In today’s dynamic workplace environment, understanding the pulse of your employees is crucial. But how do you quantitatively measure something like employee satisfaction or loyalty which can change day to day or week to week? Enter eNPS, a vital metric that has transformed the way businesses gauge workplace satisfaction and predict company health.
3 quick takeaways:
- eNPS stands for Employee Net Promoter Score, a critical index that measures employee loyalty
- Higher eNPS scores signifies a loyal, engaged workforce, which correlates with higher productivity and profitability
- Implementing eNPS feedback effectively leads to enhanced employee satisfaction, engagement, and retention
Demystifying eNPS
The Employee Net Promoter Score (eNPS) adapts the Net Promoter Score (NPS) concept from customer loyalty to employee loyalty. It hinges on one fundamental question: “On a scale from 0-10, how likely is it that you would recommend [Your Company] as a place to work?”
Based on their responses, employees are categorized into one of three groups as follows:
- Promoters (score 9-10): Loyal enthusiasts who will keep contributing and refer others, fueling growth. These employees are likely out promoting working for your company, the culture, benefits, and environment.
- Passives or Neutrals (score 7-8): Satisfied but overall unenthusiastic employees who are vulnerable to competitive offerings. These employees may be happy at work and aren’t negative about working there, but may not see themselves working there long term.
- Detractors (score 0-6): Unhappy employees who can potentially harm your brand through negative word-of-mouth. These employees are likely leaving negative reviews, looking at other jobs, and not contributing as effectively to the business.
Benefits: Why eNPS is a Game-Changer for Your Business
Here are some of the key reasons why you should run eNPS surveys:
Unearth Authentic Employee Sentiments
- Traditional annual reviews often miss the mark in understanding employee concerns and are focused on work functions more than on the full picture of the employee experience.
- eNPS, being anonymous, encourages honest feedback from team members, thus revealing genuine employee sentiment. In the cases which it doesn’t, you may need to have some focus groups first to better understand employee sentiment and reset expectations.
Predict Business Health
- Companies with high eNPS scores often outperform their competitors (cited by the Harvard Business Review). The best way to start is to send your first survey to get a baseline, and research your industry-specific eNPS range.
- A study showed that organizations with engaged employees see 21% higher profitability (via Gallup).
Simplicity and Accessibility
- It’s both accessible and affordable to run eNPS surveys. It doesn’t require complicated surveys, or huge question banks to sort through. With just one question, you can reveal the health and status of your employees’ satisfaction.
- It’s quick, straightforward, and easy for employees to respond to, which encourages higher participation rates with it’s ease and simplicity.
Acting on eNPS: More Than Just Numbers
Understanding your eNPS score is just part of the equation. The real magic lies in what you do with that information. Here’s how to make the most of your eNPS and the work that goes into it:
- Timely Feedback: Conduct eNPS surveys regularly to keep a real-time pulse on employee sentiment. This will help you get ahead of trends and act faster.
- Actionable Insights: Go beyond the score by asking follow-up questions to understand the ‘why’ behind the rating. You may notice specific topical themes that come up where employees have issues or concerns. Some survey tools will let you easily have employees rate specific areas of the business as well to quickly diagnose things.
- Employee Engagement: You can show employees that their feedback matters. Communicate the changes you’re implementing as a result of their input and keep the communication and action lifecycle going. Open communication, regular visibility, and you’ll earn a lot of respect with your team.
Get tips, industry benchmarks, strategies to boost scores, and more!
The Positive Impact of eNPS on Business Metrics
It’s no secret in the corporate world that happy employees mean a thriving business. So to that end, here’s how a positive eNPS directly influences various aspects of your success:
Increased Productivity
Engaged employees are more likely to exceed performance expectations, lean in on new projects, and bring new ideas to the table. Companies with engaged employees outperform those without by 202% according to a Business 2 Community article.
Enhanced Customer Satisfaction
Truly happy employees create happier customers through better service, enthusiasm, and understanding of your customer needs. 80% of companies who prioritize employee experience report an increase in customer satisfaction according to Forbes.
Reduced Employee Turnover
High eNPS scores correlate with lower staff turnover as well. Replacing an employee can cost up to twice their annual salary according to Society for Human Resource Management. And while not every new hire may cost so much, the cost to recruit, hire, onboard, and factoring in the downtime without being fully staffed — all adds up.
Better Recruitment
Higher eNPS scores can make recruitment easier as new talent is often attracted to companies known for employee satisfaction and those actively investing in their employees and company culture. You’ll also likely end up with better reviews and ratings on websites like Glassdoor where employees can review businesses they have worked for.
Your Next Move
Ready to leverage the power of eNPS? Here’s something you can do right now:
Lock in your eNPS survey tool.
- You don’t need expensive fancy tools – start with a simple, anonymous survey (Peoplelytics has this setup by default for you).
- Ask the key eNPS question and an optional follow-up for additional feedback.
- Assure respondents of anonymity and the value of their honest opinions.
- Communicate with your employees in advance to set expectations, afterwards to thank them, and as you go forward to communicate a timeline and plan of action and follow up.
This immediate step will establish a baseline for understanding your company’s current standing and open channels for improvement.
Peoplelytics offers a free plan for small organizations, and has affordable pricing for everyone else.
