Did someone just say eNPS?
Well well well. Employee Net Promoter Scores. This term gets thrown around a lot. On the surface it looks like a trendy way to track employee engagement and loyalty over time. Meandering through office corridors, corporate board rooms are bathed in a mysterious eNPS glow. Careers, promotions and bonuses all resting on incremental increases of a single number. But what are they? And how much should we trust them? It’s always important to have a healthy dose of scepticism when it comes to data, so let’s dive in and see what they’re all about.
Employee Net Promoter Score (eNPS) is a metric used by businesses to gauge employee satisfaction and loyalty. Taking inspiration from the consumer-focused Net Promoter Score (NPS), which measures customer loyalty, eNPS assesses employees' willingness to recommend their workplace to friends and family. This concept stems from the idea that employees who are genuinely happy and engaged in their work are more likely to speak positively about their employer, contributing to a company's reputation and, indirectly, its success.
The eNPS is usually calculated based on responses to a single question, along the lines of: "On a scale of 0-10, how likely are you to recommend our company as a place to work?" Employees who respond with a score of 9 or 10 are considered 'Promoters', those who score 7 or 8 are 'Passives', and anyone scoring 6 or below is categorised as a 'Detractor'. The eNPS is then calculated by subtracting the percentage of Detractors from the percentage of Promoters.
Why should businesses consider eNPS?
Simple and quick to measure: eNPS offers a straightforward method for assessing employee sentiment. Its simplicity encourages higher response rates, providing a more accurate picture of the workforce's overall mood.
Predictor of employee retention and productivity: A high eNPS often correlates with higher employee retention and productivity. Engaged employees tend to stay longer and contribute more effectively to their role and the business.
Enhances employer branding: Positive eNPS scores can boost a business’ reputation as a desirable place to work. This can be crucial in attracting top talent in competitive job markets.
Identifies areas for improvement: Regularly tracking eNPS helps identify areas needing attention, allowing management to address issues before they escalate.
Employee engagement and satisfaction: It reflects employees' overall engagement and satisfaction, which are key drivers of business success.
But what’s not so great about it?
While eNPS can be considered a valuable tool – conveying sentiment within a simple to understand measure – it's not without limitations. Firstly, it provides a broad measure but lacks the depth and nuance to understand specific issues or areas for improvement. Secondly, the categorisation of Promoters, Passives, and Detractors is highly likely to oversimplify complex employee sentiments, that will vary by team, role, level and tenure. Like any survey-based metric, eNPS is subject to response biases and may not fully capture the sentiments of less vocal employees.
So what’s the verdict?
Incorporating eNPS into a talent strategy offers a quick and straightforward way to monitor employee engagement. However, it should be used in conjunction with other measures for a more comprehensive understanding of employee experience. By doing so, businesses can foster a positive work environment, boost employee morale, and ultimately, create a more effective business.
So there you have it. As with all things to do with measurement, it can be an effective data point – but only when used in the right context.
