What is eNPS (employer Net Promoter Score)?

Have you ever wondered how to measure employee engagement and satisfaction in a way that goes beyond just the surface level?

Enter eNPS, a powerful method to analyze employee feedback that allows you to tap into the hearts and minds of your employees and get a deeper understanding of their level of engagement and loyalty.

So what is eNPS?

Employee Net Promoter Score (eNPS) is a method for measuring employee satisfaction and loyalty. It's based on the concept of Net Promoter Score (NPS), which is commonly used to measure customer loyalty.

One of the reasons why eNPS (employee Net Promoter Score) is so effective is that it allows you to identify not only the areas where your employees are satisfied but also the areas where they are dissatisfied. By understanding what drives employee engagement and loyalty, you can take concrete steps to improve your organization's culture and working environment.

And companies can increase productivity, reduce turnover, and build a more positive workplace culture by addressing issues and improving employee engagement.

But that’s not all of it, we highly recommend you keep reading so you might find everything you need to know about eNPS (employee Net Promoter Score) in this article.

Table of contents:-

• What are the benefits of eNPS?
• What is the difference between NPS and eNPS?
• What are the limitations of eNPS, and how to overcome them?
• How do you calculate eNPS?
• What does enps score mean?
• eNPS benchmarks
• What is a good enps score?
• How to structure your eNPS cycles‍?
• How to improve enps?
• How often should you measure eNPS?
• How can eNPS be used to increase engagement?
• Things to keep in mind about employee net promoter score
• How do you use eNPS ft. CultureMonkey enhance your employee experience through eNPS

What are the benefits of eNPS?

Employee Net Promoter Score (eNPS) is a valuable metric that measures employee loyalty and advocacy towards an organization. Here are some of the benefits of eNPS:

Early warning system

eNPS provides an early warning system for HR leaders to identify potential issues and take corrective action. A declining eNPS indicates that employees are becoming less satisfied and may be at risk of leaving the company.

Cost-effective

eNPS (employee Net Promoter Score) is a cost-effective way to measure employee engagement and satisfaction compared to traditional employee surveys or pulse surveys. The eNPS survey is short and can be completed quickly by employees, saving time and resources.

Improves retention

eNPS helps HR leaders understand what motivates their employees and how to improve employee engagement. Organizations can improve employee retention rates and reduce turnover costs by addressing employee concerns.

Predicts business performance

eNPS has been shown to be a predictor of business performance. Companies with high employee net promoter scores tend to have better financial performance, higher customer satisfaction rates, and lower employee turnover rates.

Enhances customer experience

eNPS (employee Net Promoter Score) is not only an indicator of employee loyalty but also a driver of customer loyalty. Employees who are engaged and motivated are more likely to deliver exceptional customer service, which can lead to increased customer satisfaction and loyalty.

Improves employee morale

eNPS surveys provide a platform for employees to voice their opinions and feel heard. When employees feel valued and heard, it can boost morale and improve overall job satisfaction.

Benchmarking

eNPS can be used to benchmark against other companies in the same industry or geography. This allows organizations to identify improvement areas and track progress over time.

Easy to understand

eNPS (employee Net Promoter Score) is a straightforward metric that everyone in the organization can easily understand. This makes it an effective tool for communicating employee satisfaction to executives and other stakeholders.

Drives continuous improvement

eNPS surveys are conducted regularly, allowing organizations to track employee engagement changes over time. This data can be used to identify improvement areas and drive continuous improvement efforts.

Promotes employee engagement

By providing employees with a platform to voice their opinions and concerns, eNPS surveys promote employee engagement and participation. This can lead to a more collaborative and inclusive work environment where employees also feel valued and heard.

What is the difference between NPS and eNPS?

Net Promoter Score (NPS) and Employee Net Promoter Score (eNPS) are two metrics used to measure customer and employee loyalty, respectively. While they share some similarities, the two have some key differences.

