Updated: Jan 29
To bring about change, we cannot focus only on the Employee Net Promoter Score. It's actually the entire system that creates value.
When we talk to HR professionals about Employee Net Promoter Score (eNPS), many have heard of it or are already using it. But few know the origin of eNPS and the real value it brings to organizations when used correctly.
eNPS is a spin-off of the customer NPS founded by Bain & Company in 2003. This metric used to measure customer loyalty gained popularity because of its simplicity. Customers are asked the ultimate question - "On a scale from 0-10, how likely are you to recommend our products and services to your friends, relatives, and family members?" Based on the results, customers are bucketed into 3 categories:
Promoters (9’s and 10’s): Customers who really do buy more, stay longer, refer customers, etc…
Detractors (0’s to 6’s): They do just the opposite of Promoters…
Passives (7’s and 8’s): They are perfectly satisfied but don’t go out of their way to promote your products and services…
Companies with higher net promoter scores grow faster than their competitors!
Validity & Accuracy?
NPS is not statistically better. If you want something statistically robust, you would go for more questions. The ultimate goal of NPS is to motivate and inspire businesses to focus on creating more promoters and fewer detractors through this radically simple tool that appeals to all levels (from frontline to CEO) of the organization.
Net Promoter System
To get exceptional value out of NPS, companies need these 3 components:
Using the Feedback
NPS as a Strategy
Therefore, it is really a system that creates value. The score alone doesn't accomplish anything! This applies to the eNPS!
What about eNPS?
You can't sustain high customer loyalty without a team of loyal and engaged employees!
"Take care of your employees, and they'll take care of your business. It's as simple as that. Healthy, engaged employees are your top competitive advantage." Richard Branson
Thank you, Mr. Branson. It's easier said than done but it can be done!
Implementing the Employee Net Promoter System
Step 1: Be Employee Centric
Companies pay attention to customer feedback because they drive one of the largest line items on the P&L: Revenue. Employees also drive one of the largest line items on the P&L: Expense. They also have the ability to influence revenue (e.g. customer retention). So why the heck would you not pay attention to employee feedback with the same tenacity as you do with customer feedback?
Step 2: Set a Goal
If you know what your current eNPS is today, set a goal of where you want to be 6 months or a year from now. We all know what gets measured gets done.
Step 3: Measure Consistently
We have seen this many times. Employee feedback is adhoc. This means it gets done only when businesses have the time, budget, and tools. Create a process and stick to it. Stop waiting for the "right time" to do it. There are so many tools out there today, it takes little time and effort to execute a pulse survey. Even just asking the ultimate eNPS question - "On a scale from 0-10, how likely are you to recommend our company to your friends, relatives, and family members?" would be beneficial. Don't over-analyze the process and keep it simple!
Step 4: Use the Data
HR's most important asset today is data. If you don't have it today, start collecting it. Using data, you can recognize and prioritize issues across the organization so you know where you can invest resources to make the greatest impact. Learn to make better business and people decisions through the use of data.
eNPS is an emerging science. You would use this question in your employee surveys and not a stand-alone like the customer NPS.
In order to get good eNPS data, and as with any employee survey, employees need to feel safe providing feedback.
The frequency of asking the eNPS question depends on business needs. Beware of survey fatigue!
Link feedback data to employee demographics to help you recognize and prioritize issues across the organization.
Let eNPS inspire and motivate your business to focus on creating more promoters and fewer detractors!
How Can We Help?
Retainify offers a unified solution that allows employers to track their employees' sentiment throughout their employment life cycle in real-time. From onboarding to exit, our customers can customize and automate their employee surveys and measure what truly matters to them. Find out more at https://www.retainify.com
Contact us at firstname.lastname@example.org