Employee Net Promoter Score: How to Get Maximum Value
15 May, 2020
In today’s market, low employee satisfaction can result in high turnover and low productivity, costing businesses money. Many companies want to know how to improve the employee experience. A good first measure to determine employee satisfaction is the Employee Net Promoter Score (eNPS)
The Net Promoter Score (NPS) is used to measure customer satisfaction, and the eNPS works in a similar way. The eNPS helps businesses identify weaknesses and can be a good tool for improving your brand as an employer.
Read on to discover more about the scoring system, how it’s calculated, the benefits of an employee net promoter score, and more:
What is Employee Net Promoter Score?
A Net Promoter Score indicates an index ranging from -100 to 100. Businesses use eNPS to quickly get an idea of how satisfied employees are and whether they’re willing to recommend the company to others.
eNPS scoring as part of a businesses’ organizational structure helps HR and leaders determine the health of the organization. It is often used as an alternative to traditionally long and tedious employee surveys.
Employees answer key questions using an 11-point scale (0-10). A high score indicates high satisfaction and a low score indicates dissatisfaction. Even if businesses score ‘low’, this is still positive because it shows where improvements should be made.
Based on the range of scores, employees are classified into three groups:
‘Promoters’ give a score of 9 or 10. They are the people who are the most satisfied, and they are advocates who tout the company’s benefits to friends and colleagues.
Promoters can speak to the things your business is doing right and serve as a good source of information. Understanding why they are satisfied is important so you can replicate that across the rest of the company.
‘Neutrals’ give an eNPS of 7 or 8. They are generally satisfied with working at the company but are not highly loyal. This group is likely to leave for another employer if given the chance. They are neither going to promote or detract the organization but given a few efforts they might be changed into promoters.
‘Detractors’ give scores of 6 or lower. These are the employees who are not very satisfied with working for the company. Detractors are also categorized as the people who speak negatively, ones with the lowest gradings, about your organization and may even be damaging the businesses’ reputation.
It’s important to actively listen to detractors—looking for patterns in dissatisfaction like pay, gender equality, lack of professional development, etc. This group requires extra attention, so record their feedback. Detractors may offer up solutions that impact the business health of the company.
Why HR and Leaders Should Use eNPS
eNPS is a quick and easy way to gauge employee satisfaction and loyalty. In addition, the classification provided by the resulting scores allows businesses to target employee engagement in different ways, which positively impacts the business.
How to calculate the Net Promoter Score
Employee Net Promoter Scores are calculated by subtracting the percentage of detractor employees from the percentage who are promoters. This generates a score of between -100 and 100.
Businesses also often ask an open-ended question: “what are the reason(s) for the score you gave?” This gives companies that most valuable insight as to how to improve.
The Benefits of Employee Net Promoter Score
Here are some of the biggest eNPS benefits, particularly for HR professionals:
It’s a familiar business term.
HR professionals need to be familiar with business processes. Employee Net Promoter Scores are a great way to identify areas of strength and weakness and a way to talk about employee engagement in a business context.
It’s simple to use
The simplicity of eNPS scores and how quickly they can be facilitated throughout an organization is one of the reasons it is highly popular among businesses. It is easy to calculate and prevents survey fatigue from HR professionals and employees.
It aligns with the company.
You would be hard-pressed to find a company that doesn’t want referrals and satisfied employees. The eNPS is a great way to measure progress in relation to business goals.
Helps highlight where to improve
Employee Net Promoter Scores help HR professionals and company leaders identify what is negatively impacting the employee experience. You can even track keywords in surveys, for example, work/life balance, overtime, compensation, management, etc. You can also track trends over time as the organization continues to carry out these surveys.
It improves employee engagement
When employee feedback is used to make effective changes in the organization, the result is improved employee morale. Using feedback to make organizational changes makes employees feel that their opinion and well-being are valued. See our other posts on improving employee engagement:
- How to Establish a Sustainable Work Culture
- How to Measure Employee Engagement the Right Way
- Why You Need an Engagement-Driven HR System
It helps form a benchmark
As eNPS is implemented, it helps form a benchmark to look at the progress made (and how fast). You can also run eNPS scores against the average of your industry to see how engagement levels within the business compare to competitor scores.
Focus on employees helps the bottom line
Losing valuable talent and the process of hiring new employees is expensive for businesses. A measurement tool like eNPS is a first step in helping create a better workplace if the feedback is used correctly. This improves the bottom line because happy employees mean better output and more satisfied customers.
Ways to Get the Maximum Value out of eNPS (how to use it)
Conducting an eNPS helps you know your company better and how satisfied employees are working in that environment. A simple score provides the HR department with valuable metrics that can be easily understood across the company, and it can even be used as a KPI to keep track of overall business progress.
To get the maximum value out of Employee Net Promotor Scores, there needs to be a strategic follow-up for the three categories (promoters, detractors, and neutrals) and changes made as a result.
Using the right software can make the eNPS even more efficient. Heartpace is perfect for HR teams because it helps to measure eNPS by Pulse, facilitates objective-oriented 1:1 talks and team meetings, which support eNPS follow-up. Heartpace also offers free resources, like this sample employee engagement survey that you can begin using today.
Contact us today to learn how Heartpace can help improve HR practices within your organization and help your business see a better success rate in employee engagement.
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