- What is eNPS?
- How is eNPS calculated?
- Viewing your organization's eNPS
- Is eNPS a complete metric of employee engagement?
What is eNPS?
The employee Net Promoter Score (eNPS) is a measure of employee loyalty to your organization.
It is built upon the concept of the Net Promoter Score (NPS), which was originally developed by Fred Reichheld and Bain & Company to help companies measure customer loyalty to their products or services. It was later adapted to measure the strength of the relationship between employees and the organization they work for using the question:
How is eNPS calculated?
A scale of 0 to 10 is used to measure this question. Depending on how an employee responds, s/he will be categorized as a Promoter, Passive or Detractor:
- Promoters (score of 9 or 10) are internal and external ambassadors for your company. Internally, they boost morale of those around them and are supporters of your business’ goals. Externally, they spread a positive message to those outside the business making it easier for you to attract new hires.
- Passives (score of 7 or 8) are those that believe your organization "is a great place to work, but…". They see key areas where improvements can be made and prolonged neglect of these issues can lead passives to becoming detractors.
- Detractors (score of 0 to 6) have major concerns about their role in the organization. Areas of concerns that they care about (and possibly previously voiced to you) have appeared to be ignored. This eats into their morale and performance, and results in a negative employer brand.
The score is then calculated by subtracting the percentage of Detractors from the percentage of Promoters. Passives are not included in the calculation because they are considered to be neutral (neither for or against promoting your organization).
The result is an eNPS that ranges from -100 to + 100. On average, we see an average eNPS of around 20 to 30.
Viewing your organization's eNPS
On your dashboard's Overview page where your Engagement score is shown, click on the link labeled as “Loyalty -->”.
You will then see your eNPS score, as well as a breakdown of the percentages and numbers of Promoters, Passives and Detractors. The graph will also change to show your eNPS trends and allow you to determine if there’s any significant changes to your eNPS.
Is eNPS a complete measure of employee engagement?
We're often asked whether eNPS is the best single measure of employee engagement. The answer is "No".
While it is a popular metric used by HR practitioners because it is simple and easy-to-use, organizational psychologists describe it as only one dimension of the employee experience. As a singular measure, it lacks actionability.
Aligned with this understanding of engagement, Perked! measures eNPS as only one element of the overall Engagement score. We also measure other aspects of what defines engagement, namely vigor, dedication and absorption. Check out how you can measure Engagement more holistically. In addition, we measure outcome (employee engagement) vs. driver metrics separately so that you know what to focus on to drive actionable change. Here is more insight into the difference between outcomes vs. driver metrics.