Why the Employee Net Promoter Score (eNPS) is Crucial to Employee Retention

The business landscape has undergone a transformation as a whole in recent years. When it comes to HR, this also applies to the management of the workforce, with the wants and demands of employees now different. In the past, it was common for employees to stay with the same company for the majority of their careers — but this is increasingly rare. 

For HR practitioners and employers looking to improve employee retention, the change in employee mindset now means that a variety of factors come into play when an individual is choosing an employer. This includes employee engagement, growth potential, work-life balance, or even flexibility when it comes to work arrangements. 

As such, it’s absolutely crucial to maintain a strong Employee Net Promoter Score (eNPS) in order to measure the loyalty of your employees. 

What is an Employee Net Promoter Score (eNPS)

You might have heard of the general Net Promoter Score (NPS), which is basically a metric used by companies to gauge customer satisfaction. This is a global index that’s crucial when it comes to tracking the happiness — and loyalty — of your business’ customers, while offering an indication of what needs to be improved. 

The eNPS is effectively a similar metric, but one that helps organisations monitor the happiness of their employees. Just like NPS, eNPS is measured based on a simple question: 

On a scale of 1–10, how likely are you to recommend this organisation to your friends and family?”

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Similar to the general NPS scoring system, those that score between 0–6 are considered to be Detractors, while those that score between 7–8 are Passives. Respondents who answer between 9–10 are considered to be Promoters. 

To get your actual eNPS score, take the percentage difference between Promoters and Detractors, or use this formula: 

Your score will range from -100 to +100, and anything above 0 should be considered to be a decent score. However, this will differ from region to region, industry to industry, and other factors — use it as a gauge to monitor the happiness of your employees. 

How to improve the eNPS score?

There isn’t one single answer to this, but here are a couple of tips to get you started: 

• Understand the needs and wants of your employees
• Send an accompanying survey with the eNPS questionnaire in order to gauge what needs improvement 
• Conduct an HR gap analysis to ensure that your employees are engaged and involved 
• Be transparent about the results with your employees, and involve them 
• eNPS score improvement will be a continuous process, not a one-off solution

Read more about that here. In short, your eNPS score will offer you insight behind your employee retention, while understanding what can be improved inorder to retain the best talents at your organisation.