Employee Net Promoter Score: The Ultimate Guide In 2023

The act of measuring employee engagement is not simple. Because the concept itself is so abstract, we need to go beyond numbers and quantifiers. This is precisely where the use of employee net promoter score comes in.

Employee Net Promoter Score (eNPS) is definitely making waves in the corporate world as a powerful tool to measure how satisfied and loyal employees are. What's interesting is that eNPS is actually based on the Net Promoter Score (NPS) that companies use to gauge customer loyalty. It's like turning the same concept inward and applying it to employees.

But why does eNPS matter so much? Well, there are some pretty impressive stats that highlight the benefits of having a high eNPS score.

According to Gallup, businesses with highly engaged employees perform a whopping 147% better than their competitors in terms of earnings per share! And Deloitte found that companies with employees who feel a strong sense of purpose and engagement see a 30% boost in innovation and a staggering 40% decrease in employee turnover.

All in all, keeping track of eNPS can be a game-changer for companies looking to unlock their full potential and cultivate a work environment that's all about growth, creativity, and long-term success.

What is eNPS (Employee Net Promoter Score)?

Employee Net Promoter Score (eNPS) is a survey-based method of measuring employee satisfaction, happiness, and loyalty toward their workplace. By asking employees to rate the likelihood of them recommending their company as a great place to work, eNPS can provide a quantifiable measure of the overall level of employee engagement and loyalty.

The eNPS (Employee Net Promoter Score) is a metric that uses a scale from 1 to 5, where 1 means "not at all likely" to recommend, 3 represents neutral, and 5 means "extremely likely" to recommend. By asking employees to rate their likelihood of recommending their workplace, the eNPS can give insights into the factors driving employee satisfaction and loyalty.

Based on the eNPS scores, we can categorize employees into three groups:

• "Promoters" who score 4 or 5 and are highly satisfied and loyal to their company.
• "Passives," who score 3, maybe somewhat satisfied but not entirely loyal.
• "Detractors," who score 1 to 2, are generally dissatisfied with their workplace.

These categories can help organizations understand the strengths and weaknesses of their employee engagement strategies and take appropriate action to improve employee satisfaction and loyalty.

How to calculate the eNPS for your organization?

In an eNPS-based survey, the questions are numbered on a scale instead of a definitive “yes” or “no.” The scale usually ranges from either 1-10 or 1-5, depending on the survey.

Each survey respondent is then classified into either of these three categories:

• Promoter
• Detractor
• Passives

The calculation of eNPS is quite simple.

Employee Net Promoter Score = {(Number of Promoters - Number of Detractors)/Total Number of Survey Respondents} X 100

OR

Employee Net Promoter Score= Percentage of Promoters - Percentage of Detractors

The formula might seem confusing at first, but here’s a quick breakdown of what it actually represents:

• Detractors: These employees mostly respond with 1-2 scores. Such employees can be considered as actively disengaged with significant reservations about the organization.
• Passives: These employees mostly respond with 3 scores. While not disengaged, these employees have some ongoing concerns or issues with their jobs. While it might seem that the passives don’t have much weightage, these scores do matter while determining the number of survey respondents.
• Promoters: These employees mostly respond with 4-5 scores. This category consists of highly engaged employees who love what they do and will go above and beyond for the company.

Examples Of How To Calculate Employee Net Promoter Score

To give you a visual representation of how to calculate eNPS in a simple way, here are some easy examples that you can take reference from.

Example 1:

Let’s say your company has the following number of:

Promoters = 10
Passives = 20
Detractors = 10
Total Employees (Promoters+Passives+Detractors) = 40

eNPS = {(10/40) X 100%} - {(10/40)* X 00%}
= 25% - 25%
= 0

An eNPS score of 0 may not sound great, but it's considered "acceptable" within the eNPS scale. However, it's not exactly something to be celebrated.

In this example, the high number of Passives may suggest that employees aren't fully engaged or enthusiastic about their work and may not actively promote the company or recommend it to others.

That's why it's crucial to take the feedback of both Detractors and Passives seriously and work towards improving employee engagement and satisfaction.

By addressing their concerns and taking steps to improve their work experience, companies can boost their eNPS score and create a more positive work environment for everyone.

