What is the employee net promoter score?
An effective way for companies to find out how to make their workers happier and more engaged is to use the Employee Net Promoter Score (eNPS). It is a straightforward indicator of how satisfied workers are with their work environment and how likely they are to suggest their company to others.
Learn the ins and outs of eNPS calculation, data analysis, and strategy development in this article.
One way to measure how invested workers are in their company is by looking at their net promoter score. It is a measure of the extent to which your employees would suggest your company to their friends and family as an excellent place to work.
The statistic provides insight into the level of happiness and satisfaction among your employees, as well as their likelihood of staying with and recommending your organization to others.
Compared to businesses with disengaged employees, those with an engaged staff generate 21% more profit and 17% more output, according to a recent Gallup poll. This highlights the significance of knowing how engaged your employees are and seeing issues before they affect your company’s bottom line.
Differences between eNPS and NPS
eNPS is similar to NPS, which asks customers how likely they are to tell their family and friends about a business’s goods or services. This is used to measure customer loyalty and satisfaction. Despite the fact that eNPS and NPS measure different types of satisfaction, there is typically a correlation between the two.
An organization’s net promoter score (eNPS) is a good indicator of its NPS since, generally speaking, satisfied workers are more inclined to go above and beyond for consumers.
Why is it important to measure eNPS?
You can take instant action based on your eNPS score, which can show you how engaged your employees are.
The pros and cons of using it to gauge workers’ satisfaction with their jobs are as follows:
The benefits of the employee net promoter score (eNPS)
- Practicality: Workers can get the job done quickly and easily.
- High response rates: All of your employees will take the time to fill out the eNPS because of how simple and fast it is.
- Efficient data collection and analysis: eNPs survey results may be shared and a plan of action drawn up more quickly. You can handle situations quickly before they get worse with the instant response.
- Honest feedback: The answer to the question “how likely is the employee to suggest the organization as a place to work?” shows how the employee really feels about their employer. People are more inclined to be honest about their level of happiness or discontent with their job if they may answer the question anonymously.
- Continuous monitoring of employee engagement: The eNPS poll is easy to set up and use, so you can do it more often. This makes it possible to keep an eye on employee engagement over time.
Issues with the employee net promoter score:
- Limited outcomes: Other facets of employee engagement, such as staff motivation and retention, are not covered by the the study. Although these ideas are fundamental to the people strategy and engagement of the company, eNPS does not address them.
- Methodological restrictions: The eNPS score does not provide an accurate depiction of the amount of participation within the firm if the majority of respondents are passive.
- Pays insufficient attention to context: With just a single metric to gauge employee engagement, it’s impossible to draw any meaningful conclusions. The eNPS score is quantitative data, and HR does not have any qualitative evidence to back it up.
Is there a way to quantify eNPS?
To run and measure your eNPS, follow these steps:
Step 1: Make a poll.
Human resources can administer a conventional electronic NPS survey that asks workers to rank the probability that they would suggest their employer on a scale from 0 (not at all likely) to 10 (extremely likely).
Step 2: Sort Answers Into Categories
Following the completion of the survey, HR is responsible for classifying and tallying the responses provided by employees (more on this in the next section).
HR expert tip
Classify comments according to common themes: Go over the employee comments and put similar ones in one folder. Doing so will aid in locating typical problems and potential solutions.
Step 3: Evaluate the outcomes
Human resources should review the computed eNPS and pinpoint problem areas. Trend analysis, cross-team or cross-departmental comparisons of eNPS scores, or issue-specific analysis of open-ended survey responses are all viable methods.
Enhanced engagement and happiness among workers may boost retention, output, and company results; HR may play a role in this by monitoring eNPS on a regular basis and acting to fix problem areas.
HR expert tip
In addition to the Net Promoter Score (NPS) survey, you should also ask for input from company executives and managers. This might help shed light on the strengths and opportunities for growth in the workplace. Furthermore, leaders and managers can play an important role in putting the survey’s recommendations into action.
How to calculate the employee net promoter score (eNPS)
In order to determine eNPS, we divide the employees’ ratings from 0 to 10 into three groups:
- Promoter employees are those who have shown extreme happiness and satisfaction with their work environment by giving a score of 9 or 10.
- Employees that scored a 7 or 8 are considered passive or neutral since they will either speak well of the firm or speak poorly of it.
- Employees who rated their level of satisfaction with the company as negative (between 0 and 6 on the scale) are considered detractors.
The next step is to find out how many workers fall into each category and what percentage they make up overall.
