An HR Glossary for HR Terms
Glossary of Human Resources Management and Employee Benefit Terms
Employee Net Promoter Score (eNPS)
What Is eNPS (Employee Net Promoter Score)?
Employer Net Promoter Score, or eNPS, is a scoring system designed to help employers measure employee satisfaction and loyalty within their organization. It is based on the Net Promoter Score system from Bain & Company, Satmetrix Systems, Inc., and Fred Reichheld, which 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 they are to 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:
- Passives (also called "neutrals")
The ratings are tallied, and the percentage of detractors is subtracted from the percentage of promoters. The final number represents the organization’s Employer Net Promoter Score, or how employees feel about working for their company. eNPS scores can range from +100 (mostly promoters) to -100 (mostly detractors).
An effective eNPS survey takes steps to ensure employee anonymity so employees provide honest feedback.
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Promoters (Score: 9 or 10)
Promoters are highly engaged, satisfied employees who are very likely to recommend your organization as a place to work. These individuals contribute positively to the organization's image and growth. Additionally, these individuals are motivated and inspired by the company’s culture, which empowers them to deliver high-quality, top-tier work.
Organizations with a high number of promoters likely have a successful, positive culture that attracts high-quality talent. In hiring scenarios, it’s recommended to pull from current employees’ networks to bring in additional promoters.
Passives (Score: 7 or 8)
Passives, also called neutrals, are employees who are satisfied enough to be content but may not be entirely engaged. These individuals are likely open to offers from outside companies and may not recommend the organization to their network. However, it’s important to note that not all passives speak negatively about the company.
eNPS scores that fall into this range may provide insight into where neutrals can be transformed into promoters. For example, neutrals who are unsatisfied with healthcare benefits or lack of skills development may become promoters if these benefits/perks are improved.
Detractors (Score: 6 or Below)
Detractors are unlikely to recommend their organization, which may indicate employee dissatisfaction—even if that score is a 6. Because detractors are dissatisfied at work, they’re more likely to leave the organization, so leaders need to take immediate action to stop this.
It’s crucial to carefully gather and evaluate detractor feedback to minimize employee turnover and costs. For the best results, employers can assume that all employees feel the same and take rapid action to remedy the problem.
What Are the Benefits of eNPS?
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 a company against competitors. 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 well-prepared organization will survey employees with eNPS regularly—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. As eNPS improves, scores can be included in recruiting materials to attract a higher caliber of talent to their workforce.
What Is a Net Promoter Score (NPS)?
A Net Promoter Score (NPS) measures how loyal customers are to a company and is a common metric used in customer experience programs. Scores are usually measured with a two-question survey and reported with a number ranging from +100 to -100. The higher the score, the more loyal customers are to your brand and the more likely they are to recommend your products or services to friends and family.
NPS scores are calculated similarly to eNPS scores, with customers segmented into promoters, neutrals, and detractors. Higher scores (9-10) mean customers are highly satisfied with your company, while lower scores (6 or below) represent highly dissatisfied customers who will likely dissuade others from buying your products/services.
NPS vs. eNPS: How Do They Compare?
Both NPS and eNPS are used to measure satisfaction, loyalty, and engagement. While they seem very similar upfront, there are key differences between them, which are broken down below:
- Both metrics measure satisfaction rates
- NPS and eNPS use a two-question survey to gather feedback
- Both are easy to understand and simple to measure
- The metrics help surveyors understand where improvements are needed
- NPS surveys are typically sent to customers, while eNPS is used to measure employee satisfaction rates
- NPS asks customers whether or not they’d recommend a product to friends and family; eNPS determines whether employees would recommend the company to friends and family as a good place to work
- NPS is typically connected with a specific customer and their data history within the company; eNPS surveys are usually 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.
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