A Gallup survey found that when it comes to enforcing change in the workplace, 41% of respondents want to improve engagement or culture at work, 28% are focused on pay and benefits, and 16% prioritize wellbeing. This comes as global employee engagement has reached a record high of 23% globally.
Employees are still keen on improving the engagement and culture in the organization. That’s where monitoring employee engagement and satisfaction levels becomes instrumental. The eNPS score serves as a metric to gauge these levels, allowing organizations to take relevant steps before the situations worsen and lead to employee turnover.
Employee stress levels are also at an all-time high, which is concerning. As much as employees might love their jobs and the culture, excessive stress and employee burnout can diminish their likelihood of recommending the organization as a great place to work. To help you keep these areas in check, here’s a guide to calculating eNPS and using it to make your organization a place employees want to vouch for.
What is an Employee Net Promoter Score?
The Employee Net Promoter Score (eNPS) is a crucial metric for organizations to monitor the satisfaction and engagement level of employees. It goes beyond mere employee satisfaction surveys by focusing on whether employees would actively advocate for their company, recommending it to their acquaintances, friends, family, or even strangers inquiring online. The score reflects on employees' underlying sentiments and loyalty towards their organization.
One of the most critical advantages of eNPS lies in its ability to serve as an early warning system. Early identification of a low eNPS score can help you address underlying issues proactively before they escalate. Such quick measures towards these issues retain employees and mitigate potential risks to the company’s reputation and productivity.
How To Calculate eNPS?
To calculate eNPS, you need employees to openly and honestly answer one crucial question—“On a scale of 0-10, how likely are you to recommend this company to your friends, family, or people you know?”
Based on the responses, you divide employees into three categories:
- Promoters(9-10): enthusiastic about your brand, employees readily recommend your company.
- Passives(7-8): content with the company but may not actively endorse it.
- Detractors(0-6): unhappy with the company and may spread negative word-of-mouth.
While promoters would go above and beyond to get top talent in the organization, it’s the detractors we need to keep in check. Once you categorize employees, calculate the eNPS score using the following formula:
eNPS: (percentage of promoters) - (percentage of detractors)
The eNPS score can be anywhere between +100 to -100.
Let’s say you are surveying 300 employees. Prepare the survey around a key question: the likelihood of recommending the organization. Include an open-ended question to gather qualitative feedback on the reasons behind employees’ likelihood or reluctance.
Out of 300 respondents:
- Promoters: 150 or 50%
- Passives: 100 or 33.33%
- Detractors: 50 or 16.67%
eNPS = 50% (percentage of promoters) - 16.67% (percentage of detractors) = 33.33
In this example, the eNPS score is +33.33, indicating a positive sentiment among employees.
How to Interpret eNPS Results?
Once you’ve calculated your eNPS score, it’s time to interpret the results and create an actionable strategy to tackle dissatisfied employees. Here’s how:
1. Calculate the score
Calculate the eNPS score by subtracting the percentage of detractors (those rated 0-6) from the percentage of promoters (those rated 9-10) in the survey responses. For example, if 30% of respondents are promoters and 15% are detractors, the eNPS score would be 30-15 = 15.
Instead of calculating eNPS for the entire organization, you can calculate it for specific departments or teams within the company. For instance, your tech department has an eNPS of +50, indicating high employee satisfaction and loyalty.
At the same time, the marketing department has an eNPS of -20, demanding immediate improvements. This approach will lead to targeted interventions and a better understanding of the employee sentiments in different departments.
2. Understanding the range
As mentioned earlier, eNPS scores can range from -100 to +100, with positive scores indicating a higher proportion of promoters relative to detractors and negative scores suggesting the opposite. A score above 0 is generally considered positive, while a score below 0 indicates more dissatisfied employees.
An eNPS score ranging from 10-30 is considered satisfactory. Scores exceeding +50 are typically regarded as excellent, indicating that employees are thriving under the current work setup and practices. Conversely, if the score falls to -50 or below, it is a cause for concern and suggests significant organizational issues.
eNPS score range:
Below Zero: alarming; more dissatisfied employees
0: neutral
10 to 30: satisfactory
Above 50: excellent; employees thriving
3. Analyze responses
eNPS scores are often interpreted alongside qualitative feedback provided by respondents to understand the strengths and underlying issues. Analyzing this feedback involves identifying common themes or patterns in the responses, such as references to leadership, work environment, communication, or career development.
4. Creating benchmarks
Analyzing responses is crucial for understanding the current situation. To establish benchmarks, compare your organization’s eNPS score to industry averages or competitors’ scores.
Perceptyx benchmark research, based on data from over 15 million employees in global organizations, shows that the global eNPS benchmark increased from 13.8 in 2021 to 14.9 in 2022. The current average eNPS score across all companies measuring eNPS is 14. Here’s an industry-wise breakdown to assist you in benchmark setting.
Industry: eNPS score
Professional Services: 28
Healthcare: 23
Manufacturing: 17
Retail trade: -1
Finance and insurance: 22
Omni Tip on eNPS score:
Conduct your own research and benchmark against organizations of similar size and type to get meaningful comparisons and deeper insights into typical eNPS ranges within your industry!
5. Taking action
Once you have analyzed the data and established benchmarks, develop actionable strategies to address identified issues. Prioritize these issues based on their severity and impact, focusing on high-priority areas with the greatest potential to positively impact employee satisfaction in the short term.
For example, if employees are highly dissatisfied with current leadership tactics, prioritize conducting leadership development programs or coaching sessions to improve managerial skills.
