What is the Employee Net Promoter Score (eNPS) and how can you use it for your company?
The Employee Net Promoter Score (eNPS) stands for the "recommendation rate" or the willingness of employees to recommend the company as an employer. The eNPS is frequently used as a synonym for employee engagement, satisfaction, and loyalty. It is a highly simplified yet effective method for measuring current employee sentiment and evaluating the short-term effectiveness of employee retention and loyalty initiatives. This article explains what the eNPS is, how it is calculated, and how regular measurement can benefit your company.
How is the eNPS calculated?
To calculate the Employee Net Promoter Score, employees are asked a single question: "On a scale of 0 to 10, how likely is it that you would recommend your company as an employer to acquaintances?" The response is then assigned a numerical value based on the ranking of the likelihood of recommendation. This is referred to as "scaling" or "scoring" the given responses. For example, the eNPS is calculated as the percentage of employees who gave a "9" or "10", minus the percentage of employees who gave a "0" or "1". This percentage is then multiplied by -1 to obtain the eNPS.
What is a good eNPS score?
Anything above 0 is understood as a positive result: overall, employees would recommend you. The higher above 0, the better, with 100 being the best possible score. In this case, every single employee would have rated you with a 9 or 10. A good eNPS score ranges between 10 and 30. Anything above 30 is excellent.
Why you should measure the eNPS regularly
The eNPS is a popular and useful tool for measuring general employee sentiment toward their employer. Its major advantage lies in its simplicity and quick survey time. A single question can even be asked in between tasks and takes only a few seconds. But therein lies the catch: the eNPS does not provide a complete picture and can easily be misinterpreted or overestimated.
The eNPS is unsuitable
- For measuring employee retention
- For measuring engagement and satisfaction
- For assessing employer performance
The eNPS is well-suited
- for evaluating the direct impact of initiatives and measures
- as a "pulse check" to track progress.
- for identifying potential issues that could affect employees
What measures companies can take to increase their eNPS
Foster an inclusive and collaborative culture. People feel engaged when they feel valued and part of a team. Create a culture where employees feel comfortable sharing their ideas, asking questions, and showing curiosity.
Create an environment where employees can trust one another. Trust is an essential component of any healthy relationship. It enables people to support each other and feel comfortable raising concerns or asking for help when they need it.
Focus on recognition and appreciation. It is easy to take a loyal employee for granted and forget to thank them for their work.
Focus on employee retention. It is much more cost-effective to retain an employee than to hire a new one.
Conclusion
The Employee Net Promoter Score is a simple yet effective method for measuring sentiment within the company. It provides a quick snapshot and can help review measures at short intervals and identify issues early on.