Example 2:

Let’s say your company has the following number of:

Promoters = 20
Passives = 10
Detractors = 10
Total Employees (Promoters+Passives+Detractors) = 40

eNPS = {(20/40) X 100%} - {(10/40) X 100%}
= 50% - 25%
= 25

Here, the eNPS is positive since promoters are higher than the detractors.

It means you are definitely doing something right with your organization. However, it's important to note that the number of Passives should not be ignored, as they may still have concerns or issues that need to be addressed.

By addressing the concerns of Passives and continuing to support the satisfaction and engagement of Promoters, the company can continue to improve its eNPS score and create a more positive work environment.

Example 3:

Let’s say your company has the following number of:

Promoters = 10
Passives = 10
Detractors = 20
Total Employees (Promoters+Passives+Detractors) = 40

eNPS = {(10/40) X 100%} - {(20/40) X 100%}
= 25% - 50%
= -25

In this example, we see that there are more Detractors than Promoters and Passives combined.

This can be an alarming signal that a significant number of employees are not happy or satisfied with their workplace, which could lead to high turnover rates and poor productivity.

It's crucial to address the concerns of Detractors and work towards improving their satisfaction and engagement. The company should also aim to convert Passives into Promoters by addressing their concerns and creating a more fulfiling work culture.

What Is A Good Net Promoter Score (eNPS)?

The purpose of an eNPS is to highlight the strengths and weaknesses of your organization.

Many companies opt to calculate the average out of several eNPS questions. In contrast, others estimate the individual eNPS score of each survey question.

Employee NPS scores can range from -100 (all survey participants are detractors) to 100 (all survey participants are promoters). However, for an eNPS score to be considered "good," the following score range is taken into consideration by leading organizations:

• A score below 0 signals a disengaged workforce and a pressing need to address organizational issues before they spiral out of control.
• With a score in the range of 0-10, you can breathe a sigh of relief knowing that your organization is on the right track, according to leading organizations.
• A score between 10-30 is a cause for celebration as it highlights the exceptional work culture you have fostered, leading to happy and engaged employees.
• Achieving a score of over 30 is a true breakthrough moment for your organization, setting you apart from the pack with a trailblazing work culture and an engaged, enthusiastic team.

Maintaining a high eNPS score is important, but it shouldn't lead to complacency. A high eNPS score indicates that your employees are engaged, but continuous efforts are needed to sustain it.

On the other hand, if the collected eNPS is not up to your standards or is relatively poor, it shows a low level of engagement. It is now time for you to develop action plans to address the weaknesses that are impacting the company's success.

If you are unsure of where to get started or what changes you need to start making, don't worry – Vantage Pulse has got your back! Our employee pulse survey tool comes with a resource library that's packed with articles covering everything from the basics to more advanced topics.

So whether you're a beginner or an expert, we've got you covered. You'll get all the guidance you need to make the most of your eNPS-based surveys and start making positive changes.

Ready to get started? Take a free demo with our team and learn how Vantage Pulse can change your employees’ feedback into quantifiable metrics.

NPS v/s eNPS: Are They The Same?

Well, not quite.

The term "NPS" was coined in 2003 by Fred Reichheld of Bain & Company in his Harvard Business Review essay "The One Number You Need to Grow." It quickly became a key criterion for estimating how likely customers are to refer a company's services to a friend or colleague.

Back in the day, Net Promoter Score or NPS was used in market research to measure the customer experience that an organization could provide.

Reichheld later published an updated version focusing exclusively on employee loyalty in a 2007 article titled "The Ultimate Question 2.0." That's when the modest NPS was transformed into the now-famous “employee NPS” or eNPS.

To put it clearly, NPS acts to measure customer satisfaction levels. Meanwhile, the eNPS was designed to gauge the employee experience.

Top 10 Benefits of Calculating eNPS For Your Organization

Think of Employee Net Promoter Score (eNPS) as your company's secret superpower. Companies can dramatically increase their profitability by collecting the “pulse” of their workforce and learning what motivates and drives them.

Here are ten benefits of using eNPS that will have you saying, “I wish we had started measuring our employees’ satisfaction levels sooner!”

It serves as an in-depth barometer for employee satisfaction, measuring the overall mood and contentment of the workplace.

