What is eNPS (Employee Net Promoter Score)?

Employees are the greatest assets of an organization. But they can really prove to be good assets when they are happy with the organization and their jobs. Employee Satisfaction is crucial for any organization for smooth running and growth of the organization.

Your employees may appear to be happy, but in reality, some may be happy whereas others may be unhappy and dissatisfied. In order to know whether your employees are satisfied or not, you can measure their satisfaction by taking Employee Feedback through the metric eNPS which is used to measure Employee Loyalty.

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Like there is NPS or Net Promoter Score to measure customer loyalty in terms of their likelihood to recommend the brand to their known ones, eNPS is Employee Net Promoter Score which is used by employers to measure the loyalty of the employees.

What is eNPS?

Employee Net Promoter Score or eNPS is defined as a number between -100 and 100 which indicates the likeliness of the employees to recommend the company to their friends and known ones as a good place to work .

The eNPS is a single number derived from the percentage of unhappy employees subtracted from that of happy employees. This is determined by their answer to the following question:

On a scale of 0 to 10, how likely would you recommend this company to your friends and known ones as a great place to work?

The employees will give the score from 0 to 10 depending upon what they think about the company and how they feel about their experience with the organization. As per their answers, they can be divided into 3 categories namely promoters, detractors and passives.

1. Promoters

Those employees who give the rating of 9 or 10 would be categorized as Promoters. They are the most satisfied employees and will willingly recommend the company to their friends and known ones as a good place to work.

2. Passives

Passives are those employees who give the rating 7 or 8. They may not say anything wrong about the company, but neither go out of their way to appreciate the company and recommend others to join the organization.

3. Detractors

Those employees who give the rating from 0 to 6 are detractors. They will not at all recommend the company as a good place to work. Rather, chances are that they negatively influence the others if somebody who is planning to join the company asks their feedback about the organization.

How to Calculate eNPS?

The Employee Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters.

eNPS = %Promoters - %Detractors

Percentage of passives is not counted in calculating eNPS score. eNPS number can vary from -100 to 100.

For instance, 1000 of your employees have taken the survey and provided ratings. Out of these, 300 are promoters, 200 are detractors and 500 are passives. You will find the percentage of promoters as well as detractors.

Percentage of Promoters will be 300/1000 x 100 = 30

Percentage of Detractors will be 200/1000 x 100 = 20

eNPS = 30 - 20 = 10

Benefits of eNPS

eNPS is a great way to take Employee Feedback to measure Employee Satisfaction in terms of loyalty. Its importance cannot be neglected. Let's learn some benefits of eNPS.

Benefits of eNPS

It helps to know Employee Loyalty
It helps in implementing required changes
It helps in reducing Employee Turnover

Let's review how these benefits prove the importance of taking eNPS surveys.

1. It helps to know Employee Loyalty

eNPS helps to know the overall loyalty among your employees without consuming much of their time. With eNPS, you get to have a report of number of employees who are loyal to our company and who are not.

With an eNPS survey, you get an idea about the Employee Satisfaction levels, their motivation levels and happiness and that too only with just one question.

2. It helps in implementing required changes

eNPS creates an awareness about how many employees are happy with the organization and how much they are satisfied. After getting the eNPS results, you can give a thought of making some changes in organizational policies and work environment, or if you already have made some changes, employees are happy with it or not.

You can see the trends of rise and fall of eNPS and on this basis, you can make organizational decisions.

3. It helps in reducing Employee Turnover

When you get to know the satisfaction levels of the employees and you genuinely work to enhance Employee Satisfaction and loyalty, you make good organizational changes like adopting a CRM for recruiting and your decisions are somewhat employee-friendly. This helps in increasing employees' happiness which thus results in reducing employee turnover.

A reduction in employee turnover helps to cut costs of finding, recruiting, hiring and training new employees frequently which ultimately benefits the organization.

How often should you conduct eNPS Surveys?

Different companies conduct eNPS surveys at different intervals of time. Some companies do it as frequently as monthly surveys, some do it quarterly, some do it twice a year or some may do it annually or even once in a couple of years.

When you are deciding on how often you should conduct eNPS surveys, you should keep in mind that the survey should neither be after such long intervals of time that they loose accuracy, nor the surveys should be on such frequent basis that it causes survey fatigue.

Survey fatigue is a situation when people are surveyed so many times and on such frequent basis that they feel bored of filling a survey and they tend to not respond a survey. This decreases the value of the surveys and reduces the response rate. Therefore, you must not over-survey your employees.

Conducting an eNPS survey on quarterly basis is a good idea as you will be able to track company's progress and employee satisfaction levels on regular basis. It will neither be so frequent that it creates survey fatigue, nor be after too long intervals.