The success of an organization depends on its ability to support, motivate, and value its workforce. This is why understanding and prioritizing the experience of your team members is critical. Employee satisfaction doesn’t just impact the employees themselves; it has a direct influence on productivity, retention rates, innovation, customer satisfaction and so much more. One vital metric that helps gauge employee satisfaction and engagement is the Employee Net Promoter Score. In this blog, we’ll delve into what eNPS is, why it’s important, and how you can start tracking it within your organization today.

Understanding the Employee Net Promoter Score

The Employee Net Promoter Score, often referred to as eNPS, is a metric used to measure employee loyalty, satisfaction, and willingness to promote their workplace to others. The eNPS is an extremely effective way to understand how your teams feel toward your organization. Most companies gather this information in a survey format to encourage honesty and ensure employee anonymity. The eNPS is incredibly important to track because it guides your organization to learn how to better serve your people. For example, if your first eNPS is low, you can start to ask better questions about the kind of workplace your people WOULD recommend. Remember, if you’re going to ask for feedback be prepared for constructive criticism. You must have an open mind and willingness to grow if you are going to implement an eNPS survey.

Why eNPS Matters

1. Employee Retention

According to Gallup, organizations with engaged employees experience 59% less turnover. Moreover, eNPS provides insights into how satisfied your employees are, helping you identify potential issues before they lead to attrition. Higher eNPS scores often correlate with lower turnover rates, saving your company time and resources in recruiting and training new employees. Turnover is a cost that businesses will never be able to afford. If your turnover rates aren’t where you want them, read our blog about how to reduce turnover through culture strategy.

2. Increased Productivity

Engaged employees are predictively more productive. A study by Forbes reveals that companies with high employee engagement are 21% more profitable. When your teams feel that you’re willing to go the extra mile for their satisfaction, they will be more willing to go the extra mile for you in return.

3. Positive Workplace Culture

An organization with a high eNPS typically fosters a positive workplace culture. A positive culture leads to motivated and inspired employees who are more likely to take initiative, collaborate effectively, and contribute to the company’s success. A positive workplace is an attractive environment for top talent. If you’re looking to grow and build a successful team, start with your culture.

How to Start Tracking eNPS

1. Survey Your Employees

To calculate eNPS, start by surveying your employees using a simple, anonymous questionnaire. Use a free tool like Google Forms or Survey Monkey. Ask a single, key question: “On a scale of 0-10, how likely are you to recommend our company as a great place to work?”. Based on their responses, categorize employees into three groups:

• Promoters (Scores 9-10): These employees are highly satisfied and likely to promote your organization.
• Passives (Scores 7-8): These employees are generally satisfied but may not actively promote your company.
• Detractors (Scores 0-6): These employees are dissatisfied and may even detract others from joining your organization.

2. Calculate eNPS

Subtract the percentage of detractors from the percentage of promoters to determine your eNPS score. The formula is simple:

3. Act on Feedback

Once you have your eNPS score, it’s crucial to act on the feedback received. Address the concerns of detractors, and find ways to further engage your passive employees. Continuously monitor and track changes in your eNPS score to measure the impact of your efforts. One of the best ways to encourage more feedback is to talk about the feedback you have received openly to the company. For example, if your teams are telling you that they feel fairness is an issue within your organization, make sure you tell them what you’re going to do about it. Take the time in your next All Hands meeting to address the feedback and share your plan of action. This will empower your team members and show them that their feedback can make change.

Conclusion

Today, attracting and retaining top talent is more challenging than ever. You can prepare your organization for resilience and longevity by starting to prioritize your employees’ experience. The Employee Net Promoter Score (eNPS) is a valuable tool for organizations to gauge how their people feel. If you want to go a step beyond an eNPS, MindGoal’s customizable Culture Scorecard will take your organization to the next level. Track your team’s behaviors and assess their feedback, helping you create a workplace where everyone feels connected, accountable, and inspired by the values we share.

Ready to take your business to the next level? Book a demo with MindGoal here.