By gauging employee feedback, companies can more effectively highlight the areas where they are thriving and identify opportunities for improvement.

Employee motivation and involvement soar when they feel heard and valued, and eNPS provides a platform for this kind of employee-company dialogue.

With eNPS as a metric, companies can showcase their positive work environment, helping them attract the best and brightest in their industry.

Keeping employees happy and engaged helps reduce turnover, saving companies time and resources on constantly having to train new hires.

Communication and feedback between employees and management are essential components of a thriving workplace, and eNPS facilitates this type of open dialogue.

Improved employee satisfaction leads to higher productivity, better teamwork, and increased profits, making eNPS a valuable tool for any company.

Positive work culture is key to attracting and retaining top talent, and eNPS provides a way for companies to measure and improve their culture.

Employees who feel valued and fulfilled in their jobs are more likely to stay with a company for the long term, and eNPS helps companies create this kind of work environment.

When employees are happy, and the company is thriving, it's a win-win situation for everyone involved, making eNPS an essential tool for any business looking to succeed.

Disadvantages Of Poor eNPS Score

We all need people who will give us feedback. That’s how we improve.
~ Bill Gates, co-founder of Microsoft

Poor eNPS is just not a bad metric that you got on a survey. It is an indication that your workplace might be demotivating, uninspiring, or worse, toxic to work at.

The repercussions of having low employee Net Promoter Scores (NPS) can be far-reaching and damaging to a company's success. The below scenarios would be far too common:

1. A revolving door of employees: Unhappy workers will not stick around for long, leading to a high turnover rate and the added expense of constantly having to hire and train new staff.
2. A lack of motivation: Disgruntled employees are less likely to bring their A-game, resulting in decreased productivity, subpar work, and missed deadlines.
3. A tarnished reputation: If employees are dissatisfied, they are more likely to spread the word, causing harm to the company's reputation and potentially scaring off customers, potential employees, and investors.
4. Unsatisfied customers: An unhappy employee often equates to poor customer service, which can lead to a drop in customer satisfaction and lost business.
5. A bleak work environment: Low employee morale can have a ripple effect, leading to decreased collaboration, teamwork, and overall positivity in the workplace.

7 Tips On How To Improve Your Existing eNPS Score

Now that we are aware of the importance of assessing eNPS for your employee engagement strategies let's look at some practical advice that will help you raise your total eNPS score by ensuring that you get regular, honest feedback:

1. Focus On Asking Simple Questions

The more difficult the question, the more likely it will be misunderstood, misread, or, worse, skipped entirely.

The general rule of thumb is If the question asks two separate questions, it is advisable to break it into two separate questions. Also, as much as possible, use straightforward and simple language.

Here are some examples of questions that you might wish to avoid using in eNPS surveys:

• On a scale of 1 to 5, how satisfied are you with the level of support and recognition you receive from your manager and the support you receive from your peers?
• On a scale of 1 to 5, to what extent do you endorse the proposition that the organization embodies an optimal degree of professional proficiency in its operations?

2. Prioritize Anonymity Without Compromising On The Survey’s Effectiveness

Many organizations tend to have rose-colored glasses on, only focusing on positive comments and celebrating positive outcomes.

Worse, when they receive bad feedback, they take it personally and embark on a witchhunt to discover the individual who allegedly "broke their trust."

When such scenarios happen, employees can often go as far as to give favorable answers that they know their bosses will be happy with. This, in turn, totally degrades the very reason you are sending out an eNPS survey.

Can you envision a workplace culture where employees are frightened to use their true IP address to complete an employee survey?

We at Vantage Circle know that anonymous surveys can be a game-changer when it comes to gathering honest feedback from employees. But here's the thing— sometimes, the feedback you get might not be what you were expecting. It's important to keep this in mind.

When you seek out employees to find out who posted a specific piece of feedback, doing so could negatively impact future survey results and discourage people from participating honestly.

That’s why, at Vantage Pulse, we prioritize anonymity. It creates a safe space for employees to share their thoughts and insights without fear of repercussions. And this, in turn, leads to more comprehensive feedback and better decision-making for organizations.

But at the same time we knew that follow-ups to feedback can be really helpful for HRs to gather more information pertaining to the given feedback.

