One of the most important employee metrics used in the field of HR today is the employee net promoter score. It gives valuable insight into the mindset of employees, whether they are loyal to the business, as well as their level of engagement.
What is an employee net promoter score, how do you calculate it and why do you need it? We address all of these questions in the how-to guide below.
What Is An Employee Net Promoter Score?
An employee net promoter score calculation drives home how employees perceive their work environment. And it measures the likelihood of your employees recommending you as a good place to work.
It’s similar to a net promoter score, the customer satisfaction scoring system on which it is based. A net promoter score measures customer loyalty by assessing if they would recommend your product or service to others.
Just as the net promoter score measures customer loyalty, the employee net promoter score measures employee loyalty.
Why It’s Important
Your company’s eNPS score is an important metric for two main reasons:
Constructive Employee Feedback
Measuring eNPS is a way to collect feedback from your employees. This feedback can give you valuable insight into employees’ perceptions of the company.
When there’s a vast difference in the eNPS from one department to the next, it brings to fruition the problems that you might not have been aware existed.
You can then investigate the cause of lower scores in particular departments to implement changes that will produce a higher eNPS score in the future.
Measures Employee Engagement
An employee net promoter score can indicate how satisfied employees are. When you measure eNPS you are also measuring employee engagement.
The eNPS score can show how effective your employee engagement practices have been (or haven’t been). Identifying lower scores in certain areas may give you more insight. And this is a great opportunity to rectify weak practices in your businesses.
Why focus efforts in these areas? Engaged employees tend to work harder and are more likely to stay with a company, thus reducing staff turnover and increasing your success.
Employee Net Promoter Score Calculation
Calculating eNPS can add immense value to any company. With the right survey software, you can easily implement regular follow-up surveys to check how scores change over time. However, eNPS surveys and the overall eNPS score cannot give much insight on their own.
Measuring employee engagement is important, but the results must be looked at from all angles. You need context to fully understand the results. An eNPS survey is only truly effective when combined with more comprehensive questions. And when looked at in conjunction with employee retention metrics.
Regular employee engagement surveys, in combination with eNPS surveys, will present you with a bigger picture.
Short surveys, with your eNPS questions near the top, will produce the most accurate results. Survey fatigue may set in quickly, which can affect their mood and therefore their responses.
That being said, the eNPS score provides a deeper understanding of employee engagement and employee satisfaction.
Calculating The Employee Net Promoter Score
An Example Of An eNPS Question
“How likely would you be to recommend X (your company name) as a good place to work?” One of the more usual ways to approach this survey question is with a scale of possible answers. The response may be entered on a scale of 1 – least likely, to 10 – most likely.
Analyze & Classify The Results
eNPS consists of three categories – promoters, detractors, and passives.
Survey respondents who choose a nine or ten are categorized as “promoters”. Employees who choose a six or below are “detractors.”
Anything in between is labeled “passives’. They’re generally satisfied with working for your company, but could probably do with more encouragement and recognition.
Count the total number of both promoters and detractors. You’ll need these figures to calculate your net promoter score. (see formula below). The detractor score will also give you a clearer picture of how much work needs to be done to further employee engagement.
eNPS Formula
Below is the formula for your eNPS calculation.
Subtract the detractor total (those who wouldn’t recommend your company) from the promoter total (those who would recommend). Divide this by the total number of respondents and multiply by 100 to get your eNPS score.
Technically, anything above zero is acceptable, but anything lower means improvement is needed to fully engage detractors. And bring the passives over to the promoter side. A number higher than 10 is considered a good score.
You can do this for the entire organization, or departmentally. The important thing to keep in mind is to not single out employees. They may be less likely to give an honest answer in this case.
Anonymous survey results give you a truer representation of employees’ attitudes to their work environment.
How The Employee Net Promoter Score Calculation Affects Your Company Long-Term
If your eNPS score is low, this can affect your recruitment needs and efforts. Low eNPS scores point to the possibility of an rise in employee attrition, increasing the burden on your HR teams and recruitment staff.
This can cost you time and money replacing valued employees. By realizing the need for re-engaging staff and enhancing job satisfaction, measuring eNPS scores saves you that extra work and expense.
Your employees may be giving the same feedback on job review sites, without your knowledge. These negative reviews may prejudice potential candidates who are considering applying for jobs at your company.
By utilizing eNPS surveys and scores, and finding ways to address low scores, you’ll achieve two things.
- Boost your employee retention, and lower voluntary turnover rates.
- Attract more quality candidates by showcasing your strong company culture and employer brand through high eNPS results. It could also be the prominent feature your website careers page needs.
Final Thoughts on Employee Net Promoter Scores
Regardless of whether employees respond with positive or negative feedback, employee net promoter score calculations help you to identify areas that require positive change.
Low eNPS scores highlight the need to improve employee engagement programs. And a good eNPS score enhances your employer brand, thereby attracting top talent.
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