Employee Net Promoter Score or eNPS is the key metric measured by Empuls and is meant to quantify the organization’s perception among its employees. eNPS is a globally accepted indicator of employee loyalty and motivation and is found to be an effective early warning system for predicting employee disengagement or churn. It is based on the NPS system developed by Bain and Co’s research team headed by Fred Reicheld to assess customer satisfaction and loyalty.
What questions are asked in the survey?
There are two questions asked to an employee in an eNPS assessment:
On a scale of 0 to 10, how likely are you to recommend this organization as a place to work to a friend or colleague? (Rating based question)
Please help us understand the reason behind your score. (Open-ended question)
How are the survey responses analyzed?
Employees are categorized as promoters, passives, or detractors based on their response to the eNPS question. Promoters are those who give a score of 9 or 10. They are the most engaged employees. They are the employees who are motivated, happy, and enthusiastic about recommending others to join in. You want more of these.
Passives or neutrals are those who give a score between 6 and 8. As the name suggests, such employees have neither a positive nor a negative sentiment towards the organization. You would want more of these to turn into promoters.
Detractors are those who give a score of 5 or below. Such employees are less engaged, and the organization needs to invest in understanding the reason behind their disengagement. You would want very few or zero of these.
How is eNPS calculated?
The eNPS is calculated as the difference between the ratio of promoters and detractors at the organization and can vary from -100 (all employees being detractors) to +100 (all employees being promoters). A score around +30 is generally considered good, and one around +50 is considered excellent. Some companies, such as Hubspot, have an eNPS of around +80. This is one of the highest across industries at the global level.
Formula for calculating eNPS: eNPS= % of promoters - % of distractors.
For example, in an organization of 200 employees, if 100 are promoters, 60 are passives, and 40 are detractors, then the eNPS would be calculated as follows: % of promoters = 50, % of detractors = 20, hence eNPS= 50 - 20 = 30.
How is the eNPS related to employee engagement?
The eNPS is a single score given based on the answer to one question. However, the underlying factors that influence an employee to give that particular score are varied. These underlying factors are called Engagement Drivers. In the last few decades, many leading research organizations have conducted extensive research on the eNPS and the influencing engagement drivers. The research has led them to classify the multiple engagement drivers into broad categories: Company Strategy, Workplace Culture, Growth Opportunities, Compensations, rewards, etc. The Employee Pulse Survey on Empuls dives deeper into each engagement driver and provides insights into understanding the engagement and motivation levels of the employees at the organization.
The Employee Pulse Survey is a scientifically designed survey that contains a set of questions encompassing all the key engagement drivers. In order to ensure that the data gathered is indeed reflective of the employee opinion of the organization, we have based the questionnaire on rigorous statistical principles and validations. The survey is designed to eliminate the various biases that respondents carry and require a minimum, significant number of responses to be gathered based on the organization’s size so that the data collected is indicative of the organization and is actionable.