Here are some of the main differences between NPS and eNPS:

• Target audience: NPS is used to measure customer loyalty, while eNPS is used to measure employee loyalty. The target audience for NPS is customers, while the target audience for eNPS is employees.
• Survey questions: The survey questions used for NPS and eNPS are different. NPS asks customers how likely they are to recommend a company to a friend or colleague, while eNPS asks employees how likely they are to recommend their employer as a place to work.
• Scoring system: NPS and eNPS use a scoring system ranging from -100 to +100. However, the calculation of the scores is different. NPS subtracts the percentage of detractors from the percentage of promoters, while eNPS subtracts the percentage of detractors from the percentage of promoters but also includes passive respondents.
• Frequency of surveys: NPS surveys are typically conducted on a regular basis, such as quarterly or annually. eNPS surveys can also be conducted regularly, but they may be more frequent, such as monthly or bi-annually.
• Purpose: The purpose of NPS is to measure customer loyalty and identify improvement areas. eNPS aims to measure employee loyalty, identify areas for improvement, and improve employee engagement.

What are the limitations of eNPS, and how to overcome them?

While eNPS (employee Net Promoter Score) is a valuable tool, it is not without its limitations. Here are some of the limitations of eNPS and how to overcome them.

Limited scope

One of the limitations of eNPS (employee Net Promoter Score) is its limited scope. eNPS only measures employee loyalty and engagement but does not provide insight into other aspects of employee experience, such as work environment, career growth opportunities, and job satisfaction.

Solution: To overcome this limitation, companies should consider using regular employee engagement surveys, including employee lifecycle surveys, pulse surveys, and more, that focus on these other aspects of employee experience. By combining multiple surveys, companies can gain a more comprehensive understanding of employee experience and identify areas for improvement.

Limited actionability

While eNPS (employee Net Promoter Score) can provide valuable insights into employee loyalty and engagement, it does not provide actionable recommendations for improvement.

Solution: To overcome this limitation, companies should ensure that eNPS surveys are designed to collect open-ended feedback from employees. This feedback can then be analyzed and used to identify specific areas for improvement.

Limited accuracy

The accuracy of employee net promoter scores can be affected by factors such as response bias, sample size, and timing of the survey. For example, if only a small percentage of employees respond to the survey, the results may not be representative of the entire employee population.

Solution: Companies should ensure that eNPS surveys are designed to minimize response bias and increase response rates. This can be achieved by ensuring that the survey is easy to understand and complete and incentivizing employees to participate.

Additionally, companies should ensure that eNPS (employee Net Promoter Score) surveys are conducted at regular intervals to ensure that the results are representative of the entire employee population.

Lack of contextual information

eNPS (employee Net Promoter Score) only provides a numerical score without any contextual information. This means that companies may be unable to identify the factors driving employee engagement or disengagement.

Solution: Companies should consider using eNPS surveys in conjunction with other surveys that provide more contextual information. For example, companies could conduct pulse surveys to gather additional feedback from employees on specific topics, such as work-life balance or leadership effectiveness.

Cultural differences

eNPS surveys may not be effective in all cultures or regions. Different cultures may have different expectations and perceptions of loyalty and engagement, which can impact the effectiveness of the survey.

Solution: To overcome this limitation, companies should consider adapting their eNPS surveys to be culturally sensitive and relevant. This can be achieved by working with local HR teams or consultants to ensure that the employee Net Promoter Score questions are appropriate and applicable to the specific cultural context.

How do you calculate eNPS?

Calculating eNPS (employee Net Promoter Score) is a straightforward process that involves a simple survey. To calculate eNPS, companies typically ask employees to rate on a scale of 0-10 how likely they are to recommend their company as a place to work to friends or colleagues.

Based on the responses, employees are classified into three categories:

• Promoters (score 9-10): These are employees who are highly engaged and loyal to the company.
• Passives (score 7-8): These are employees who are neutral about the company.
• Detractors (score 0-6): These are employees who are unhappy or dissatisfied with the company.

To calculate the eNPS score, companies subtract the percentage of detractors from the percentage of promoters. The resulting score can range from -100 to 100, with higher scores indicating higher employee loyalty and engagement levels.

For example, if 40% of employees are promoters, 30% are passives, and 30% are detractors, the eNPS score would be 10 (40% - 30%). It's important to note that eNPS is a directional metric. Companies should use it as a starting point to identify areas for improvement and take action based on employee feedback.

