eNPS - Employee Net Promoter Score, what is it
What is eNPS, and why is it such a great metric for HR to track? eNPS, or Employee Net Promotor Score, is increasingly being used as a KPI. And for good reason! Let’s take a deep dive into how it works, and why it’s so useful. There is a globally known way of measuring employee satisfaction and engagement. It is called eNPS, which stands for employee net promoter score, originating from NPS, Net Promoter Score. It was introduced by Fred Reichheld, Bain & Company and Satmetrix, 2003. eNPS is used by all Fortune 500 companies and is included in many modern employee surveys. Thus, eNPS has become a global standard. eNPS consists of one question, emphasizing the willingness to recommend the employer to others. The purpose of eNPS is to get a quick overview of the employees’ satisfaction. The question is comprehensive and captures everything that is relevant to work satisfaction. The disadvantage of the question is that it does not provide sufficient information on the specific strengths and challenges of the organization, teams, and individuals. Therefore, eNPS is usually supplemented with additional questions to give a deeper understanding and concrete actions to work with. Using a globally established key indicator such as eNPS creates benefits, which are not achieved by using local and supplier-specific indexes. eNPS simplifies the comparison with other organizations since many employee survey tools include the eNPS. A standardized key indicator also makes it easier to replace the supplier of measuring tools, without losing the benchmark value from previous employee surveys. The question is formulated as follows: ” How likely is it that you would recommend your employer to a friend or acquaintance?” The answer options range from 0 to 10, where 10 means “Extremely likely” and 0 means “Not at all likely”. The responses are then divided into Promoters (9, 10), Passives (7,8) and Detractors (0-6). eNPS is calculated using the following formula: eNPS = percentage of Promoters minus percentage of Detractors. The result can range from -100 to +100. What is a good eNPS? Eletive’s guidelines on how to interpret your eNPS (= Promoters (%) – Detractors (%)): 0 – 20 is Good, 20 – 50 is Very good and above 50 is Excellent.