eNPS: Employee Loyalty Index

What is eNPS

eNPS (Employee Net Promoter Score) is a metric used to measure employee loyalty and satisfaction within a company. It is an adaptation of the original Net Promoter Score (NPS) concept, which was initially developed to assess customer loyalty.

eNPS is measured by asking a single key question: "How likely is it that you would recommend our company as a place to work to your friends or acquaintances?" Responses are typically given on a scale from 0 (not likely at all) to 10 (very likely).

The answers are then classified based on the score:

• Promoters (scores 9-10): Employees who are very satisfied and would actively recommend the company as a workplace.
• Passives (scores 7-8): Satisfied employees who may be less likely to recommend the company.
• Detractors (scores 0-6): Discontented employees who may negatively impact the company’s reputation among potential candidates.

eNPS provides companies with a quick and simple way to gauge overall employee satisfaction and loyalty, which can help identify areas for improving company culture, working conditions, and employee retention strategies.

What is eNPS used for

eNPS is used in organizations for various purposes related to human resources and corporate culture. Here are the key uses of eNPS:

1. Measuring employee satisfaction. eNPS provides a quick and easy way to measure overall employee satisfaction and their relationship with the employer. This helps to understand how happy employees are with their work and working environment.
2. Assessing employee loyalty. Since eNPS asks employees about the likelihood of recommending the company as a workplace, it allows companies to gauge their employees' loyalty and commitment.
3. Identifying areas for improvement. Analyzing eNPS results can help identify key problems and areas requiring attention. For example, if a large number of employees are detractors, the company needs to examine the reasons for their dissatisfaction and work on resolving them.
4. Improving corporate culture. Understanding and improving employee satisfaction and loyalty helps create a more positive and productive work culture.
5. Enhancing employee retention. Improving working conditions and employee satisfaction based on feedback gathered through eNPS can help reduce turnover and increase the retention of valuable employees.
6. Attracting talent. A high eNPS can be a powerful tool in the talent war, as potential employees often look for workplaces with high levels of satisfaction and loyalty among existing employees.
7. Monitoring changes and trends. Regular eNPS surveys allow companies to track changes in employee satisfaction and loyalty over time, providing the ability to assess the effectiveness of implemented changes and adapt to new trends.

How is eNPS calculated

eNPS is calculated using a simple formula based on employees' responses to one key question: "How likely is it that you would recommend our company as a place to work to your friends or acquaintances?" Responses are collected on a scale from 0 to 10, where 0 means "not likely at all" and 10 means "very likely." The eNPS calculation formula is as follows:

eNPS = (Percentage of Promoters − Percentage of Detractors)

Where:

• Promoters — employees who gave a rating of 9-10. They are considered loyal and are likely to actively recommend the company.
• Passives — employees who gave a rating of 7-8. They are satisfied but their loyalty is not high enough to actively recommend the company.
• Detractors — employees who gave a rating of 0-6. They are dissatisfied and may spread negative feedback about the company.

The percentage of Promoters and Detractors is calculated based on the total number of respondents. Passives do not affect the final eNPS score.

Example:

Suppose the company has 100 employees who answered the survey. The results are as follows:

• 60 Promoters (scores 9-10)
• 20 Passives (scores 7-8)
• 20 Detractors (scores 0-6)

Percentage of Promoters:

(60/100) × 100 = 60%

Percentage of Detractors:

(20/100) × 100 = 20%

eNPS calculation:

60% − 20% = 40

Thus, the eNPS of the company is 40.

The eNPS value can range from -100 (when all employees are Detractors) to +100 (when all employees are Promoters). The higher the eNPS, the higher the level of loyalty and satisfaction among employees.

General methodology for eNPS surveys

The general methodology for eNPS surveys includes the following key steps:

1. Ask a single key question about the likelihood of recommending the company as a workplace, with responses on an 11-point scale from 0 to 10.
2. Classify responses into Promoters (scores 9-10), Passives (scores 7-8), and Detractors (scores 0-6).
3. eNPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
4. Surveys are conducted anonymously to ensure honesty and sincerity of responses.
5. eNPS surveys are conducted regularly to track changes over time.
6. Additional questions or comment fields may be included to collect more detailed feedback.
7. Data is analyzed to identify trends and issues, and actions are taken based on the collected feedback.
8. Survey results and improvement plans are communicated to employees.

What is a normal eNPS score

The eNPS score can vary significantly depending on the industry, company culture, geographic location, and other factors. In general, eNPS is measured on a scale from -100 to +100, where any positive score can be considered relatively good, and scores above +30 are considered very good.

Here are general guidelines for interpreting eNPS scores:

• Below 0: Indicates problems with employee satisfaction and loyalty. This result requires further analysis to identify and resolve causes of dissatisfaction.
• From 0 to +30: Considered an acceptable result, but there is significant room for improvement. Companies should aim to increase this score.
• From +30 to +50: A good result, indicating that most employees have a positive view of the company.
• Above +50: An excellent result, indicating a high degree of loyalty and satisfaction among employees. Companies with such scores usually have a strong corporate culture and high employee engagement.

It is important to remember that these ranges are general guidelines, and the ideal eNPS score may differ for various organizations. It is important not only to fixate on the absolute value of eNPS but also to track its changes over time and analyze additional feedback from employees for a deeper understanding of their satisfaction and loyalty.

How to improve the eNPS metric

Improving eNPS requires a comprehensive approach that includes actions to enhance employee satisfaction and strengthen their loyalty to the company. Here are some strategies that can help improve eNPS:

1. Carefully analyze the feedback collected in the eNPS survey to identify specific problems and areas that need improvement. Pay special attention to comments, especially from Detractors and Passives.
2. Improve internal communication by ensuring transparency in company decisions and changes. Regularly inform employees about plans, achievements, and policy changes.
3. Create opportunities for professional development and career growth. Offer training, seminars, and skill-enhancement programs.
4. Develop a recognition and reward system that acknowledges employees' achievements and contributions. Recognition can be both material (bonuses, gifts) and non-material (praise, awards).
5. Create a comfortable and motivating work environment. This can include improving office spaces, providing necessary tools and resources, and fostering a positive culture and atmosphere within the team.
6. Maintain a balance between work and personal life by offering flexible working hours, remote work options, and adequate vacation time.
7. Encourage active employee involvement in decision-making and project development. Create mechanisms for collecting ideas and suggestions from employees.
8. Ensure that leaders and managers have the necessary leadership skills and effective communication with their subordinates. Conduct regular training for managers.
9. Actively work on eliminating identified problem areas and weaknesses in corporate culture, processes, and policies.
10. Regularly track changes in eNPS and the effectiveness of implemented changes. Be ready to adjust strategies and approaches based on the results.

Improving eNPS is an ongoing process that requires constant attention to employee well-being and their relationship with the company.