5 Easy Steps to Calculate Employee Net Promoter Score (eNPS)
Engaged employees are more productive, satisfied, and committed to staying with your company. In fact, business units with the highest employee engagement achieve a 21% increase in profitability compared to those in the lowest quartile. Engagement also boosts referral hiring, helping you attract top talent through employee networks.
But how do you measure engagement effectively? More specifically, how do you gauge how employees feel about your company? One powerful method is the Employee Net Promoter Score (eNPS), adapted from the customer-focused Net Promoter Score (NPS). Let’s explore this essential HR metric.
What is Employee Net Promoter Score (eNPS)?
The Employee Net Promoter Score measures employee loyalty and satisfaction. Like the original NPS for customers, eNPS is based on a single question:
“On a scale of 0–10, how likely are you to recommend [Your Company] as a great place to work?”
Responses are grouped and calculated into an overall score. A high eNPS often correlates with high employee retention and workplace satisfaction.
Why is eNPS Calculation Important?
Think of employees as customers and potential hires as prospects. If your employees are willing to recommend you, referrals become an affordable and effective hiring channel—with some studies showing a 40% conversion rate.
Key Benefits of eNPS
- Measure employee sentiment: A fast, efficient way to assess satisfaction and loyalty without lengthy surveys.
- Identify improvement areas: Low scores highlight potential engagement problems to investigate.
- Boost retention: Regular eNPS checks help you track sentiment and address issues before turnover rises.
- Benchmark performance: Compare engagement levels within your industry and track progress over time.
Limitations of eNPS
While simple and powerful, eNPS doesn’t capture all nuances of employee sentiment. Pair it with qualitative surveys and performance analytics to design effective engagement strategies.
Breaking Down eNPS by Teams
Instead of a single company-wide score, segment results by departments or business units. This provides deeper insights into team-specific challenges and successes.
How to Calculate eNPS in 5 Steps
The basic formula is simple:
eNPS = % Promoters − % Detractors
Here’s how to apply it effectively:
1. Prepare the eNPS Survey
- Use the core question: “On a scale of 0–10, how likely are you to recommend [Your Company] as a great place to work?”
- Optionally add an open-ended question for feedback.
2. Distribute the Survey
- Choose an online survey tool or integrate it into your HR platform.
- Ensure anonymity to encourage honest responses.
3. Collect Responses
- Communicate the purpose and value of participation.
- Set a clear deadline for completion.
4. Apply the Formula
Subtract the percentage of detractors from the percentage of promoters to get your final eNPS score.
5. Categorize Respondents
- Promoters (9–10): Loyal advocates who actively recommend your company.
- Passives (7–8): Satisfied but not enthusiastic; not counted in the score.
- Detractors (0–6): Unhappy or disengaged, potentially discouraging others.
What to Do After Calculating eNPS
1. Create an Action Plan
Analyze results beyond the overall score. Identify low-scoring teams or recurring issues and address them with targeted strategies.
2. Track Progress
Run eNPS surveys quarterly or biannually to measure the impact of your initiatives and adjust strategies as needed.
3. Offer Alternative Feedback Channels
Some employees may prefer to share input outside of a survey. Provide private, transparent channels for concerns using tools like Safe Voice.
Final Thoughts on eNPS
eNPS is a valuable tool for understanding employee sentiment and loyalty. Acting on your findings can lead to:
- Higher engagement: Address concerns to build a more positive workplace culture.
- Lower turnover: Keep valued employees longer, reducing hiring and training costs.
- Stronger employer brand: A high eNPS enhances your reputation and attracts top talent.
Remember, eNPS is just one part of a broader engagement strategy. Combine it with open communication, feedback sessions, and data-driven insights for the best results.
Boost Your eNPS with the Right Tools
Oriento is an all-in-one HR software platform that simplifies tasks like time-off management, performance reviews, hiring, and onboarding. Managers and employees can run performance evaluations using clear, online forms—helping you turn eNPS insights into action.
Register free and start improving your employee engagement today.
Learn more about people analytics solutions for HR teams and business leaders.