That's precisely why we designed our simple yet handy "Conversation" feature. The Conversation feature makes it easier for survey administrators to follow up on any employee feedback through an easy-to-use chat interface. Meanwhile, the follow-up response will land directly in the inboxes of the targeted survey respondent.

The entire process is instant, easy, and hassle-free. The best part? Both the sender and the receiver will be completely anonymous to each other!

3. The inner loop—turning employee feedback into action.

Okay. So, you had a bad eNPS score. What’s next?

Do you try out a bunch of new initiatives and hope that the next survey shows some better scores? Or do you painstakingly go through the survey results and try to identify data, trends, and behaviors towards what is influencing your employees’ views towards the company?

If I were you, I would stop shooting my shot in the dark and definitely go for the second option, which is the “internal loop.”

What Is The "Internal Loop"?

The purpose of the internal loop is to scavenge insights from employee feedback data and use those insights to design an action plan to solve the problems identified. Doing so ensures that you spend time and resources toward driving change that your people actually want to see.

Once you get your eNPS score, it’s necessary to address everyone’s feedback and highlight what you plan to do next.

• For negative feedback, be transparent and forthcoming about the plans you have undertaken to solve the problem. Also, share the rough deadline of when the implementation is supposed to be completed.
• For the positive feedback, thank people for taking the time to take the survey. Additionally, assure them that you will gradually build upon these strengths to enhance the employee experience.

How Vantage Pulse Can Help?

Picture this: You're tracking your Engagement Score, observing its evolution over time. Or, you're delving into the eNPS Distribution, gauging the average engagement across your Employee Lifecycle. Perhaps you're identifying the high and low points – the categories where your employees rate you the highest or, equally importantly, the lowest.

And that's just the beginning. Vantage Pulse offers so much more.

The beauty of the Vantage Pulse Dashboard is not just in the wealth of data it provides, but in how that data can be leveraged. It's about using these insights to foster a more engaged, more productive, and ultimately happier workforce.

Curious to see how Vantage Pulse can supercharge your organization's engagement? We'd love to show you. Connect with us for a free demo, and let's start the conversation about how your organization can truly flourish with Vantage Pulse.

4. The outer loop—how employee feedback empowers larger initiatives.

To understand a company's culture, listen to its employees' stories.
~ John Coleman, author and business expert

The explicit goal of the outer loop is simple. It’s to make sure that senior leaders account for not only company-wide issues revealed by survey data but also broader people issues.

The scope of the outer loop can be broad, encompassing a range of topics that impact the overall health and well-being of the organization and its people.

It can range anywhere between, such as whether the company has created inspirational working conditions and what it could do to empower employees further.

A strong outer loop displays three qualities:

• Robustness: An outer loop doesn’t limit itself to one source. From surveys, and customer insights to benchmarking data across the industry and company, the decision-making process is aided by multiple sources that validate why the company should go forward with that choice.
• Rigorous: In an outer loop, leaders actively gauge how a new initiative might cause a ripple effect impacting various areas such as retention, revenue, and other measures.
• Transparent: When a company is transparent about its efforts to improve, employees feel more confident in the company. This makes the outer loop trustworthy. Even if the company decides not to use an employee's suggestion, as long as it follows its usual process and gives a good reason, it's okay. It's even better if the company keeps the suggestion in case things change later.

5. Continuous Improvement Through Tracking And Measuring eNPS Score

Now that you have an eNPS score, don't assume you're good for an entire year and plan your long-term strategy around it.

The issue with calculating the eNPS score is that it is highly subjective. The employee who awarded your organization a 4 in Week 1 may change their mind in Week 2 and give it an 8.

Rather than approaching eNPS as a one-time fix, leaders must quantitatively track and assess their rankings on a regular basis.

A more frequent and timely survey option allows you to examine the company's engagement trends and eNPS over time. It will assist you in determining whether or not your action plans are yielding any positive outcomes.

Using internal benchmarking is another great way to get the most out of your eNPS survey.

By comparing your current results to those from previous surveys, you can track your progress and identify areas where improvements have been made, as well as areas that may need additional attention.

And not only that, but you can also compare your eNPS scores to industry benchmarks to see how your organization stacks up against others in your field.

This will give you valuable insights and help you make informed decisions on how to improve your workplace culture and employee experience.

