Employee Net Promoter Score (eNPS)

February 28, 2022

For a business to function at its best, gathering customer satisfaction data is very important. But in the current time, organizations do not limit themselves to considering the satisfaction of the customers alone; employees have their roles to play as well.

So, how can organizations make sure their employees are satisfied and are happy with the company and its work-culture?  A simple solution is to gauge their employee engagement is through Employee Net Promoter Score. Studies show that companies with high percentage of employee engagement are more productive and profitable.

But how do we measure employee satisfaction. Let’s take a look.

What is an Employee Net Promoter Score and why is it important?

An Employee Net Promoter Score is a survey which is used to measure the loyalty of employees and how they feel about the organization which in turn helps in employee retention. Additionally, it gives an idea of the probability of the employee to suggest recommend the organization to his friends or family as an ideal place of work. Taking an eNPS helps the company evaluate the engagement of the employee and how satisfied they are working with the organization.

Why Employee Promoter Net Score holds such importance is because it is a simple and precise way to analyze what the employees perceive the company as and what affects their performance. There might be good as well as bad reviews about the organization, it is all about how motivated the employees are.

Click Here to Learn More about Employer Branding

How to Calculate an Employee Net Promoter Score?

“How likely are you to recommend this company to your friends and family?”

That is the brain-twister we are working with. This question sums up the entire calculation of the eNPS. The scale ranging from 0 to 10 measures the eNPS, where 0 stands for ‘Unhappy’ and 10 stands for ‘Very Happy’. The calculation is done based on three categories of responses: the promoters, detractors and passives.

Promoters are the happiest employees of the organization, who will happily recommend the company to their friends and family. They are highly satisfied with their job and love working at the company.

Detractors are the most unhappy employees in your organization, who will never refer your organization to anyone and instead will deteriorate the growth of the company.

Whereas, Passives are the neutral lot who might or might not like working at your company.

Now, to shrink the scale of 0-10 to a score, we reduce the percentage of Detractors recorded from the percentage of Promoters. And there, you have your Employee Net Promoter Score!

Calculations and Formulas for eNPS

Taking the technical route of calculating your company’s eNPS, you calculate the difference between promoters and detractors and divide the same by the total number of responses and multiplied by 100.

Formula of eNPS:

eNPS = Number of Promoters – Number of Detractors/ Total number of responses x 100

To understand this better, let’s take a big Fintech company as an example. This company has employees all over Asia and now wishes to calculate its eNPS.

Receiving about 4000 responses from employees all over Asia, the responses are divided as:

200 responses ranged between 0-6, are the Detractors

500 responses ranged between 7-8, are the Passives

3,300 responses ranged between 9-10, are the Promoters

According to eNPS formula: Promoters – Detractors/ Total Responses x 100

3300-200/4000×100 = 77

Make sure that the Employee Net Promoter Score is always shown as a whole number and not in percent.

Therefore, the eNPS of the company is 77

This shows that the company has a good eNPS and most of the employees are satisfied by their work at the company.

Now, the company can calculate region-wise and city-wise score to compare and gauge which section of the company needs more attention and improvement.

Benefits of eNPS

The benefits of eNPS are several and prove how it can help companies improve their employee engagement and help employees be more satisfied. Here are a few of them:

1. Reflecting the loyalty of employees

Employee Net Promoter Score evaluates how engaged and dedicated the employees are to the organization. It is very cost efficient and prompt way of securing ideas as to which part of the organization has lesser output and why; a quick survey question beating the old process. It is a resourceful way of analyzing how involved employees are and how happy they are with their jobs.

2. Identify and Rectify loopholes in the company culture

The survey aims to identify the drawbacks in the company culture as seen by the employees. Each negative response recorded is feedback that the employees have about the company, where they can mention what they felt can be improved. The company can take a note of this feedback and work towards it, in turn helping the company run more efficiently by improving its employee engagement and productivity.

3. Reduced Employee Attrition in the long run

An accurate measurement of the eNPS allows the company to focus more towards improving its policies and employee engagement in order to retain more employees. The survey denotes whether the employees are happy and satisfied or whether the company is lacking in their work-culture somewhere. If the employees are not satisfied, then steps can be taken towards improvement, thus reducing the employee attrition in the longer run.

Tips to Use eNPS Effectively

1. People in leadership roles, managerial roles and team lead roles should have a knowledge about why eNPS is useful and how is it conducted.

2. This survey renders an accurate way of gauging employee satisfaction while being as easy as a finger touch on the screen, giving quick and easy responses.

3. While giving out the survey, the company can maintain anonymity so that the employees do not feel obligated to punch in good responses rather than being honest, thus maintaining the trust between the two.

4. Understand what is important for your employees. Along with their work focus on their holistic well-being. This will keep your employees happy and satisfied with their work.

To calculate the Employee Net Promoter Score for your organization, write to us at connect@kernculture.com or visit our website www.kernculture.com

Leave a Reply