Employee Net Promoter Scores – A KPI all SMEs should be tracking.
The importance of setting and tracking KPIs for SMEs cannot be overstated. KPIs serve as vital tools that help businesses measure their performance, identify strengths and weaknesses, and make data-driven decisions. One KPI that is often overlooked is Employee Net Promoter Scores…
In today’s competitive business environment, companies are increasingly recognising that their greatest asset is their people. Employee satisfaction, engagement, and loyalty are critical components of success. One effective way to gauge these elements is through the Employee Net Promoter Score (eNPS), a metric that offers valuable insights into employee sentiment. Here, we explore the importance of tracking eNPS and how it can benefit your business.
Understanding eNPS
Employee Net Promoter Score derives from the widely-used Net Promoter Score (NPS) that measures customer loyalty. eNPS assesses how likely employees are to recommend their workplace to others. Employees respond to a simple question: "On a scale of 0 to 10, how likely are you to recommend our company as a place to work?" Based on their responses, employees are categorised into:
Promoters (9-10): Highly satisfied and enthusiastic about recommending the company.
Passives (7-8): Satisfied but not enthusiastic enough to be promoters.
Detractors (0-6): Dissatisfied and unlikely to recommend the company.
The eNPS is calculated by subtracting the percentage of detractors from the percentage of promoters, resulting in a score that can range from -100 to +100.
An eNPS score above 0 is good, above 20 is great and above 50 is AMAZING. Anywhere above 80 is the top percentile and categorised as ‘world class’. However, a negative score indicates that there is potentially cause for concern and work that needs to be done.
To provide insight, the UK has an average of +11, which is categorised as ‘good’. As part of the FACT3 People service, we conduct annual Employee Engagement Surveys for our clients. Upon gathering their data, the average eNPS score for our People clients sits at an impressive +24 which is well above the UK average.
FACT3 scored +59
At FACT3, our eNPS sits at an impressive +59, which is a testament to the positive culture we have cultivated. While we are proud of this achievement, it also indicates areas where we can improve. We focus on key areas such as 'wriggle room,' a concept that provides our employees with the spare time to work on personal projects or engage in continuous professional development (CPD). This initiative not only enhances job satisfaction but also promotes personal and professional growth, driving overall success.
Why Tracking eNPS is Essential.
Enhancing Employee Engagement
Employee engagement is crucial for productivity and growth. An engaged workforce is more likely to be motivated, committed, and aligned with your company’s goals. Tracking eNPS provides a clear indicator of engagement levels, helping management to identify and address issues that may be hindering employee motivation and involvement.
Reducing Turnover and Improving Retention
High turnover rates can be costly and disruptive. A low eNPS can serve as an early warning system for potential retention issues. By regularly monitoring eNPS, you can identify dissatisfaction and take proactive measures to improve your work environment, thereby reducing turnover and retaining valuable talent.
Cultivating a Positive Workplace Culture
A positive workplace culture is essential for attracting and retaining top talent. eNPS offers insights into the health of your company culture. A high eNPS indicates a supportive and satisfying work environment, while a low score can highlight areas needing cultural improvements. By addressing these areas, companies can foster a more positive and inclusive culture.
Strengthening Employer Branding
In the age of social media and online reviews, your reputation as an employer is more visible than ever. A high eNPS can significantly enhance your employer brand, making you more attractive to potential candidates. Conversely, a low eNPS can signal potential issues to job seekers.
Driving Continuous Improvement
Regular eNPS surveys help identify specific areas where employees are dissatisfied. This detailed feedback allows you to make targeted improvements, whether in management practices, workplace conditions, or policies. Continuous tracking ensures that these improvements are effective and sustained.
Supporting Strategic Decision-Making
The data provides your leadership team with clear, quantifiable insights into employee sentiment. These insights are invaluable for making informed strategic decisions regarding HR policies, management practices, and employee development programmes. By aligning these decisions with employee feedback, you can create a more supportive and effective work environment.
Improving Customer Satisfaction
There is a strong link between employee satisfaction and customer satisfaction. Happy employees are more likely to provide better customer service, leading to improved customer experiences and loyalty.
Monitoring Trends and Benchmarking
Tracking eNPS over time allows you to monitor trends and measure the impact of changes; it also enables benchmarking against industry standards and competitors. This continuous monitoring helps you stay competitive and shows whether or not you are moving in the right direction.
Conclusion
Tracking eNPS is not just about measuring satisfaction; it’s about understanding and improving the overall employee experience. By regularly monitoring it, you can enhance engagement, reduce turnover, cultivate a positive culture, strengthen employer branding, and drive continuous improvement. In doing so, you create a more motivated, productive, and loyal workforce, which ultimately contributes to the company’s long-term success.