The Ultimate Guide to the Employee Net Promoter Score

The Ultimate Guide to the Employee Net Promoter Score

A high attrition rate is fast becoming the biggest challenge companies face these days. As a result, it is increasingly becoming tough for employers to retain talent. Here, the use of an employee net promoter score (eNPS) metric comes into the picture. 

For the uninitiated, eNPS is a popular metric that helps employers measure how engaged or loyal the employees are towards a company. In simple words, it helps in measuring customer loyalty. 

It is pertinent to note that eNPS is based on a simple premise. It asks employees on a scale of 1-10 the likelihood of recommending a company to family or friends. The respondents are categorized into three categories based on answers received on the eNPS scale. 

Category 1- If the score is 9 or 10, the employees are brand ambassadors or promoters. 

Category 2- If the score is 7 or 8, the employees are passives. They will neither promote nor encourage people to join the company.

Category 3- If the score is between 0-6, the employees are detractors. 

Why Is Employee Retention Becoming Challenging?

There was a time when employees stayed in the same company for years together. Today, things have changed, and salary is no longer the top factor behind employees leaving one company and shifting to another. Other factors that weigh on this decision are collaboration, flexibility, shared values, growth, etc. It is where companies face the problem of retaining talent.

The employee net promoter score helps in tracking and measuring employee loyalty. It is fast becoming an indispensable part of every business toolkit.

Let us start by understanding the NPS Score’s meaning.

What Is Employee Net Promoter Score?

As discussed above, every company has three categories of employees: promoters, passives, and detractors. 

Protectors

Employees who are protectors are the most loyal to their employer. They are happy in their role and are highly engaged in their work. They enjoy personal and organizational growth and help in leading the business to higher profitability. In addition, they are the best brand ambassadors of the company. 

Detractors

Contrary to them, there are detractors. These are basically dissatisfied or unhappy employees. They are never satisfied with the role played by them in their company. Therefore, they will never utter a good word about the company, which is a great risk as they may spread negative word of mouth.

Passives

Then there are passives who are neither detractors nor promoters and are completely neutral. On the contrary, they are usually happy and satisfied in their role but are quite receptive to exciting offers from other companies. 

Benefits of eNPS

The eNPS questions are framed so that employers get a good sense of which category an employee would fall in. Here are a few benefits of employee NPS.

  1. Ease in Use– It is very easy and convenient to distribute eNPS Survey Questions. Employees find it easy to answer them. It helps in getting a quick overview of employee engagement and loyalty. It allows employers to monitor their employees and learn how they feel about the company. It compares and measures employee experience over a specific period of time.
  2. Set Benchmarks–  eNPS is a quantitative value that helps set up benchmarks for companies to measure performance. 
  3. Reduced Employee Turnover- Using this tool helps companies reduce employee turnover significantly. In addition, if the score is low, the company helps employees improve their experience and the way they feel about their work. Thus this tool is the first step towards getting insights into an employee’s train of thought.

What Is a Good eNPS Score?

Technically, these scores may range anywhere from 100 to 100, and anything more than zero is acceptable. However, it sometimes means an even split between detractors and promoters. As soon as the business seems to be tipping towards detractors, employers should start feeling uncomfortable. Thus, achieving anywhere near a 100 is a good eNPS score.

When it comes to a good eNPS score, follow eNPS benchmarks by industry and strive hard to achieve those figures. Following employee NPS benchmarks helps a company keep track of progress over time and identify areas that need improvement. 

How to Calculate Net Promoter Score?

If you are wondering how to calculate Net Promoter Score, follow a straightforward formula that will help you derive quick results. First, subtract the promoter’s percentage from the detractor’s percentage.

So, if you ask a question like is it likely to recommend us to your family and friends on a scale of 0 to 10, you get 10 percent detractors and 80 percent promoters, the employee net score calculation comes out to be 70. It is important to note here that passives are usually not added to the calculation, but this doesn’t reduce their significance in any way. They are sitting on the fence and can be converted into promoters by taking timely and suitable steps. 

The use of employee net promoter score tool is fast becoming popular and is being used to attract and retain the best talent in the industry.

Springworks Team

Building products and tools to simplify the life of an org's HR function in terms of recruiting, onboarding & retention!

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