What does eNPS score mean?

The eNPS (employee Net Promoter Score) is derived from a survey question that asks employees how likely they are to recommend their company as a place to work to friends or colleagues. The score is calculated based on the responses of three categories of employees: Promoters, Passives, and Detractors.

Promoters

Promoters are employees who score 9 or 10 on the eNPS survey question. These are highly engaged employees and loyal to the company, and are likely to recommend the company to others. They are a valuable asset to the company and can help to drive positive word-of-mouth marketing and referrals.

Passives

Passives are employees who score 7 or 8 on the eNPS survey question. These employees are neutral about the company and may be satisfied with their job but are not highly engaged or loyal. They are not likely to actively promote the company, but they are also not likely to speak negatively about it.

Detractors

Detractors are employees who score 0-6 on the eNPS survey question. These employees are unhappy or dissatisfied with the company, and may be actively disengaged or looking for other job opportunities. They can have a negative impact on the company's reputation and employee morale.

The resulting score can range from -100 to 100, providing companies with a quick and easy way to measure employee engagement and identify areas for improvement.

eNPS benchmarks

Now that you have measured the eNPS scores, how do you know if the score you’ve got is good or bad?

eNPS (employee Net Promoter Score) benchmarks solves just that as they are useful for companies to measure and compare their employee engagement levels against industry standards. Here are some key pointers to keep in mind:

1. eNPS scores vary by industry: Different industries may have different benchmarks for eNPS scores. For example, tech companies may have higher eNPS scores due to the nature of their work and company culture, while healthcare companies may have lower scores due to factors such as long working hours and high-stress levels.
2. Regional differences: eNPS scores can also vary by region or country. For example, companies in the US may have higher eNPS scores than those in Europe or Asia due to cultural differences in the workplace.
3. Use industry-specific benchmarks: It's important to use industry-specific benchmarks when comparing eNPS scores. This can help companies understand how they are performing relative to their peers and identify areas for improvement.
4. Benchmark against competitors: Companies can also benchmark their eNPS scores against their competitors to better understand their market position and identify opportunities to differentiate themselves in terms of employee engagement.
5. Company size matters: The size of a company can also impact eNPS benchmarks. Small companies may have higher eNPS scores due to closer relationships between employees and management, while larger companies may have more diverse employee populations and lower scores.
6. Look at trends over time: eNPS scores can vary over time, so it's important to track trends and changes in scores by continuously listening to your employees leveraging  employee survey templates. This can help companies identify areas where they have improved or declined and take action accordingly.
7. Consider external factors: It's important to consider external factors that may impact eNPS scores, such as changes in the economy, company leadership, or industry trends. These factors may impact the benchmark for eNPS scores and should be taken into account when interpreting results.

What is a good eNPS score?

Generally, the eNPS score ranges from -100 to +100. A score of 0 indicates that the number of detractors and promoters is equal. A score above zero suggests that you have more promoters than detractors, while a negative score implies that you have more detractors than promoters.

The following is a general guide to interpreting eNPS scores:

• A score between 50-100 is considered excellent, indicating that most employees are happy and satisfied with their jobs.
• A score between 30-50 is considered good, indicating that most employees are happy, but some issues may need to be addressed.
• A score between 0-30 is considered average, indicating that some employees are satisfied, but there may be significant room for improvement.
• A score of 0 is considered poor, indicating that many employees are dissatisfied with their jobs and significant issues must be addressed.

eNPS Calculation Examples:

Calculating eNPS (employee Net Promoter Score) involves asking employees questions similar to: "On a scale of 0-10, how likely are you to recommend our company as a place to work?" Based on the employees' responses, they are categorized into three groups:

• Promoters: Those who rate the company 9-10.
• Passives: Those who rate the company 7-8.
• Detractors: Those who rate the company 0-6.