Similarly, if collaboration appears to be a problem, create opportunities for employees to interact outside of their immediate work teams. The goal is to take action to improve the situation before it escalates.
Why Should HR Leaders Advocate for eNPS?
A Gartner survey found that over 75% of employees now value manager support even more, even as managers tackle 51% more responsibilities than they can handle. This shows the need for HR leaders and managers to proactively demonstrate care for employees’ expectations, growth, and well-being. Here are additional reasons why advocating for eNPS is essential:
Obtain data-driven insights
eNPS offers HR leaders with data-driven insights into employee engagement, satisfaction, and sentiment. For instance, if many employees rate the company poorly on work-life balance, HR can investigate further to uncover underlying issues, such as heavy workloads or inflexible scheduling. It’s crucial to note that survey results are just the beginning of a deeper exploration into the root causes of employee dissatisfaction.
Improve employee engagement
Analyzing eNPS surveys can reveal varying levels of engagement among different departments or teams. For instance, HR leaders may find that the marketing team has lower eNPS scores compared to the sales team. This insight allows HR to develop personalized engagement strategies tailored to each department’s unique needs. For example, they might organize team-building activities for the marketing team to enhance collaboration and morale.
Additionally, if employees feel undervalued or unappreciated, HR can implement rewards and recognition programs. To illustrate, a peer-to-peer recognition program where employees nominate their colleagues for recognition. This approach helps HR identify ways to provide employees with what they need to feel more engaged and satisfied in the organization.
Want to take your employee engagement initiatives to the next level?
Download our HR Calendar 2024 for inspiration!
Reduce employee turnover
A report found that nearly six in ten employees are psychologically disengaged from work, showing up but feeling clueless and disconnected. These employees are essentially “quiet quitting”, often leaving organizations due to a perceived lack of growth opportunities.
High attrition rates result in additional costs for recruitment, onboarding, and lost productivity. eNPS surveys can assist HR leaders in identifying reasons for turnover, such as dissatisfaction with leadership, limited growth prospects, or poor work-life balance. Proactively addressing these issues can help retain top talent and reduce turnover rates, saving valuable time and resources for other organizational aspects.
Strengthen company culture
eNPS surveys highlight the strengths and weaknesses of the company culture. Positive feedback about the collaborative environment indicates a strength, while concerns about diversity and inclusion point to a weakness.
These surveys also help HR leaders gauge if the company lives up to its company values. For example, if the organization promotes integrity and innovation, eNPS feedback reveals if employees perceive these values in daily operations. If there’s a disconnect between words and actions, HR can bridge the gap and reinforce the desired cultural norms.
Relevant reads: Strategies and Tools for Defining Culture in the Workplace
Continuous improvement
eNPS surveys are conducted periodically to track trends in employee engagement and satisfaction. For example, if the initial survey shows a low score in career development opportunities, you can introduce training programs to address this.
Subsequent surveys help track the impact of these programs, highlighting whether satisfaction in this area has been improved. This allows HR to identify areas of progress and those needing further attention.
How can eNPS Increase Employee Engagement?
eNPS scores highlight factors that hinder employee engagement. Understanding these dissatisfactions and disengagements enables you to take necessary actions to improve the situation.
Identify areas of improvement
eNPS surveys allow employees to share feedback anonymously. By gathering feedback alongside the score, organizations can identify patterns and areas of improvement. For example, if the survey consistently identifies unrealistic deadlines and overwork, changes are necessary. Implementing mental health days at work and launching initiatives like fitness classes and meditation sessions can help address these issues.
Encourage ownership and participation
eNPs surveys demonstrate that the organization values employees’ opinions and experiences, fostering a sense of participation and ownership. Employees recognize that their input can drive improvements, empowering them to actively find solutions to identified problems.
To illustrate, in a company with many remote employees, workers may feel overwhelmed by constant check-ins and meetings. They may prefer an asynchronous work environment. Through eNPS surveys, they can raise such issues and actively participate in bringing about the desired change.
Invest in employee-wellbeing
eNPS scores indicate where organizations should invest to address employee well-being challenges like high stress, burnout, or work-life balance issues. Initiates like wellness programs, flexible work hours, and mental health resources demonstrate a commitment to meeting employees’ needs. In Singapore, various mental-well being programs are available to improve workplace mental health.
Focus on building a positive work culture
eNPS survey responses, especially the qualitative feedback, can reveal employees’ sentiments towards the company culture. Positive feedback indicates a supportive culture where employees feel valued. Negative feedback may indicate toxicity, such as gender discrimination in the workplace or a lack of psychological safety.
The ratio of promoters to detractors in eNPS scores also provide clarity on company culture. A high number of promoters indicates an excellent culture, while a predominance of detractors suggests a need to define and improve the company culture.
Read next: 5 Inspiring Company Culture Examples for Building a Great Workplace
Transform Employee Experiences with Omni
eNPS scores offer valuable insights for HR leaders to gauge employee engagement, satisfaction, and overall sentiment towards the organization. The insights gathered from surveys can help identify areas of strength and weakness in the company’s culture and work environment. However, to truly harness the power of eNPS data, HR tools like Omni are the perfect tool.
Omni offers real-time graphs and easily exportable reports, streamlining employee analytics and reducing calculation times and errors. This equips you with the necessary data to understand the trends within your organization. These tools empower HR teams to monitor trends over time, compare results across various departments, and proactively identify areas for improvement.
By leveraging Omni’s powerful automation alongside eNPS surveys, organizations can create a more engaged and productive work environment, leading to improved employee retention and overall business success.
