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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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eNPS

In today's competitive business landscape, retaining and engaging top talent is more important than ever. But how do you truly gauge the sentiment of your employees and understand their overall satisfaction with their work experience? Enter the Employee Net Promoter Score (eNPS). This simple yet powerful metric has become a go-to tool for organizations seeking to measure employee engagement and loyalty, ultimately leading to improved performance and a thriving workplace.

What is eNPS?

eNPS stands for Employee Net Promoter Score. It is a metric used to measure employee engagement and loyalty by asking one simple question: "On a scale of 0 to 10, how likely are you to recommend this company as a place to work?"

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What are the benefits of using eNPS?

eNPS are beneficial because:

  • Measures employee engagement and loyalty: eNPS provides a simple and effective way to gauge how employees feel about their work and the company.
  • Identifies areas for improvement: The eNPS can help companies identify areas where they need to improve to create a more positive work environment.
  • Tracks progress over time: By measuring eNPS regularly, companies can track their progress and see how their efforts to improve employee engagement are paying off.
  • Benchmarks against industry standards: The eNPS can be used to benchmark a company's performance against industry standards.
  • Improves talent acquisition and retention: A high eNPS can help companies attract and retain top talent.

What are some common mistakes to avoid when using eNPS?

Common mistakes to avoid when using eNPS are:

  • Not acting on the results: The most important step is to take action on the feedback you receive from your employees.
  • Not communicating the results: Share the eNPS results with your employees and explain what you are doing to address their concerns.
  • Not comparing apples to apples: Make sure you are comparing your eNPS to other companies in your industry and of similar size.
  • Not measuring eNPS regularly: Track your eNPS over time so you can see how your efforts are impacting employee engagement.
  • Using eNPS as the only measure of employee engagement: eNPS is just one measure of employee engagement. It is important to use other measures as well to get a complete picture of employee sentiment.

Where can I find more information about eNPS?

You can find more information on eNPS at:

  • Fred Reichheld's website: https://www.bain.com/consulting-services/customer-strategy-and-marketing/net-promoter-score-system/
  • The Society for Human Resource Management (SHRM): https://www.shrm.org/hr-today/news/hr-magazine/pages/0313-net-promoter-system.aspx
  • Forbes: https://www.forbes.com/sites/forbestechcouncil/2022/06/07/what-your-net-promoter-score-is-trying-to-tell-you/
  • LinkedIn: https://www.linkedin.com/pulse/what-your-employee-net-promoter-score-kustom-hr

How does eNPS work?

Employees are grouped into three categories based on their response:

  • Promoters (score 9-10): These are employees who are enthusiastic about their work and are highly likely to recommend the company to others.
  • Passives (score 7-8): These employees are satisfied with their jobs but may not be actively engaged or loyal.
  • Detractors (score 0-6): These employees are unhappy with their jobs and are likely to spread negative word-of-mouth about the company.

The eNPS is calculated by subtracting the percentage of detractors from the percentage of promoters. A higher eNPS indicates a more positive and engaged workforce.

How can companies improve their eNPS?

Companies improve their eNPS by:

  • Focus on employee engagement: Implement strategies to increase employee engagement, such as providing opportunities for professional development, fostering a positive work environment, and recognizing employee achievements.
  • Communicate effectively: Communicate openly and transparently with employees about company goals, decisions, and changes.
  • Gather employee feedback: Regularly gather feedback from employees through surveys, focus groups, and one-on-one meetings.
  • Take action on feedback: Address employee concerns and take action on feedback to demonstrate that their input is valued.
  • Recognize and reward employees: Recognize and reward employees for their contributions and achievements.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

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