The eNPS (employee Net Promoter Score) is then calculated by subtracting the percentage of detractors from the percentage of promoters. Here are some examples:

Example 1: Positive

• Promoters: 65%
• Passives: 20%
• Detractors: 15%

eNPS: 50 (65%-15%)

Example 2: Neutral

• Promoters: 40%
• Passives: 30%
• Detractors: 30%

eNPS: 10 (40%-30%)

Example 3: Negative

• Promoters: 20%
• Passives: 40%
• Detractors: 40%

eNPS: -20 (20%-40%)

How to structure your eNPS cycles?

Conducting eNPS surveys requires careful planning and structuring to generate useful insights. Here are some pointers to help you structure your eNPS cycles effectively:

Determine the frequency of your eNPS (employee Net Promoter Score) surveys

Decide on the frequency of conducting eNPS surveys based on the size of your organization, the nature of your work, and the overall engagement levels of your employees. Generally, conducting eNPS surveys bi-annually or annually is considered sufficient.

Choose the right timing

Timing is crucial while conducting eNPS surveys. Choose a time when your employees are not going through any significant changes or disruptions, such as organizational restructuring, layoffs, or management changes. Conducting employee engagement surveys during such times might affect the accuracy of the results.

Decide on the survey questions

Plan and design your eNPS survey questions carefully. The survey should be concise and straightforward, and the questions should be relevant to the employees. A standard eNPS question is: "On a scale of 0-10, how likely are you to recommend our organization as a place to work?" followed by follow-up questions asking for the reason behind the score.

Ensure anonymity

Employees must feel comfortable while sharing their feedback. Ensure that the surveys are anonymous and their responses are confidential. Anonymity in surveys helps employees to be assured that their feedback won't affect their employment status or career growth opportunities.

Communicate survey results and follow-up action

After the survey, communicate the results with the employees and let them know how the feedback will be used to improve the work culture. Ensure to take concrete steps based on the feedback received and communicate progress. This will help employees feel valued and heard, thereby increasing their engagement and loyalty towards the organization.

How to improve eNPS?

We know if you have come this far, you are indeed interested in measuring and improving your organizations' eNPS score. Although this is a tricky part, let’s see how you can manuever this and improve your eNPS scores -

Act on employee feedback

Encourage your employees to provide feedback, then take action on the feedback they provide. Address issues and concerns that your employees bring up and communicate your action plan to your team.

Improve employee engagement

Increase employee engagement by offering opportunities for career development, providing employee recognition for a job well done, and fostering a positive company culture.

Enhance communication

Enhance communication between employees and managers, and promote transparency in the workplace. Clear communication helps to build trust and strengthens relationships between team members.

Encourage teamwork

Create an environment that fosters teamwork, collaboration, and open communication. Encourage your employees to work together on projects and build a sense of camaraderie.

Increase employee recognition

Recognize and reward your employees for their hard work and achievements. It can be as simple as a thank-you email or as elaborate as an employee appreciation event.

Provide opportunities for learning and development

Offer training and development programs that help your employees to grow their skills and knowledge. Providing opportunities for professional growth can increase employee engagement and satisfaction.

Address work-life balance

Addressing work-life balance concerns and providing support to employees who are struggling to balance their work and personal life will encourage them to take breaks and provide flexible scheduling options when possible.

Focus on employee wellness

Prioritize employee wellness by providing wellness programs, promoting healthy habits, and providing mental health support. Employees who feel cared for and supported are more likely to be engaged and loyal to their company.

Implementing these strategies can create a positive work environment and improve your eNPS score. Remember, a high eNPS score is an indication of employee satisfaction and loyalty, which translates to better business and employee performance.

How often should you measure eNPS?

The frequency of eNPS measurement depends on the organization's needs and goals. However, measuring eNPS at least once a year is generally recommended to track the overall progress and identify trends in employee engagement.

Some companies may measure eNPS more frequently, such as every quarter or every six months, to stay on top of employee feedback and address any concerns or issues promptly. It's important to strike a balance between collecting enough data to make informed decisions and avoiding survey fatigue among employees.

Ultimately, the frequency of eNPS measurement should be determined by the company's resources, goals, and willingness to act on employee feedback.

How can eNPS be used to increase engagement?

