What is eNPS – and why is it such a great metric for HR to track? Employee Net Promotor Score is increasingly being used as a KPI by HR departments, and for good reason. Let’s have a closer look at how it works and why it’s so useful.
Related reading: Employee engagement survey questions – what to ask and why
Table of Contents
What is eNPS (Employee Net Promoter Score): Definition
How to measure eNPS
Formula for measuring Employee Net Promoter Score
What is a good eNPS score?
Benefits of measuring Employee Net Promoter Score
Conclusion
Definition eNPS
eNPS is short for Employee Net Promotor Score. It's a score used by companies to measure employee engagement and employee satisfaction. This way of measuring employee satisfaction is based on the same logic as the perhaps more commonly known metric Net Promoter Score (customer NPS), which companies use to calculate customer satisfaction and measuring customer loyalty. In this scenario, HR is the company, and employees are considered the customers. It's common for HR departments to use the eNPS as one of their main KPIs.
How to measure eNPS
The survey consists of one very straightforward eNPS question that everyone in the organization is asked to answer. The survey question is:
“On a scale from 0-10, how likely are you to recommend this company to your family or friends?”
The answer options range from 0 to 10. 10 means “Extremely likely,” and 0 means “Not at all likely.”
Following the same logic as with NPS calculations, the answers are then divided into three categories:
0-6: Detractors. These are the employees who are highly dissatisfied with the organization. There is a serious risk that they may spread negative word of mouth.
7-8: Passives. This group of employees are neither emotionally invested nor disengaged in the company.
9-10: Promoters. Those employees are very loyal to the organization and likely to talk positively about the company.
Formula for measuring Employee Net Promoter Score
The Employee Net Promoter Score is calculated by using the following formula:
eNPS = % Promoters - % Detractors
The result can range from -100 to +100.
Or, if we put it in words: you arrive at the employee Net Promoter Score by subtracting the percentage of detractors from the percentage of promoters, and multiplying the number you get with 100. The score is always reported as a whole number, and not as a percentage.
Related reading: Employee engagement surveys and benchmark data
What is a good eNPS score?
Eletive’s guidelines on how to interpret your eNPS is as follows:
0 – 20 is Good, 20 – 50 is Very good and above 50 is Excellent.
Benefits of measuring Employee Net Promoter Score
An overview of engagement and loyalty
One big benefit of the Employee Net Promotor Score is that it’s an easy way to quickly understand how loyal and engaged a company’s employees are.
A widely used method great for benchmarking
As more and more companies start using eNPS, it’s becoming an increasingly relevant number to use for benchmarking.
One simple question reveals a lot of information
One benefit of the eNPS is the simplicity. It’s just one simple question, so no risk for survey fatigue if you repeat it.
Calculating eNPS can help you reduce staff turnover
If your eNPS score is low or decreasing, this is an indicator that there are issues that need to be addressed if you are to keep your talent.
You can turn detractors and passives into promoters
One benefit of the eNPS score is that it’s never final. It’s not static. By continuously measuring it, you can also continuously improve it.
Conclusion
eNPS is a widely used way to measure employee engagement, employee satisfaction, and employee loyalty. It’s growing increasingly popular and is used all over the world. As such, it’s a good metric to use for benchmarking. On its own, it will not give you all the information you need, but it’s a good idea to make it part of your regular pulse employee engagement surveys.
Are you interested in how your business can benefit from measuring eNPS and employee engagement with modern pulse surveys? Talk to one of our experts!
