What is eNPS
Net Promoter Score (NPS) was introduced by strategist Fred Reichheld in his 2003 Harvard Business Review article titled “One Number You Need to Grow”. NPS tries to measure the loyalty of a customer towards a company.
This concept has since been extended to cover employee NPS (eNPS). Employees are asked on a 0 – 10 scale, “How likely is it you would recommend this company as a place to work?”. Based on their responses employees are bucketed into three categories – Promoters (9-10), Passives (7-8) and Detractors (0-6). Employee NPS = Promoters (%) – Detractors (%). This value can range from -100 to +100.
Understand your score
If your score is negative, it means that your employees are on an average detractive. This would also be an indication to employee engagement issues in the company. If your eNPS is positive, then on an average your workforce is promotive. Greater the positive score, more likely are your employees to recommend your company as a place to work, and to feel engaged at their workplace thus giving their best at work.
What drives your eNPS?
Getting the eNPS is only job half done. You also need to further understand and improve the main drivers of engagement and employer brand advocacy. Remember just a score without deeper insights into the root cause isn’t very useful.
TIP: HappyOffice through data analytics finds the drivers that have the greatest impact on your company and team engagement. Concentrate on these priorities to improve engagement and company culture.
What are the things that the promoters love about your company that makes them more likely to recommend it to friends? Is it possible for you to deliver these benefits to Passives and Detractors as well.
What is holding Passives back from becoming Promoters? Is there some significant organizational change involved in getting them more engaged or are there certain low hanging fruits that can be implemented quickly that would make them Promoters of your company.
What are the major reasons for dissatisfaction among detractors? Is it something that can be changed easily or are these early signs that it’s time for major organizational overhaul.
Start working to improve in 5 easy steps
Go through the qualitative feedback to understand why they would or wouldn’t recommend your company. Try and understand the root cause of the reasons stated. What drives employee engagement and employer advocacy at your company.
TIP: Go through HappyOffice qualitative feedback for your team/company to understand more about why your employees wouldn’t actively promote the company.
Once you understand the key drivers of employee engagement, you need to design changes in your engagement strategy leveraging this new information. Look at the priority sections for the company/team to figure out the set of short-term and long-term interventions which will alleviate employees’ pain points and help improve engagement, loyalty and advocacy.
Nothing is worse than receiving feedback and not communicating the action plan. Employees need to be assured that leaders and managers in the organization are keen to act on their feedback. One method is to bucket feedback/ideas into these 3 lists :
a. Can be done immediately -These interventions/actions are low hanging fruits which can be implemented immediately without a long approval process. Examples could be celebrations of key festivals to build an inclusive culture, holding AMAs with senior management to improve understanding of vision of the company among employees etc.
b. Can be done in sometime – These interventions are important to employees but might involve a longer approval process, co-ordination with external parties or greater stakeholder management. Examples could be implementing policies around work flexibility to improve work-life balance, reviewing the current performance management system to make sure high-performers feel rewarded etc.
c. Cannot be done – Action on certain feedback cannot be taken because of compliance issues, ethics, company regulations, current budgetary constraints or current business strategy etc.
These categories and the reasons for bucketing feedback should be clearly communicated to employees through either town halls or team meetings or over email etc. This ensures that employees understand that their feedback was considered valuable and the reasons behind leaderships ability or inability to implement changes.
Implement interventions based on this new engagement design. Acting on the feedback is the most important step, because this gives the signal to the employees that both they and their feedback are valued in the company. This creates the right incentive for them to give honest feedback the next time as they feel a part of the movement to create a better workplace where they can deliver their best.
5. Review and Repeat
Once you have rolled out a set of interventions it is important relook at your eNPS to see how well they are being received by the employees. Continue the process by the working on the next set of priorities and repeat the process to improve employee engagement and loyalty.
Tip: HappyOffice displays historical engagement through an interactive chart. Use this powerful tool to monitor engagement of the whole company, different departments, high performers, women employees and much more.
Would love to hear more about your experiences of using eNPS as a form of feedback in your organization. Leave your comments and suggestions below.
Note : Net Promoter, Net Promoter Score and NPS are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld