eNPS — what is this, how to calculate, why company needs this

It is well known that we like to share impressions. Good experiences mean that we encourage others to take advantage of given brands, but as a result of a bad experience, we will discourage them. It is worth noting that bad opinions spread faster, and in the age of the Internet, they are spreading more widely.

It is a good trend for HR departments to be interested in the opinions of employees and candidates. Internal HR service customers are a great source of feedback: what works well, what needs to be improved, what is missing. By implementing NPS, HR gains the opportunity to take corrective actions in accordance with what its recipients appreciate.

What is eNPS?

Employee Net Promoter Score (eNPS) is a variant of using the NPS indicator (Net promoter score) to measure employee loyalty. To begin with, let’s look at the base on which the NPS itself was created.

NPS consists in calculating the proportion between people who would be willing to recommend a company and those who would not recommend it. The creator of the NPS is Reichheld F., who in 2003 published a famous article in the Harvard Business Review: “The one number you need to grow”.

The eNPS methodology is based on one important question, which reveals the approach to the workplace and the work itself. It reads: “Please assess how likely it is that you would recommend a friend or family member to work in your company”. An 11-point scale (0–10) is used to answer this question. Evaluators from 0–6 are called Critics, Neutrals are those who marked 7–8 on the scale in the survey, while Promoters and the most involved employees choose answers 9 and 10.

To calculate eNPS, subtract the percentage of employees identified as Critics from the amount of Promoters. Scores can range from -100 (all Critics) to +100 (all Promoters).

The eNPS measurement works best when it is performed on a research sample that is best composed of all employees in the company. Thanks to this, you will avoid biased responses, which can happen if only extremely committed or unmotivated employees enter the study.

eNPS Formula

You can calculate the Employee Net Promoter Score from the following formula:

NPS (%) =% promoters -% critics

To calculate the NPS, which we express in numerical value, it is enough to subtract% of critics from% promoters. What can the results obtained in the survey look like? They range from -100% (only critics count here) to 100% (only recommenders). What is the interpretation of the result? It has been assumed that any score above zero is considered good, and any score above 50 is considered excellent. However, be careful as there may be a situation where we subtract 10% of the critics from 60% and we have a result of 50%, but we could have been passively satisfied with 30%.

7 reasons why eNPS gains an advantage over other research:

Accessible form — the eNPS test can be completed within a few minutes, and the answer to one question is not overburdening for the employee, so he is more willing to participate in it;

Transparency — basing the construction of the eNPS survey on an eleven-point scoring scale and obtaining a result in the form of a number guarantees the ease of interpretation of the survey by all employees;

Up-to-date results — the simplicity and legibility of the structure as well as the low cost of conducting the survey mean that the eNPS survey can be organized much more often than the final annual assessment;

Inspiration for improvement — the eNPS survey is a good source of information both in terms of the overall level of employee involvement in the company and in terms of individually identified problems;

Easy Implementation — eNPS allows you to obtain reliable data for management improvements that are actually expected by employees so that introducing appropriate changes in the company’s operations should not cause major difficulties;

Evaluation of taken improvements — eNPS allows you to verify the effects of initiatives taken to improve management in the interest of employee involvement;

Building relationship with an employee — asking about the degree of satisfaction and collecting information on comments confirms the employee’s genuine interest in his needs.

Conclusion

Separating unhappy employees from motivated and satisfied employees can help you analyze the responses. There is a lot of value and content in their responses that are worth analyzing. Implementing the eNPS methodology in the regular employee engagement and satisfaction survey does not require a lot of work, and will provide invaluable information for your company. Knowing what they think, how they perceive, and how they feel in an organization is critical to building a development strategy.