Net Promoter Score February 8, 2017 5 min read by Alex

eNPS - Track and Grow your Employee Satisfaction

eNPS - Track and Grow your Employee Satisfaction

Loyal and engaged employees is the key to a company’s ability to not only sell a product or service, but also to create brand ambassadors that will promote it as a great place to work.

If you want to grow your business, you need happy employees. Employees that will constantly go above and beyond, provide exceptional experience for customers, make great decisions, and come up with innovative ideas for your business’ development.

Besides, there’s plenty of hard evidence that shows that happy employees lead directly to better performance and higher profits. So it actually pays off to invest in your employee satisfaction.

Employee Net Promoter System® or eNPS is becoming increasingly popular among different companies, but what is it and how should you use it to boost employee satisfaction?

eNPS Methodology

Employee Net Promoter Score® (eNPS), is a derivative of the popular Net Promoter System. Originally a customer satisfaction metric that is measuring the likelihood of recommending a company, it was later used internally on employees instead of customers to evaluate their engagement.

Apple, Rackspace and JetBlue were one of the first companies that have adopted eNPS. They recognized the importance of employees being promoters themselves, since only employee that truly believes that the service he/she is selling is the best in the market, can turn a customer into a promoter.

The key benefit of this type of survey is that it requires just two or three questions, keeping the burden on the employee low. Although many adopters of eNPS (and Apple being one of them), have settled with only one main question,

“On a scale from 0-10, how likely are you to recommend this company as a place to work?”

There were many other companies, which found that asking a second question will yield even better results.

“What is the primary reason for your score?”

This second question “why” is where the real power of eNPS gets unleashed. Employees can provide accurate, unbiased feedback in their own words, without being confined by predefined survey answers.

Employee Net Promoter Score is then calculated by segmenting respondents into three categories based on their opinion of your company:

  • 9-10 – Promoters: These are happy and loyal employees who love your company and are likely to refer it to their friends.
  • 7-8 – Passives: They are those who have little enthusiasm about your company and are not likely to recommend it to others.
  • 0-6 – Detractors: They are unhappy with the company and are likely to damage your brand reputation with negative word-to-mouth.

From here, working out your eNPS is just a matter of subtracting the percentage of detractors from percentage of promoters.

eNPS = (% of Promoters) – (% of Detractors)

After this, you’re left with a positive or negative score of between -100 and 100.

It’s important to mention that in general, employee Net Promoter Scores are substantially lower than customer scores. Employees are strict critics and often hold their company to even higher standards than do customers. So don’t be surprised if your eNPS is lower than your NPS.

Loyal employees are more productive

Whether you’re managing a startup or a big enterprise with thousands of employees, it’s hard to ignore the evidence that happy employees will go above and beyond in order to improve the organization.

A study by economists at the University of Warwick found that happiness led to a 12% spike in productivity, while unhappy workers were 10% less productive.

If an employee feels attached to your brand then they will do whatever the team leader requests and even more – they will work to common goals and come up with creative and innovative ideas.

Happier employees also make better leaders. Loyal and engaged employees make better decisions, excel at managing their time, and possess great self-motivation skills.

High job satisfaction leads to lower costs

As we said, loyal employees are more productive, and productive employees lead to increased profitability.

Kenexa Research Institute revealed that organizations with highly engaged employees achieve twice the annual net income of organizations whose employees lag behind on engagement.

Another interesting fact is that for engaged employees money is not necessarily the motivation factor. Of course, you have to pay them the appropriate salary, but the happiest and most engaged employees feel they work for something more than just money.

It’s the intrinsic motivators they care about, things like personal sense of accomplishment for doing the job to the best of their abilities or sense of meaningfulness for accomplishing something of real value – something that matters in the big picture.

Well-executed eNPS programs should be considered an investment and not an expense. The insights you’ll get from them will prove to be priceless with time.

Happy employees stay with you longer

Higher employee loyalty reduces employee turnover. Many companies spend a great amount of time and money investigating the causes of turnover rate due to significant business costs to replacing them.

On average, it costs about 20% of an employee’s annual salary to replace them. For example, the cost to substitute someone earning $50,000 annually – which covers three-quarters of all workers in the United States – would be $10,000.

There are many factors that affect this:

  • The cost of hiring, such as advertising, interviewing, and hiring.
  • Cost of on-boarding a new employee, including training and management time.
  • Lost productivity. It might take a new employee 7-8 months to reach the same productivity
  • Cost of time with unfilled role
  • Cost of customer service and errors

To avoid these incredible costs you need make sure you know how your employees feel about your company and continuously measure your eNPS to prevent them from leaving.

Employee loyalty is tied to customer loyalty

Imagine you’re working as a customer service agent with a ton of other people. You’re working in a small office with dim light, your manager never says thank you even though you’re always working extra hours,you are tired and no one bothers to ask you how you feel.

This is the face that will be representing the company and talking to the clients. And this is one unhappy face.

While you can’t please everyone, you want the employees representing your company to feel their best and for that you have to put yourself in their shoes. Because only employees that are promoters themselves can turn a customer to a promoter.

According to Monetate, 73% of consumers would consider purchasing from a brand again if they had a superior customer experience, while John Goodman, author of ‘Strategic Customer Service’, found that customers who are delighted by superior service are 10-30% more loyal than customers who have not been delighted.

Treat your employees like you want to be treated and value your employees as highly as your customers and not only because it will lead to more productivity or profitability but because this is the right thing to do.

Advntages of tracking eNPS
Advntages of tracking eNPS

Track eNPS to increase employee satisfaction

If you haven’t considered implementing eNPS in your company then perhaps you should. When implemented as a part of an ongoing operating system it can help team leaders with identifying and prioritizing issues, as well as working on continuous improvement.

These surveys can be conducted at the different stages of employment, such as

  • right after training
  • performance review
  • work anniversary
  • one-on-ones

eNPS surveys provide quick feedback on what employees like and don’t like about your organization. These results are easy to interpret and they serve as a useful predictor of growth.

When shared with supervisors and team leaders, the feedback gathered from eNPS surveys contributes to more experimentation of strategies toward the team, products or services.

It also gives the ability to track employee satisfaction by office or department. This feature is especially valuable for large corporations, that have several offices scattered around the globe. By filtering this data they can get a better understanding what is working and what’s not for this specific department or office.

Overall, eNPS is a short and efficient survey that can help you bridge communication or organizational barriers, letting you capture honest, unbiased feedback.

Conduct anonymous surveys with Retently eNPS

Engaged and loyal employees lead to higher customer satisfaction, lower costs, more ideas and faster growth. eNPS is the tool that will help you measure employee satisfaction and take appropriate measures to improve it.

eNPS surveys must be kept confidential to encourage honest feedback. Retently makes it easy to keep your employee anonymity intact while being able to get the valuable feedback you need to recruit and retain your talent.

You can always ask an employee to expand on their answers. So if someone gives you a brilliant idea you can find out more details, or if it’s a horrible feedback you can ask them why they feel this way and take appropriate action.


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