Employee engagement is critical to any organization's success, and measuring it can be challenging. Just measuring eNPS is not enough, and companies need to take action to increase engagement based on the results. Here are some ways in which eNPS can be used to increase engagement:

Identify key drivers of employee engagement

eNPS surveys can provide insights into what factors are driving employee engagement within an organization. These drivers could be anything from work-life balance, management support, or growth opportunities. Once the key employee engagement drivers are identified, the organization can focus on improving those areas to increase engagement.

Use eNPS as a continuous feedback loop

eNPS is not just a one-time measurement. It should be treated as a continuous feedback loop, where the organization consistently seeks feedback from employees and acts on it. Regular eNPS surveys help identify any changes in employee engagement metrics, and organizations can take necessary actions to address any issues.

Celebrate successes

When employees give positive feedback through eNPS surveys, it is essential to celebrate those successes. Recognition and appreciation of employees' efforts can increase their motivation and engagement levels.

Address negative feedback

Negative feedback can be uncomfortable, but it is essential to address it to improve engagement. Organizations should communicate with employees about their plans to address negative feedback and keep them informed about the progress.

Involve employees in the improvement process

eNPS can be a valuable tool to involve employees in the improvement process. Organizations can collaborate with employees to identify improvement areas, develop solutions, and implement them. This process creates a sense of ownership and accountability, which can boost engagement levels.

eNPS can be an effective tool to measure and improve employee engagement. However, using the results to take action and create a culture of continuous feedback and improvement within the organization is crucial.

Things to keep in mind about employee net promoter score

Here are some key things to keep in mind about employee Net Promoter Score (eNPS):

• Confidentiality: Employee feedback is personal and confidential, and it is important to communicate this to employees. Ensure that the feedback is collected anonymously to build trust and encourage honesty.
• Timing: The timing of the eNPS survey is crucial to its success. The survey should be conducted at a time when employees are most engaged and motivated. Conducting the survey during a busy period may result in low participation and inaccurate feedback.
• Continuous improvement: eNPS is an ongoing process and should be used as a continuous feedback loop to improve workplace engagement and employee experience over time. Continuously monitor progress and make improvements as needed.
• eNPS is not a one-time event: eNPS surveys must be conducted regularly to track employee satisfaction and engagement over time. Establishing a regular cadence for employee surveys and communicating to employees when they can expect to receive them is important.
• eNPS is only one tool for measuring engagement: While eNPS can be valuable for assessing employee engagement, it's not the only tool available. It's important to consider other metrics, such as employee satisfaction surveys, turnover rates, and absenteeism, to get a complete picture of employee engagement.
• eNPS is most effective when coupled with action: Simply measuring eNPS scores won't do much to improve engagement unless action is taken based on the results. Employers should be prepared to analyze the results, identify areas for improvement, and take concrete steps to address any issues that are identified.
• eNPS varies: eNPS scores can vary based on the industry and the specific company culture. It's important to understand what a "good" eNPS score means for your organization and how it compares to others in your industry. Benchmarks can be helpful, but they should be viewed as guidelines rather than strict rules.
• Not the only source: ​​eNPS should not be the sole measure of employee engagement or satisfaction. It is just one tool among many that can help organizations understand their workforce. It's important to use eNPS in conjunction with other measures, such as employee satisfaction surveys, mental health surveys, manager effectiveness surveys, employee lifecycle surveys,

How do you use eNPS ft. CultureMonkey, to enhance your employee experience through eNPS

It is important to keep in mind that eNPS is not a one-time solution but an ongoing process that requires continuous monitoring and feedback. Companies should create a structured and consistent approach to eNPS surveys to ensure they capture the right data and insights effectively.

When using eNPS, it is important to consider the factors influencing employee responses, such as communication, leadership, and company culture. Companies should also strive to ensure that the eNPS survey is easy to understand and accessible to all employees.

By using a platform like CultureMonkey, companies can easily collect and analyze their eNPS data, gain valuable insights, and take action to improve their scores.

With features such as real-time employee feedback analytics, customizable surveys, and automated reporting, CultureMonkey can help companies to streamline their eNPS cycles and optimize their engagement strategies. By prioritizing employee feedback and taking steps to create a positive workplace culture, companies can improve their eNPS scores and drive greater business success and growth.