Do you know if your employees are happy with your company? Do they consider your company a good place to work? And if so, to what extent would they recommend it to their friends? If you have ever asked these questions, there is a perfect indicator to give you all the answers: the eNPS, or Employee Net Promoter Score.
This performance indicator is essential to find out how employees feel in your organization and provides you with the information you need to improve business culture, boost employee satisfaction, and increase talent loyalty.
In this article, we are going to tell you what eNPS is, how to calculate it, and what benefits it has for your organization.
What is the eNPS or Net Promoter Score?
The eNPS is a metric used in People management to measure employee satisfaction and thus find out how loyal and committed employees are to the organization.
This indicator is derived from the well-known Net Promoter Score, used by the Marketing and Sales departments to determine customer satisfaction: if they are happy with a service, they are more likely to be loyal to the brand and recommend it to their acquaintances, thus increasing the number of sales.
The eNPS uses the same principle. If employees are happy at your company, they will speak well of it, sparking the interest of new talent and making those who are already inside less likely to want to go elsewhere.
Why is it important to measure eNPS?
The performance of an organization is a reflection of its employees. If they are not satisfied, their motivation and productivity will not be up to making the business work as it should.
Measuring the eNPS gives you the opportunity to find out privileged information so that you can improve people management processes, improve the corporate culture and enhance the global results of your company:
- Identify opportunities for improvement. The eNPS allows you to identify which aspects of your organization cause team members to be satisfied or dissatisfied. This allows you to focus on creating the right improvements that really have a significant impact on their engagement and satisfaction.
- Measure the impact of your actions. Have you recently implemented a new wellness program and want to know how it’s working? The eNPS can be used to understand how your initiatives affect employees and the work environment. Depending on the metric score before and after launching a new strategy, you will know if your actions are succeeding or not.
- Prevent turnover. The Employee Net Promoter Score can also be used as a preventative measure. Using it frequently, you can control its fluctuation. If the score drops drastically in a short time, it may be a sign that employees are disgruntled and planning to leave the company. Knowing this information, you can take measures to prevent a massive brain drain.
- Improve talent loyalty. Satisfying the needs of workers can be a factor that differentiates you from the competition. Favoring your employer brand helps retain talent and attract the attention of the best qualified professionals.
- Take care of people’s well-being. When you measure the eNPS, you are sending the message that the opinion and well-being of your employees are important. This fact makes people feel valued, fostering a feeling of belonging and employee motivation.
How calculate it?
The eNPS is one of the easiest metrics to calculate. The first thing you have to do is send a survey to all your employees with a single question:
- From 1 to 10, how much would you recommend to a friend or family member to work at this company?
Depending on the scores, employees can be categorized into three different groups:
- Promoters. They are the employees who rate the company with a 9-10. They are your brand ambassadors, fully satisfied and loyal people who recommend your company without hesitation.
- Neutrals/Passives. Those people who rate the organization with a 7-8. They are employees who, although they are not dissatisfied, are not enthusiastic either and consider that there are management aspects that could be improved.
- Detractors. These employees are those who have answered the question with 6 points or less. They are the most dissatisfied and disgruntled team members, and they represent a potential danger as they can damage the reputation of the brand by badmouthing the company. In addition, it is very likely that they are thinking of resigning and leaving the job.
Once we have categorized the scores, the eNPS is obtained by performing the following calculation:
The result obtained is a number that can go from –100 to +100 and represents the degree of satisfaction of the employees with the organization. In general, the criteria are the following:
- Between -100 and -10 points: Your employees are very dissatisfied and you should take urgent action.
- Between –9 and 20 points: The satisfaction of your workforce is low, but with some adjustments, it can be improved.
- Between 21 and 40 points: Your employees are satisfied, although you could continue implementing some improvements.
- More than 40 points: The satisfaction among the members of your team is very high. Congratulations!! Keep it up because you’re doing great.
Can we gather qualitative information from the Net Promoter Score?
The eNPS score alone only provides purely quantitative information. That is: we can know if the employees are happy or not, but we cannot know why.
So, it is very important that, after the main question, you add an extra one that invites the participants to reflect and explain their score with the contribution of their impressions and opinions.
Questions that are used to gather qualitative information in an eNPS quationnaire are:
- “Why would you recommend us?”
- “Why wouldn’t you recommend us?”
- “What factors have influenced your answer?”
- Please tell us what we can improve.
Find out your company’s eNPS with Team Insights
Team Insights is a simple but powerful and easy-to-use work engagement management tool that you can use even without knowledge of People Analytics.
Measuring eNPS with our solution is as simple as:
- Create a survey.
- Define the question and scoring parameters.
- Send it to all employees.
Once sent, the members of your team will receive an email in their inbox with a link to the questionnaire that they can complete in a few minutes, and you will be able to see the status of the answers and their results in real time.
With Team Insights you can:
- Measure the eNPS.
- Control employee participation.
- Monitor responses and see their evolution.