ESI vs eNPS: Know the differences between these employee satisfaction metrics!

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Did you know that most companies that lose talent are not aware of the causes? This fact reveals the great importance of measuring employee satisfaction and loyalty. To do this, team managers have two fundamental metrics: the ESI (Employee Satisfaction Index) and the eNPS (Employee Net Promoter Score). 

And, although they may look the same, they are not!

In this article we are going to review in detail the different aspects of ESI and eNPS, what they are, how they work, how they are calculated and how they can help you improve the engagement of your workforce.

What is ESI?

The ESI, or Employee Satisfaction Index, is a happiness scale and measures the degree of satisfaction of employees with their work experience.

To measure this, we use the the question “How satisfied are you with your workplace?”. Although in Team Insights we prefer to ask “How are you feeling today?”

The response format is usually a Likert scale, such as 1 to 5 or 1 to 10, with higher numbers indicating greater satisfaction and lower numbers indicating less satisfaction.

How is ESI measured?

Measuring employee satisfaction is a good way to start taking the pulse of the organization. Although it does not allow you to go into detail, it does offer you a first snapshot of the state of your team.

This is a very short survey (one question!), so it is direct, non-invasive, and easy to complete. But how to interpret the results?

As we have said, employees respond by expressing their satisfaction with the organization through a scale of 1 to 5 or 1 to 10:

  • 4-5 or 9-10: high scores, meaning employees are happy.
  • 3 or 7-8: Neutral scores, implying there is still room for improvement.
  • 1-2 or 1-6: low scores from very dissatisfied employees.

After obtaining all the answers, we apply the formula and obtain a general percentage.

How is ESI calculated?

Calculating the ESI is very simple. You just have to add the high scores and divide the result by the total of the answers. Then multiply everything by 100 to obtain the percentage.

With the formula you will understand it better:

Anyway, using Team Insights you don’t have to calculate anything because the software does it for you automatically.

How do you know if your organization’s ESI is good?

Do you calculate the ESI score but don’t know how to interpret it? The truth is that scores usually vary depending on the region, sector, type of industry and even the age, gender or role of the person responding to the survey.

Even so, the main benchmarks indicate that organizations have an average score on the ESI scale of 7.8 out of 10 (78%).

So, a score above 7/10 or 3/5 is a good indicator that you are doing things right and your employees are happy and satisfied. And if the score is below, you will need to evaluate the situation in detail to find out what is not working.

When is the best time to launch a survey to measure ESI?

The ESI is ideal for measuring employee experience following key events. Here we give you some examples:

  • After major changes in company policy
  • After the implementation of new tools or processes
  • When completing large projects
  • After periods of high workload
  • After team building  events
  • When fluctuations occur in Performance Indicators
  • Periodically (for example, Annually or Semiannually)

What is eNPS?

The eNPS, or Employee Net Promoter Score, evaluates employees’ loyalty to the organization, so it goes far beyond satisfaction. Trys to find out to what extent team members are willing, not only to stay with the company, but to make it known to the world as a good place to work.

Like the ESI, the eNPS is also based on a single question: « Would you recommend our company as a place to work to a friend or family? “, where the employees respond on a scale of 0 to 10, with higher scores indicating greater loyalty.

How is eNPS measured?

Measuring eNPS is just as simple as ESI. At the end of the response period, data is collected and, depending on the scores, employees can be categorized into three different groups:

  • Promoters. Scores from 9 to 10. They are your brand ambassadors, fully satisfied and loyal people who recommend your company without hesitation. Furthermore, they are the ones who, faced with new employment opportunities, would prefer to stay where they are.
  • Neutral/Passive. Scores from 7 to 8. These are employees who, although they may be satisfied, still lack the push to promote the company as a recommendable place. You may lose them if you don’t act quickly.
  • Detractors. Scores of 6 or less. They are the most dissatisfied team members. You have to be careful, since these collaborators can damage the reputation of the brand by speaking badly about the company. In addition, it is very likely that they are thinking about resigning and leaving their job in the short term.

How is eNPS calculated?

To calculate the eNPS , first subtract the number of detracting employees from the number of promoting employees. Then, that result is divided by the total number of employees who responded to the survey.

This is the formula:

Unlike ESI, eNPS is usually not displayed as a percentage, but rather as a number ranging from –100 to +100.

If you use Team Insights , the eNPS score will be shown to you automatically without you having to do any mathematical operations.

How do you know if your organization’s eNPS is good?

Any result between 10 and 30 can be considered a good eNPS. Above 50 is excellent and if it is close to 80 or exceeds it… well, congratulations! Because that means that your way of managing the team is the best in every way.

And what happens if it is below 10?

eNPS score is between –10 and 10 means that your employees are not very happy. However, it is not a critical situation and, by effectively addressing the areas for improvement, you will be able to see how your eNPS evolves positively.

On the other hand, if the points range from –100 to –10, you will need to delve deeper into the result to understand what is not working and why it is not working.

When is the best time to launch an eNPS survey?

If ESI is ideal for one-time events, measuring eNPS must be an ongoing act. This way, you will be able to see the evolution of employee trends over the time they spend in the organization.

An eNPS survey , no matter how short, can tire employees if it is too frequent. If that happens, team members will stop responding, causing the drop in response rate to devalue its reliability.

On the other hand, if it is measured over very long periods, there is a risk of losing vital information for decision-making, as well as historical data with which to check its evolution.

So, it is very important to find balance. Our recommendation is to do it every quarter or every 6 months.

 

Both the ESI and the eNPS are essential tools to understand and improve the work environment in your company. While the ESI focuses on immediate satisfaction with specific aspects of the job, the eNPS measures employees’ loyalty and willingness to recommend the company as the best place to work. Using these metrics together, you get a complete view of your employees’ well-being, helping you take actions to improve their work experience.

With Team Insights , you can measure ESI and eNPS with a simple click . And not only this, you will also be able to see the evolution of the results in real time. You just have to register and launch your survey. It’s free!

 

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