To determine an employee’s Net Promoter Score, use the following formula:
eNPS is equal to the percentage of promoters minus the percentage of detractors
Case studies of employee NPS
Here are some examples of eNPS score calculations based on various scenarios to help illustrate the point:
Example 1:
eNPS performed on a business with sixty workers:
30 workers are promoters.
20 workers are passive.
10 workers are detractors.
For eNPS, use the formula (30 – 10) / 60 x 100.
eNPS is equal to 33.3
The analysis shows that the company has more promoters than detractors, which is usually a good indicator, with an eNPS score of 33.3. To be sure, there is space for growth; after all, an eNPS score of 50 or above is good.
Example 2:
eNPS performed on a company with a thousand workers:
400 workers are promoters.
150 workers are passive.
450 workers are detractors.
Equation for eNPS: eNPS = (400 – 450) / 1000 x 100
NPS equals -5
An eNPS score of -5 indicates a high level of disengagement among employees, suggesting that there are more negative voices within the organization. In order to improve morale, the company should make employee engagement programs a top priority.
Example 3:
eNPS performed on a corporation with branches in different regions:
Assume for a moment that this firm wishes to determine the eNPS score for each of its four regional offices located throughout the country.
Office 1: NYC
30 workers are promoters
20 workers are detractors
eNPS: 10
Office 2: San Francisco
40 workers are promoters
30 workers are detractors
eNPS: 10
Office 3: Chicago
50 workers are promoters
15 workers are detractors
eNPS: 35
Office 4: Texas
20 workers are promoters
25 workers are detractors
eNPS: -5
Analysis: Based on these results, Office 3 stands out with the highest eNPS score. This suggests that Office 3 has incredibly loyal and happy employees who are more than willing to brag about the company’s fantastic workplace.
A low eNPS score for Office 4 indicates that there are more negative than positive reviews of the organization, and that workers there are not inclined to suggest it to others.
What is an acceptable employee net promoter score?
The net promoter score for employees might be anything from -100 to 100. “Good” eNPS scores fall between 10 and 30, and “outstanding” values range from 50 to 70. Anyone with an eNPS score above 80 is probably among the top 1% in their field.
An acceptable score is considered to be anything that is greater than zero, which indicates that there is an equal distribution of promoters and detractors. The only thing to watch out for is having an excessive number of detractors relative to promoters.
The most important thing is that your current score is better than your previous records, not whether your score is “good” or “bad.” Or keep your score at a respectable level.
Typical values for employee NPS
Sectors vary in employee net promoter scores. According to Perceptyx’s research, the general benchmark for employee net promoter score (eNPS) is 12, however other studies put the average eNPS at 14 for all companies reporting eNPS data.
As part of their study, they developed eNPS standards for the following industries:
Telecommunications: 27
Healthcare: – 6.5
Information technology: 26
Manufacturing: 13
Many tech companies have eNPS scores of 75 or more, even though the norm is 26.
Evaluating the eNPS of your company
Ranking ENPS scores can be a bit tricky. Not only does scoring differ among sectors, but it also differs across various kinds of organizations and jobs.
Therefore, it is not a good idea to compare yourself to other businesses. It is difficult to get reliable results. Also, the results may not have information that is useful for your business. Just because you have a higher score than your competition doesn’t mean your eNPS is outstanding. Why? Employee happiness and experience may take a back seat to the organization’s unique set of circumstances, culture, strengths, and problems, as well as any applicable regulations.
Compare the present eNPS scores of your company to their historical performance. Looking at the results over a longer period of time can reveal patterns in the way your employees perceive your company. Your eNPS scores may exhibit cyclical patterns as a result of shifting company goals and external factors. To find out where you are in relation to the competition and what you can do to improve, it’s a good idea to compare your scores to those of others.
In order to succeed, you need to raise your eNPS score. For instance, if your eNPS was +5 in 2023, you should try to get it to +10 this year.
The most effective methods for eNPS benchmarking
When benchmarking your scores, keep these things in mind for the best results:
To gauge the impact of such decisions on employee engagement, administer eNPS surveys quarterly, semiannually, or following significant business milestones. Roll them out whenever there is a change in company policy, organizational structure, incentives, or business direction, for instance.
Because it impacts your eNPS score baseline, the survey channel you pick to administer your survey should be carefully considered. With regional offices or remote workers in mind, it’s important to think about which channel—SMS, email, paper, app, phone call, or online form—will yield the best results. Make sure your survey is easy to access and that it accurately measures your eNPS scoring benchmarks’ progress.
If your eNPS score changes significantly, either up or down, it’s a good idea to do a follow-up survey. Keep it brief to prevent respondents from becoming poll fatigued and ask open-ended questions to understand the score’s context, including any unaccounted-for aspects.
