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eNPS: A 2024 Guide to Employee Engagement
Mar. 07, 2024
An organization is made up of people whether they are your customers or the employees. That's why you can't just focus on the satisfaction of one while ignoring the other.
Even the satisfaction of these two categories of people can be said to be interlinked.
The survey by Gallup is a straight proof of it. The survey found that a company that has more satisfied and engaged employees tends to earn more, around 21% more in profits and 17% in productivity.
So, productivity leads to a company capable of running better and serving customers better, hence the profitability increases. That's how employee satisfaction affects customer satisfaction.
Moreover, that's why eNPS came into existence. So, let's understand the role of it in an organization and how to measure and use it effectively.
Understanding eNPS: The Magical Number
It is a metric that helps find out the satisfaction of employees in a company. As its name suggests, it is derived from net promoter score which is a tool to find customer satisfaction.
An eNPS survey (employee Net Promoter Score Survey), assesses the satisfaction level of the employees by asking them a question about how likely they are to recommend the company to their known ones.
Based on the responses of the employees, a score is found for the company. It also finds out how many employees are satisfied with the work culture of the company and how many aren't. So it's like finding the promoter and detractor employees in a company. However, the anonymity of the respondents (employees) is maintained for a fair employee NPS.
Advantages of Employee NPS
● Firstly, it is an easy-to-deploy tool which is why it doesn't take a lot of time to answer the survey. It also increases the participation rate by 100%.
● The survey data is easy to process. So, you can get the insights almost immediately. Hence, it informs about any potential problem further before it takes a bigger picture.
● The easier deployment and post-processing of this metric constitutes regular monitoring of the company’s employee satisfaction.
Disadvantages
● It ultimately is just a number and thus falls in the category of quantitative data. So, it's important to combine it with some qualitative research to get a clear picture.
● Along with the promoters and detractors, there can be passive employees as well. Unfortunately, if there are more passives compared to the other two types of employees, the score may not be able to tell you the right employee satisfaction and engagement story.
● While the score tells about employee engagement, it doesn't take all the factors into account. Many factors like employee retention rate are kept untouched in the process.
How to Find Employee Net Promoter Score?
Measuring it is not a big deal. It is just a few steps to deploy the survey, get responses, and do post-survey processing. Here is how you can measure it in your company.
1. Take a Survey
It starts with taking a survey with a common question asked to all the employees. There's no survey designing or something else as it requires just a straightforward question to ask. For example, “On a scale of 0-10, how likely will you recommend the company to your others?”. Here, 0 is highly unlikely and 10 is highly likely.
2. Sort the Responses
Now, sort the responses that you have received into three groups. These three groups are promoters, passives and detractors.
● Promoters - Those who rate your company a 9 or 10 are promoters.
● Passives - Those who give you a score of 7 or 8 are the neutral employees. They don't promote the company but are also not the detractors.
● Detractors - From 0-6, this range is where detractors lie. They are the unsatisfied employees in your organization.
3. Find the Outcome
Lastly, based on the responses, find the result or score. Here is how you can find it:
eNPS = [(Promoters - Detractors) ÷ total employees] × 100
So, if there are 120 employees in your company and you find out that 50 are the promoters, 20 are the detractors and others are passive. So, your score will be:
eNPS = [(50 - 30)/120] × 100 = 16.6
Moreover, the best department to handle this survey is the HR department. Thus, the results should be shared with the HR department. It will let the HR team know about the overall employee engagement and also let them compare the different departments. However, to make it of use additional qualitative market research is recommended.
Effective Utilization of ENPS in 2024
Here are some tips to make the most out of this survey:
● Always Keep an Eye Over the Score
You should make sure that you haven't just done the survey once and left the practice. It is important to continuously do this survey and find if there is any progress from before or not.
● Look at This Score from Different POVs
As a company, you can categorize your employees based on multiple factors. For example what department they are from or what level of employee they are. These different categories should be looked at individually and their employee net promoter score should also be compared with each other. It will give you a bird's eye view of your company's employee satisfaction and engagement.
● Work Towards Enhanced Employee Engagement
You have the numbers, so you must take action as well. With these numbers, you cannot only find the pain points your employees are facing but can also invest in the areas that are the reason why your employees want to promote you.
For example, if there is an issue with the work close deadlines your employees have to go through. It's a problem that needs a solution. So you must work on finding the Solution. But on the other hand, there is something that employees like about your company, for example the facilities. So, you must also acknowledge that appreciation and work to make it even better.
Key Takeaways:
● Employee NPS is the score that tells about the company employee engagement.
● It has several advantages: easy use, higher employee participation, and support for faster action strategies.
● It also has some disadvantages like it's not very well detailed and the formula ignores the passives of the organization.
● Measuring Employee net promoter score is easy. Just run the survey, categorize the results into promoters, passives, and detractors, and put the numbers in eNPS = [(Promoters - Detractors) ÷ total employees] × 100.
● To use this score in the best way possible you should frequent it while having and comparing the scores from various POVs.