Organizations must recognize the necessity for more efficient, real-time feedback mechanisms like pulse surveys, which offer a continuous, dynamic process rather than a static, one-time event.

By harnessing the power of pulse surveys, organizations can customize the frequency of data collection, establishing a routine cycle of feedback. This ensures a steady stream of valuable insights, facilitating ongoing improvements and adaptations in response to employee sentiment, thus promoting a perpetually evolving and responsive workplace environment.

6. Improve Your Employee Engagement Strategies

Imagine this. You walk into a workplace buzzing with excitement, where employees are motivated and energized.

The reason behind this? A company that has put in the effort to foster an environment where employees feel heard, appreciated, and get the opportunities to grow.

Open communication channels, regular recognition, investment in professional development, a healthy work-life balance, collaborative projects, and employee involvement in decision-making are just some of the ways to make your employees feel like a valued part of the team.

Add in initiatives that promote health and wellness, and you've got a winning recipe for employee engagement.

The result? Happy employees who are more productive, motivated, and willing to spread the good word about their employer. When your employees are shining, your eNPS will follow suit.

Actively research what has worked for other companies. Take the help of your HR managers and senior executives. Or skip the middlemen and directly ask your people as to what changes they would like to see in the organization.

7. Openly Communicate Your Action Plan

Once you get your eNPS score, it’s necessary to address everyone’s feedback and highlight what you plan to do next.

Communicating your action plan after an Employee Net Promoter Score (ENPS) survey is an opportunity to show your employees that their feedback is valuable and that you're committed to making positive changes in the workplace.

For negative feedback, be transparent and forthcoming about the plans you have to solve. Additionally, inform how much time the implementation would require.

Here's how to do it with creativity and impact:

Step 1: Hold a "Feedback Frenzy" meeting

Gather your employees together for a lively meeting to discuss the eNPS survey results. Use engaging visuals to present the feedback, both the good and the areas for improvement.

Step 2: Share your "Plan of Attack"

Outline your action plan to tackle the feedback received, using colorful diagrams and charts to illustrate the steps you'll take. Encourage employee involvement and share specific ways they can contribute to the plan.

Step 3: Keep the conversation going

Establish a clear communication channel for updates on the progress of the action plan. Share regular success stories, and invite employees to share their thoughts and ideas along the way.

Step 4: Celebrate together

When you achieve your goals, make sure to celebrate together as a team. Recognize the efforts of those involved and acknowledge the positive impact of employee feedback. For the positive feedback, thank people for taking the time to take the survey. Additionally, assure them that you will gradually build upon these strengths to enhance the employee experience.

8. Review Your Employer Branding

Today's employees are very vocal about their opinions. If not inside their organization, then certainly outside of it.

Sometimes, the most effective way to know how to improve your company's shortcomings is to go online and check what others are saying about you.

Online review sites like Vantage Lens, Glassdoor, and even LinkedIn may prove to be a goldmine in gathering information about why your engagement levels are dipping despite you making strong efforts to increase it.

Similarly, compare what your competitors are doing right. It will help you fill in the gaps and make the relevant changes that employees actually want to see.

Recommended Article: Employer Branding- What, How and Everything in Between

eNPS Survey Questions: Do’s And Don’ts

The way your employees feel is the way your customers will feel. And if your employees don't feel valued, neither will your customers.
~ Sybil F. Stershic, Author, 'Taking Care of the People Who Matter Most: A Guide to Employee-Customer Care'

Tips for Designing Impactful ENPS Questions

When framing employee NPS (Net Promoter Score) questions, it's important to include metrics that accurately measure different aspects of the employee experience. Some key metrics to consider include:

1. Relationship with managers: This measures how employees perceive their interactions with leadership, which is crucial because a positive relationship can significantly boost morale and productivity.

2. Relationship with peers: It's important to gauge employees' rapport with their colleagues, as a healthy peer relationship encourages collaboration and a positive work atmosphere.

3. Recognition: By focusing on recognition, we can assess whether employees feel appreciated for their efforts, which is a powerful motivator and a driver of job satisfaction.

4. Compensation and Benefits: This section helps us evaluate if our employees believe they're being compensated fairly for their work, which can significantly affect their loyalty and commitment.

5. Engagement: By assessing engagement, we can measure the emotional commitment and enthusiasm employees have towards their work and the organization, and identify areas that might need improvement.