Strategies to raise the NPS of employees
Here are some things you can do if your eNPS score is low:
Learn what might be causing poor reviews. Hold meetings or send follow-up emails. Inquire as to what upper management can do to boost the company’s image as a great place to work. You can learn more about the reasons behind employee dissatisfaction with the organization by asking them follow-up questions. Show your staff that you value their opinions and are willing to listen to their ideas for a better workplace.
A great technique to gauge employee happiness and engagement is to conduct regular surveys to get their thoughts and opinions. Human resources departments can use surveys to pinpoint problem areas in training, leadership, communication, and company culture. Notifying the organization of the survey’s findings and any subsequent plans to resolve the issues is crucial.
Respond to survey comments: Based on the results, take steps to address employee input. Increase your company’s learning and development programs, for instance, if a large number of responders want to advance in their careers. In addition to traditional classroom and online learning, you should investigate alternative training delivery techniques, such as mentoring or work rotation.
A highly satisfied and engaged workforce is the result of a positive workplace culture, which you should strive to cultivate. By spreading upbeat messages, praising employees, commemorating milestones, encouraging a healthy work-life balance, and providing wellness programs, HR departments may foster a happy work environment. Staff members who like and contribute to their work are more inclined to speak highly about your company.
To keep your employees happy and loyal, you need to pay them a competitive wage and provide them a generous benefits package. Human resources departments should evaluate pay and benefits packages on a regular basis to keep them competitive and appealing to workers. Providing healthcare, retirement programs, and paid time off demonstrates that your firm prioritizes the well-being of its employees and helps boost their eNPS score.
Employees are more loyal to companies that provide room for professional advancement, therefore it’s in your best interest to put money into training and development programs. Online courses, mentorship programs, and work shadowing opportunities are all ways in which HR departments can support their employees’ professional growth and development. A higher eNPS score is a direct outcome of an investment in staff training and education, which boosts engagement and contentment on the job.
Maintaining a healthy work environment and keeping workers engaged requires excellent communication. When it comes to company news, policy changes, and updates, HR teams should be completely forthright and honest. Maintaining open lines of communication makes workers feel more invested in the company and more heard when major decisions are being considered.
Staff members’ eNPS questionnaires
Following up with an employee to find out why they are suggesting (or not referring) the organization to others is a good idea. If you want to get qualitative data to back up your scores, make these questions open-ended.
You can customize your eNPS survey by using the following questions:
- How did they arrive at that score?
- Is there anything we can do better as a company?
- Please tell me one positive aspect of this organization.
- To what extent would you hesitate to suggest this business to others?
- In your time here, what has been the most difficult situation you’ve had to handle?
Advice on how to use eNPS effectively
Human resources can maximize the usage of the employee net promoter score by using the following strategies:
- Always keep an eye on your eNPS: Without a systematic approach to survey administration, the HR team will have a hard time determining how each score relates to actual change. The best way to find out if your efforts are paying off is to conduct regular eNPS surveys and look at the patterns and developments in the company’s eNPS.
- Sort your results: Get down to the nitty-gritty by breaking out your engagement by team, line of work, or personnel level to get a full view of your staff’s involvement. For example, by utilizing the tenure filter, you can gain insight into how new hires view the potential for advancement within your organization. If you want to examine how engaged different groups of employees are, you may get a more detailed look at your survey results by segmenting your data.
- Make boosting employee engagement a top priority: Also, make sure you’re paying attention to your Promoters. You may learn a lot about their level of engagement and the reasons they suggest your company to others by reviewing their responses. Let’s say that most Promoters like that the company lets them work from home. To improve internal communication and teamwork, the business can put more money into technological solutions. Another option is to inquire about the possibility of implementing a more flexible work schedule. This would allow employees to come in at their most productive times, provided they meet their daily production goals.
Essential points to remember
- With the help of employee net promoter score, companies can easily measure the level of engagement among their staff.
- HR can find the employee net promoter score (eNPS) by having workers rate how likely they are to recommend their company on a scale from 0 (not at all likely) to 10 (extremely likely). Then, they take the score and subtract the percentage of workers who scored 6 or lower from the percentage of workers who scored 9 or 10 to get the total.
- Sectors vary in employee net promoter scores. Tolerable values are those that are more than zero. It is more critical to compare your score to your record than to compare it to scores from other companies. The objective is to outperform the prior showing.
- If you want your eNPS survey to provide the best results, it’s important to keep close tabs on your ratings, divide your survey into different groups within your company, and work on improving your employee engagement strategies all the time.