The Net Promoter Score (NPS), originally a customer service tool, was later adopted internally with employees instead of customers. The result, eNPS (employee Net Promoter Score), is a way for organizations to measure employee sentiment and loyalty. It measures the likelihood of whether an employee would be willing to recommend your organization as a place to work and the products/services they sell.
While it’s not meant to be a complete way of measuring employee engagement, because of its simplicity, eNPS is an amazing way for anyone to get started.
The score comes from the original NPS question, which is:
“On a scale of 0 to 10, how likely is it that you would recommend our organization to a friend or colleague?”
Respondents are divided into three groups:
- Promoters (scores 9-10): Customers who refer your brand to others and help fuel growth
- Passives (scores 7-8): Customers who are satisfied, but are vulnerable to your competitors
- Detractors (score 0-6): Unhappy customers who can impede your growth
To calculate your eNPS, Calculate the percentages of detractors and promoters (ignore the passives because they are considered neutral).
Then subtract the percentage of detractors from the percentage of promoters. The result is your company’s eNPS.
For example, in a company of 10,000 employees, perhaps 1,000 rated the company a 9 or 10, and 3,000 rated the company a 0 to 6 — so 10 percent are promoters and 30 percent are detractors. The result of this example would be a -20 percent eNPS score — a sign of concern!
Best Practices/Quick Tips
An eNPS can range from -100 to 100. Anything above zero is acceptable, though companies have varying standards. In general, a score of 10-30 is considered good, and a score of 50 is excellent.
Regardless of the number, you should look beyond the data to understand why employees are satisfied or dissatisfied and combine your eNPS with other evaluation metrics. It’s also good to survey employees regularly to measure any change in your eNPS. Directly following a major change in company strategy or leadership is a great time to check the pulse of the organization.
Data is vital to assessing employee engagement. Using the eNPS as the core of your engagement evaluation gives you a solid basis for understanding employee loyalty, and can help you strategically improve your retention rate.