Before you read this article on Employee Net Promoter Score, I want to confess something once again. It is just that I am passionate about Human Resource. This blog post is mainly regarding HR and may interest HR Professionals. But the rest of you are actually getting evaluated at your workplace using this mechanism. So, even if this post sounds theoretical, it may actually be helpful to you. Therefore, happy reading. :-)
What does every company want?
Sustained, profitable, organic growth
This growth comes from having loyal customers who also act as advocates for the organization. Willingness to recommend is highly correlated with customer loyalty as well as with new customer acquisition, and negatively correlated with the unit cost of marketing, making it a strong predictor of profitable organic growth. Hence, it becomes very important to measure Customer Loyalty.
Many companies use a very popular method for measuring this – ‘Net Promoter Score’ which has been developed by and Satmetrix during the 1990’s and is built on the ‘ultimate’ question to the customer :
“Would you recommend our company (or product) to a colleague or friend?”
Very few companies understand that to achieve or sustain high customer loyalty and getting a high NPS score, a cadre of loyal, engaged employees is essential. Engaged employees are enthusiastic about their work and their company. Their enthusiasm is contagious. It rubs off on other employees, and on customers.
Based on Net Promoter Score, Employee Net Promoter Score (eNPS) is a method for measuring how willing the employees are to recommend their workplace to friends and acquaintances which ultimately indicates their loyalty and engagement.
The biggest difference is that NPS is done with your customers and eNPS is done with your employees.
The question asked in eNPS is similar to NPS:
How likely is it that you would recommend your employer to a friend or acquaintance?
(With a scale from “Not at all likely’ = zero to “Extremely likely” = 10)
The answers are then divided into three categories:
0-6 = ‘Critics’ or ‘Detractors’
7-8 = ‘Passives’
9-10 = ‘Ambassadors’ or ‘Promoters’
Employee Net Promoter Score is then calculated:
eNPS = share ‘Promoters’(%) – share ‘Detractors’(%)
The results from the eNPS survey may be used to find out how many promoters you have. Employee promoters power strong business performance because they provide better experiences for customers, approach the job with energy (which enhances productivity) and come up with creative and innovative ideas for product, process and service improvements.
eNPS, however, has one drawback. It does not indicate what turns the employees into detractors. Using only the one question without any follow-up makes it difficult to find out why some people do not want to recommend their workplace and why others do. To really understand the underlying reasons and resolve them, more comprehensive surveys are required, or a few follow-up questions connected to the eNPS question as a complement.
Once the result is known, it is essential to use the data to make a plan for change. There’s nothing more frustrating for employees than if you conduct a survey of any kind and you don’t follow up.
Also, transparency is very important when it comes to improving your eNPS. You need to get employees involved in the process as much as possible. Not only will this help you improve your score, but also your employees will feel more responsible, increasing their engagement.
A very effective way of improving your eNPS score is to use your promoters. More often than not, you simply thank promoters for their feedback and ask them why they’re so likely to recommend. It might be a better idea to ask them what you could do to be even better. It’s very possible that they’ll be willing to help you since they care so much about your company.
Hope this article helped you. Thanks and see you again soon.