Known as the Net Promoter Score, the NPS is seen as one of the most successful phases in research history. There may be hundreds of questions asked in consumer research, but the NPS score sums up the consumer’s feelings about the brand in the most refined way. Although different sentence structures are used, the NPS score is based on the answer to the following question: Would you recommend us to your acquaintances?
Your customer may like the service or product, be satisfied or have some emotional changes. But whether to recommend your brand or not is a very simple but effective summary of that interaction.
The impact and popularity of NPS soon led to the emergence of the eNPS score, which analyses whether employees recommend their company.
Does eNPS represent employee engagement?
Briefly and clearly: No. eNPS measures only a fraction of employee engagement. The score is very meaningful, but it can’t give you your true employee engagement rate. Consider this example: An employee may recommend the company he works for to his friends even if he is not sufficiently motivated or engaged. Conditions are comfortable, pay is good, work is easy, or there is no strict supervision. It is possible that he can only recommend it for these, but this does not mean that he is wholeheartedly engaged to his work. Or the employee’s level of engagement is very high, but he does not see anyone among his friends whom he can recommend the company to. This is also possible. eNPS shows what employees think about your company, service and workplace culture.
The biggest advantage of eNPS is that it gives you a simple, measurable statistic. Periodic eNPS surveys make it very easy to analyse employee trends.
How is the eNPS rate calculated?
eNPS provides a short-cut information about the satisfaction rates of your employees and saves you time. Therefore, it is meaningful to measure it in average 3-month periods. More importantly, it is supported by a second step to determine the extent to which employees recommend their company.
Instead of asking whether he will recommend, seeing how much he will recommend, saves the manager from the black and white distinction.
Or, in one simple step, the answers can be pulled with this question: “On a scale of zero to ten, how likely are you to recommend your company as a place to work?”
With this question, you are faced with 3 groups.
Supporters, passives, and detractors (or critics)
9 – 10 Points / Supporters: Motivated, happy and generally highly engaged employees
7- 8 Points / Passives: Generally happy but disengaged employees
0-6 Points / Detractors: Those who do not recommend the company because they are unhappy, unaffiliated and critical, and they even disparage it.
The percentage of each group is extremely important to you, but when calculating the score, you set aside the passives and subtract the percentage of supporters from the percentage of detractors. The result is your eNPS score.
In other words, if 70 percent of your employees support you and 10 percent disparage you, your eNPS score is 60.
Reading eNPS data correctly
In addition to loyalty, satisfaction and engagement assessments, measuring the level of eNPS and taking action towards improvement are useful for other metrics that make up your company’s success graph like efficiency, profitability, retention of talent, innovation, etc.
But also, another very important benefit is the morale and motivation that it provides to employees. Even the very fact of trying to find out company promoter rate is an indicator of valuing employee opinions. However, employee thoughts are not just the data that managers senselessly accumulate, categorize and turn into tables.
As with any feedback process, if a company doesn’t act on feedback, it can create frustration among employees, which in turn affects all relevant scores.
eNPS is the start
The eNPS score is a unique metric for your studies and analyses on employee engagement. But when used on its own, the insight it reveals is shallow and sparse. With eNPS, you can learn to what extent your employees recommend the company, but you cannot get down to the reasons.
You should consider the eNPS as a starting point, not a conclusion. There is always a lot to be done to increase employee engagement, improve performance and, accordingly, productivity. Your eNPS score gives you an idea of how urgent these things are. It also allows you to easily track changes when you implement your plans.
The continuity of eNPS measurements gives you a significant advantage regarding real-time analysis. The critical factor for eNPS, which varies according to employee profile, industry, geographical region, cultural characteristics and many other environmental factors, is regular and decent measurement. Track employees’ perceptions about your company by using our eNPS measurements detailed with accurate and open-ended questions, and do not encounter any surprise results.