6. Work environment: This category allows us to understand employees' perception of their physical and psychological work conditions, which directly impacts their productivity, job satisfaction, and well-being.

7. Autonomy: By asking about autonomy, we can determine if employees feel they have the freedom and trust to make decisions, which can boost creativity, innovation, and job satisfaction.

8. Personal growth: This section helps us understand if employees feel they're progressing in their careers and gaining new skills, which can greatly influence their motivation and retention.

9. Alignment: Questions around alignment allow us to measure if employees' personal goals align with the organization's objectives, which can foster a sense of purpose and increase productivity.

10. Wellness: Including a wellness category can help us understand employees' well-being and mental health status, crucial for maintaining productivity, reducing absenteeism, and promoting a healthy work culture.

The Don'ts of Crafting ENPS Survey Questions

When framing employee NPS (Net Promoter Score) questions, it's important to avoid certain things to ensure that the questions are effective and provide valuable insights into the employee experience. Some things to avoid include:

• Biased or Leading Questions: Avoid asking questions that are biased or leading, as they can skew the results and provide an inaccurate picture of the employee experience.
• Complex or Confusing Questions: Keep the questions simple and easy to understand to ensure that employees can respond quickly and accurately.
• Overly Specific Questions: Avoid asking overly specific questions that may not be relevant to all employees or that may not provide a comprehensive understanding of the employee experience.
• Unnecessary Questions: Avoid asking unnecessary questions that do not provide valuable information or that can be answered through other means.
• Confidentiality Concerns: Avoid asking sensitive or personal questions that may make employees feel uncomfortable or that may raise concerns about confidentiality.
• Insufficient Follow-Up: Avoid framing questions without considering the follow-up process to ensure that the insights gained from the NPS responses can be acted upon.

If you steer clear of these potential pitfalls, you'll be able to create well-crafted employee NPS questions that provide valuable insights into the employee experience.

So remember to keep the questions clear and relevant, avoid bias or leading questions, and respect employee confidentiality. That way, you'll be able to get the most out of the feedback you receive and make positive changes to your workplace culture.

eNPS Survey Questions That You Need To Include In Your Next Survey

On a scale of 1-5, what would you rate for the following statements that coincide with your experience in this organization:

1. I would recommend my organization as a great place to work to my friends and families.
2. I will be happy to recommend the products/services my organization makes.
3. My manager cares about me as a person and values my opinion.
4. Management emphasizes team work within the organization.
5. My manager gives me enough feedback to understand if I am doing my job well.
6. My organization encourages employees to give recognition to one another.
7. If I do great work, I know that it will be recognized.
8. My coworkers welcome opinions different from their own.
9. The processes for calculating pay in our organization seem fair and unbiased.
10. Taking into account my responsibilities, skills, and local market conditions, I am satisfied with my overall compensation.
11. My workplace is free from distractions, and I find it easy to focus on my work.
12. I am satisfied with my opportunities for professional growth.
13. I feel that I can maintain a healthy balance between work and my personal life.
14. My organization cares about the mental health of its employees.
15. I understand how my role at my workplace correlates to the organization's success.

FAQs: Employee Net Promoter Score

1. What is an Employee Net Promoter Score?

An Employee Net Promoter Score (eNPS) is a metric used to gauge employee loyalty and satisfaction. It's calculated from responses to the question: "On a scale of 1-10/1-5, how likely are you to recommend this company as a place to work?"

2. How do you calculate Net Promoter Score for employees?

On a 1-5 scale, promoters are those who score 5, passives score 4, and detractors score 1-3. eNPS is calculated by subtracting the percentage of detractors from promoters. Passives aren't counted. The result ranges from -100 to +100.

3. What is a good Employee Net Promoter Score?

A good eNPS varies by industry, but generally, a score above 0 is considered good, above 20 is great, and above 50 is excellent. It means that more employees are promoters rather than detractors of your company.

4. What is an example of Employee Net Promoter Score?

Suppose 50% of employees score as promoters (5 on a 1-5 scale), 30% are passives (4 on a 1-5 scale), and 20% are detractors (1-3 on a 1-5 scale). Subtracting detractors from promoters gives an eNPS of 30, which is considered good.