Glossary of Human Resources Management and Employee Benefit Terms
Employer Net Promoter Score, or eNPS, is a scoring system designed to help employers measure employee satisfaction and loyalty within their organizations. It is based on the Net Promoter Score system from Bain & Company, Satmetrix Systems, Inc., and Fred Reichheld, that gauges customer loyalty.
Like NPS, the Employee Net Promoter Score (eNPS) system consists of a two-question survey.
The first question asks employees to rate, on a scale from zero to ten, how likely it is they would recommend the organization as a place to work. The second is an open-ended question asking why they chose the rating they did.
The system generates a score using the responses to the first question, first by sorting ratings into three categories: promoters, with ratings of nine or ten, passives or neutrals, with ratings of seven or eight, and detractors, with ratings of six or below. Promoters are those employees who are highly satisfied and likely to recommend your organization as a place to work. Passives are employees who are satisfied enough to be content but may not be entirely engaged. Detractors are those who are unlikely to recommend their organization, which may indicate some level of employee dissatisfaction.
The percentage of detractors is then subtracted from the percentage of promoters, and the final number represents the organization’s Employer Net Promoter Score. eNPS scores can range from +100 (all responses are promoters) to -100 (all responses are detractors).
An effective eNPS survey will take steps to ensure employee anonymity so employees provide honest feedback.
While many employee satisfaction metrics can feel intangible, eNPS is simple, easy to acquire, and easy to understand. It’s an excellent way to compare one company against its competition. Organizations can also use the results to understand how their employees feel and what may be detracting from the employee experience.
Tracking keywords (such as salary, work/life balance, or leadership) that promoters and detractors use can help identify areas for improvement, whether in a specific department or in the organization as a whole.
A smart organization will survey employees with eNPS on a regular basis—whether monthly, quarterly, annually, or otherwise—to stay up to date and track trends over time. Comparing progress over the years will help companies improve over time. And as their eNPS goes up, they can include that score in recruiting materials, attracting a higher caliber of talent to their workforce.
Both NPS and eNPS are a type of metric that measures a certain group’s satisfaction rate. Both metrics are gathered using a 2-question survey. They’re easy to understand and simple to measure, and they help the people conducting the survey know where they need to improve.
However, NPS surveys are typically sent out to customers, while eNPS surveys are used to measure the sentiment of employees within the company. An NPS survey asks customers whether or not they would recommend a product to their friends or family, while eNPS surveys ask whether or not the employee would recommend the company to friends and family.
NPS surveys are usually connected with a specific customer and their data history within the company, while eNPS surveys are typically anonymous.
Though NPS and eNPS measure satisfaction rates from different groups, the scores are often correlated. A company with a high NPS probably also has a high eNPS, while a company with a low NPS might also have a low eNPS.
A good start to improving the right kind of retention is to make sure you’re paying fairly and competitively to the market. In fact, research shows a link between fair and transparent pay practices, lower intent to leave, and overall greater job satisfaction.Watch Now
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