock the full potential of your Employee Net Promoter Score.

FAQs on eNPS®:

What is the employee Net Promoter Score®?

eNPS is an effective way of tracking how employees feel about their experience and journey with the company. It measures employee loyalty, similar to how NPS measures customer loyalty.

What is a good employee NPS?

eNPS score ranges from -100 to +100, where 0 is an acceptable score. The standard score for each industry differs. So to determine a good eNPS for your organization, it is best to benchmark against your competitor. 

Employee NPS score helps you improve your business efficiency over time. While you don’t want to fall into the negative spectrum of the scale, there is no definite good eNPS. 

How to calculate your employee Net Promoter Score®?

Employee NPS® employs the same formula as NPS® for customers. You simply subtract the Promoters% from Detractors%. 

enps = % of Promoters – % of Detractors.

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