Your complete guide to calculating eNPS
- Last Updated: September 11, 2020
- 11.7K Views
- 4 Min Read
As an HR professional, you are constantly looking out for different ways to step up your organization’s people management skills. Employee engagement is more important than ever for increasing employee retention, customer satisfaction, and your organization’s overall bottom line. Your employees should be happy and engaged in their jobs. It’s that simple. But how do you measure and track engagement? An Employee Net Promoter Score (eNPS) is one metric that allows your HR team to understand what employees think about your organization. In this article, let’s break down the different aspects of eNPS, so you can get the most out of it.
What is an Employee Net Promoter Score?
eNPS is a part of the Net Promoter Score (NPS) developed by Fred Reichheld, Bain and Company, Satmetrix Systems, Inc. It’s widely used to assess and improve customer loyalty and satisfaction. Organizations also use it to find how willing their customers would be to recommend their products and services to others. Because of its simple approach, NPS was soon applied in the workplace to assess the loyalty and satisfaction levels of employees. This came to be known as the Employee Net Promoter Score (eNPS).
To find the eNPS, organizations ask their employees how willing they are to recommend their workplace to their family and friends on a scale of 0-10, with 10 being extremely likely to recommend and 0 being not likely at all. The reason for the rating is usually collected along with the survey. Employees who rate a 9 or 10 are called promoters, and they are usually highly engaged, happy, and satisfied with their organization. Those who rate 7 or 8 are called passives. They are not very loyal, but they are satisfied with their jobs. Those who rate between 0 and 6 are called detractors. These employees are not engaged or satisfied enough, and they will usually not recommend their organization to others.
Why should you use eNPS?
Employee experience is becoming the new customer experience. How you treat your employees will directly impact the service provided by those employees to your customers. You cannot improve your customer service without catering to the needs of your employees. Engaged employees go out of their way to improve your company’s image in front of your customers. However, according to the State of Global Workplace report, only 15% of employees are engaged with their jobs. When left unaddressed, employee disengagement can result in severe losses to your organization.
By calculating the eNPS of your organization regularly, you will be able to get an exact picture of how your employees feel about your organization. This will help you to develop successful strategies to engage and motivate your employees. Also, employees feel much more valued when their organization shows that their opinion matters and takes measures to improve their work experience. This will make them more committed to your organization’s growth and increase employee retention. Furthermore, unlike other surveys that involve multiple questions, eNPS can be calculated easily without much effort or time.
How to calculate eNPS?
Calculating eNPS is simple. The percentage of detractors is subtracted from the percentage of promoters (eNPS = % of promoters – % of detractors). The percentage of passives is not included while calculating the score. Your score can lie anywhere between -100 (All employees are detractors) and +100 (All employees are promoters).
For instance, consider that you have 200 employees. 160 (80%) employees are promoters, 10 (5%) employees are passives and 30 (15%) employees are detractors. The eNPS of your organization is +65 (80-15).
What to do after calculating the eNPS?
Once the eNPS is calculated, you can then take steps to improve employee engagement based on the results. You need to understand why your employees rated the way they did. If the ratings are positive, identify the reasons why your employees love your organization and continue to strengthen those strategies. If the ratings are not favorable, assess your people management skills and identify areas that need to be improved. Receiving this valuable feedback and not putting it into action will only frustrate your employees further. Cluster the answers together and identify the most common reasons why your employees won’t recommend your organization as a place of work. This will help you to develop targeted initiatives to improve your organizational culture. If the results are not clear enough, you can always conduct a follow-up survey to better understand the underlying issues your employees face.
At present, employees are giving more weight to how an organization treats its employees rather than on monetary benefits. Having a useful technique like eNPS will help you to understand where your organization stands in terms of employee engagement, satisfaction, happiness, morale, and experience. It helps your organization shift its focus towards your employees and introduce strategies and policies that support them. Try to conduct eNPS surveys frequently. Each time, strive to implement positive change based on your employees’ feedback.
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