The eNPS or Employee Net Promoter Score is a crucial indicator of how satisfied your employees are with your company. It represents employee loyalty and engagement to your business. According to many studies, happier employees have better performance. So, you may ask, “What is a good eNPS score?”
To understand what a good eNPS score is, first, you have to understand what eNPS is and how it works. Without wasting any more time, let’s dive into the details of eNPS.
What is eNPS?
The eNPS is an employee satisfaction metric that represents employee satisfaction regarding your company and employee workplace. This method originated from NPS (Net Promoter Score), a metric to measure customer loyalty. It comes as a question like, “How likey are you to recommend your company as an employer to others on a scale of 0 to 10?” The result is calculated in a range of -100 to 100. As you can guess, -100 is very bad and 100 is highly positive.
eNPS Groups
Depending on the rating result of the questions, the employees are categorized into 3 groups.
- Promoters
- Passives
- Detractors
Those who rate the company 9-10 are called promoters. They are engaged, happy, and loyal employees who will stay with you and spread good word about your company. Then comes the passive employees who rate your company 7-8. They are not emotionally invested and may recommend your company. But they won’t go out of their way to promote your company. Finally, those who rate 0-6 are the employees who are unhappy and are at risk of leaving your company. They are called detractors and might even damage your reputation in the future.
The target is not to divide the employees and label them as good or bad. You need to listen to the detractors about their complaints. Their point of view may indicate some crucial problem that you don’t know about or have been ignoring for a long time. Solving their problems can make your company a better place, open new doors to development, and help you improve the eNPS.
Why is eNPS Important?
The score of eNPS is important because it indicates how healthy your workplace is. The main job is not to look at the score but to understand the reasons that resulted in the score. The relationship between happy employees and business success is deep.
According to research named “Happiness and Productivity”, employee satisfaction can increase productivity by around 12%. On the other hand, unhappy employees can be 10% less productive than the others.
Another significant study by Gullip named “State of The Global Workolace” shows how important employee engagement and happiness are. According to the study, a workplace with happy employees will achieve 21% more profitability. It will also bring you 17% higher productivity and 41% lower absenteeism. And you can guess how big of an impact that will have on your business!
How to Calculate eNPS?
There is a standard formula for calculating eNPS based on the three groups mentioned earlier. The formula is:
((Number of Promoters – Number of Detractors) / Total responses) x 100
There is another short form of this formula that is popular and will get you the same results.
Total % of Promoters – Total % of Detractors
The second formula is simple and takes less work compared to the first one. You can use any one of these according to your convenience.
With the question, we recommend using a small field where the employees can explain their reason for the rating. It will give you a quick insight into the overall situation and help you make quick decisions. Let’s use the first formula and look at an example so that you can understand the mechanism properly.
Suppose you have a company named X that has 68 employees in total. You did a survey to calculate the eNP of your company and the results are as follows.
- Promoters – 15
- Passive – 33
- Detractors – 20
If we use the first formula to calculate the eNPS of company X, you will get
((15-20) / 68) x 100 = -7.4
So according to the results of your survey, the eNPS of your company X is -7.4. You can use the same procedure to calculate the eNPS of any company by just changing the value according to the survey result. Pretty easy, right?
What is a Good eNPS Score?
To remind you, the eNPS score can be anything between -100 and 100. It is a huge range of scores. A score of something between 10 and 30 is considered good worldwide. That doesn’t mean you can aim for a higher score. An eNPS score of 50+ will be considered excellent and 80+ will mean your company is the best in the class!
However, the final score of eNPS can vary from organization and industry type. Therefore, you should consider the eNPS results relatively. Every company has a unique working culture and characteristics. So, comparing your environment with your own goals and history will help you understand what you need to do to develop more. Every time you calculate your eNPS, compare it with the previous score. You will be able to see the growth rate and effectiveness of your previously taken decisions easily.
Best Ways to Evolute eNPS
Now, you can do the eNPS survey in many ways. Here, we will look at 5 top methods of measuring the eNPS of any company.
- Email Surveys: Email surveys are a good option for this purpose. It is efficient and will take maybe 2-4 minutes for an employee to complete. However, the drawback is that the email surveys may lack depth in the answers.
- Pulse Surveys: Pulse surveys can be an answer to the question. You can run surveys on a regular basis to keep tabs on the engagement and progression of your workspace. But, the employees may get survey fatigue and lose interest. So, maintain a balance to get the real answers.
- KPI Tools: One of the best solutions is integrating an eNPS form with KPI or HRM software. It can come as a little feedback box somewhere in the dashboard after a specific time. It will automate the whole process and save a lot of time.
- Exit Interviews: It is a great idea to interview an employee before they leave. They will give you honest and straightforward answers. You can discover what pushed them out to prevent any future departures in the future.
- Focus Groups: You can gather employees from different departments into small groups and have an open discussion for deeper insights. You can identify specific problems and address them using this method.
What is the Best Software to Calculate eNPS?
Following the formulas mentioned earlier, you can calculate the eNPS of your company manually. But it is a complex process that takes a lot of time and effort. Rather than doing it manually, you can try automatic systems. As we mentioned earlier, KPI tools can be a perfect solution to this problem.
Of course, there are lots of options for you when you choose best KPI tools. Among all of them, ProKPI stands in a different league. With a friendly interface, custom surveys, and many advanced reporting options, ProKPI is always several steps ahead of its competitors.
How Does ProKPI Help in eNPS?
ProKPI is not dedicatedly built just for eNPS, it is a multi-functional platform where you can set goals and track the progress. Some of the features make ProKPI the perfect tool for eNPS. Let’s see what you can do with it that helps you in eNPS.
- Create customized surveys according to the unique context and requirements of your organization
- Keep tabs on eNPS trends over time as the industry standards evolve
- Benchmark your current score against your previous scores and industry standards
- Deploy the process easily using built-in feedback analysis and action planning tools
If I put it in simple words, you can create eNPS forms, track and compare the progress, and make easy decisions using ProKPI. This covers every aspect of measuring eNPS in an easy, fast, and smart process.
Bottom Line
In the end, it is crucial to maintain a good eNPS score. This score signifies your working environment and policies that add to your reputation. And, the business development and growth factor is also always there. So, even if you have a bad eNPS score, start working on improving it. Without a doubt, it will benefit you in the long run.
FAQs
How much does ProKPI cost?
ProKPI has a reasonable and flexible subscription-based pricing system that can adjust to your business and budget. It depends on your team size. The pricing starts from $29 and can go up to $99 or in some cases more.
What is the easiest way to measure the eNPS score?
The easiest way will be an automated system with features that match the mechanism of calculating eNPS. ProKPI will be a great choice for this as it offers multiple functionalities including eNPS-friendly features.
How often should eNPS be measured?
Normally, most of the companies measure eNPS bi-annually or quarterly. Regular eNPS checking will help you track the progress of your score and workplace.