What is eNPS?
eNPS or Employee Net Promoter Score is an effective way of gauging the sentiment of your employees and understanding their loyalty within the organization. Also, it's a good indicator of employees' feelings towards the culture initiatives of the organization.
Like NPS, the Employee Net Promoter Score (eNPS) system consists of a two-question survey.
The first question asks employees to rate, on a scale from zero to ten, how likely it is they would recommend the organization as a place to work. The second is an open-ended question asking why they chose the rating they did. A good practice is to conduct an eNPS survey once every quarter.
How does eNPS work?
The system generates a score using the responses to the first question, first by sorting ratings into three categories: promoters, with ratings of nine or ten, passives or neutrals, with ratings of seven or eight, and detractors, with ratings of six or below. Promoters are those employees who are highly satisfied and likely to recommend your organization as a place to work. Passives are employees who are satisfied enough to be content but may not be entirely engaged. Detractors are those who are unlikely to recommend their organization, which may indicate some level of employee dissatisfaction.
as shown below:
The first step in calculating your employee engagement score is to divide the answers to the eNPS questions into three categories:
- Promoters: score 9-10
The employees gave the best scores. They are considered highly committed and are ambassadors for your organization.
- Passives: score 7-8
Even if these employees don’t really have a negative view of their experience within the company, they’re not really engaged either.
- Detractors: score 0-6
They are the ones who gave the lowest scores to the eNPS questions. These employees are clearly disengaged.
The formula to be used afterwards to calculate your score is the following :
- eNPS = % Promoters – % Detractors
For example, if a company has : 80% promoters, 5% passives and 30% detractors, its eNPS score is : 80 – 30 = 50
How effective is eNPS?
Apart from helping the organizations understand the actual sentiments across their employees, eNPS also has many other benefits:
eNPS is less time consuming
As an HR, conducting eNPS surveys barely take any time or efforts but it comes with rich and actionable data from your employees' responses.
It usually has an higher engagement rate
Consider conducting your quarterly or annual employee satisfaction or engagement surveys. A typical engagement rate for eNPS is much higher than those annual surveys.
It has an easy buy-in
eNPS surveys are quick and easy to sell to your employees as well. When the employees buy in to any of your initiatives, the participation rate, and eventually the impact rate goes up.
It can be anonymous
Unlike other surveys, where you sometimes need to know the source of the response, eNPS can work wonderfully while being anonymous and employers should take full advantage of it.
Why does eNPS matter?
As stated earlier, eNPS comes very handy in quickly understanding where the employees of your organization stand.
Apart from building a great culture, one of the best ways as mentioned here, it is imperative to gauge how your culture is doing from time to time. We all know how much money is lost when an employee leaves, leaving behind a huge void for HRs or CXOs to fill. It takes a lot of time, effort, money and lost productivity to replace the vacant position and then once a suitable candidate is hired, training them and catching them up to speed with the speed of the organizational work. Rough estimates to replace an unhappy client can go up to $120k/year for each vacant position. That's a lot of money and time lost.
Imagine having a system in place which rapidly diagnoses and catches any cultural anomalies or unsatisfactory reviews from the employees before they amplify into something big and expensive like employee turnover, attrition, etc. Imagine how much time and money it would save you and the company, especially when the businesses is booming and you need all hands on deck. It only makes sense to never let anything like this happen in the first place. And eNPS is such system that allows you to quickly identify culture-killer problems and quickly fix them.
Final thoughts on eNPS
There are many tools that will help you understand the eNPS of your organization, some of them can help you do these things manually using tools like Google Forms or Survey Monkey. We, at Nasch, have automated the whole process giving you rich information on eNPS scores, causes & effects helping you derive insightful and actionable data to quickly fix your culture-related issues and drive your organization towards success.