Employee Net Promoter Score (or eNPS for short), is a survey created for employees of an organization. It helps to measure employee loyalty through a series of questions. With eNPS organizations get a metric on how likely their employees are to recommend them as an employer.
The eNPS is based on the framework of the Net Promoter Score (NPS). The NPS measures customer loyalty, while the eNPS measures loyalty of the employee.
How eNPS is calculated
Responses in an Employee Net Promoter Score and What they mean.
Regardless of the reasons given, the eNPS sees all responses as numbers and groups such responses into three main categories. Detractors, Passives, and Promoters. Employees who filled between 0 and 6 are classified as detractors, 7 and 8 are Passives, while 9 and 10 are Promoters.
Detractors will not recommend the company as an employer to others. The number of detractors is a vital variable in calculating the Employee Net Promoter Score. To determine the percentage of detractors, the sum of all responses that chose between 0 and 6 is divided by the total number of responses in the survey and then multiplied by 100.
Passives refers to individuals who filled the survey and chose 7 or 8. Their answers show that they lack strong feelings towards the employee – negative as well as positive. Although it is assumed that they will not talk badly about the organization, they are neutral.
When calculating the Employee Net Promoter Score, the number of Passives is not considered. Experts believe that these individuals have a neutral standing about the organization, they do not affect the score. However, since the total number of responses includes passive individuals, the presence of those responses is still quite vital to the total and a high number of passives will keep the eNPS low.
To calculate the percentage of passive responses, add up all passive responses – those who choose between 7 or 8. Divide the sum by the total number of responses and multiply the result by 100.
Promoters are ready to go the extra mile to tell others about the organization. These employees are loyal and are of great value to the company.
Promoters are those who chose 9 or 10 in the survey. To calculate the percentage of promoters, the number of responses that chose 9 or 10 is divided by the total number of responses and the result is multiplied by 100.
Calculating The Employee Net Promoter Score
eNPS is calculated by subtracting the number of detractors from the number of promoters and dividing by the total number of responses. This number is then multiplied by 100.
Looking at this formula, we can see that promoters have equal positive effect on the score as detractors. Passives meanwhile are not part of the formula, but they add to the total responses why a large number of passives will lower the total eNPS but not have as negative an effect as detractors have on the total.
For Instance, in a survey for a company selling insurance policies, there were 50 responses, and the following is the breakdown.
10 responses between 0 and 6 (detractors)
10 responses between 7 and 8 (passives)
30 responses between 9 and 10 (promoters)
To calculate the Employee Net Promoter score = (30 – 10)/50 × 100
eNPS = 40
Employee Net Promoter Score can be calculated for companies that have several branches. If they are present in different regions, the eNPS can be used to evaluate the health of each branch of the company. Comparisons can be made; deductions are drawn, and actions be taken.
Measuring Employee Net Promoter Score
One of the biggest challenges to having a successful survey is when responses are not genuine. To achieve an effective and genuine eNPS measurement, the conditions surrounding the survey needs to be free of distractions and sources of error.
Create an Employee-friendly Work Environment
The main focus of the eNPS is the employees and if work conditions are unfavorable or below reasonable levels, it will be reflected in the survey. Employees are likely to give low ratings and will be very unlikely to tell others about the company if they feel intimidated or unwelcome at work.
There are several reasons and circumstances that can lead to a non-friendly work environment. Physical, emotional, and sexual harassment are common reasons that make workers uncomfortable. In such conditions, an employee will not in good fate recommend the company to others.
This survey takes different forms depending on the discretion of the company. Most of the time, it is beneficial for the eNPS to have anonymous responses. It could serve as a safe space for those who are too intimidated to come forward with their opinions.
People may be willing to respond to the surveys and state what they really think if the opportunity presents itself. That is, they are free from scrutiny and intimidation. Thus, even if they respond with low ratings on the number scale, they are free from adverse consequences.
It is not just enough to conduct the survey and get the Employee Net Promoter Score, the real work is just about to begin.
The management team should carefully review both the eNPS and associated free text comments, break it down, and turn it into action points, stating which department will be responsible for a specific action.
Transparency comes into play when the employer informs its employees of every step taken to address their concerns. Being transparent reflects accountability and professional courtesy, qualities that attract employee loyalty.
preferences and conditions change over time. Employees may have newer worries and some genuine concerns which are different from those of the previous quarter.
Therefore, it is recommended to conduct periodical surveys to keep updated with the feelings and loyalty level of employees. Also, the standard must be kept both in reviewing and analyzing responses. The process of addressing the feedback should be consistent as well.
The Employee Net Promoter Score is a proven inquiry to determine employee loyalty. The Promoter Score helps solve several problems and helps to understand the needs of the company’s workforce. It is easy to use and accepted as a standard metric for calculating abstract concepts.
However, it must be treated carefully and planned to execute its purpose. Steps must be taken so that responses are honest and reflect the true conditions and feelings of workers.