Employee Net Promoter Score (ENPS) | Meaning

What is Employee Net Promoter Score (ENPS)?

Employee Net Promoter Score (eNPS) measures an employee’s satisfaction and helps establish loyalty within the organization. Companies use eNPS initially to identify and analyze their work environment and to process and understand employees’ experiences.

The term “promoter” plays a distinctive role in this context. By definition, a promoter advertises something beneficial to human well-being. In the context of eNPS, promoters are employees who are incredibly happy, supportive, and extremely satisfied with their workplace. As a result, these highly satisfied employees recommend their company to others, highlighting its good working environment and other superior facilities.

Use case of Employee Net Promoter Score

Let’s discuss the primary reason behind using eNPS in companies. Initially, companies use eNPS to identify which employees are more likely to promote their establishment to others and encourage them to apply. Thus, companies can understand and leverage the positive experiences of their most satisfied employees to enhance their reputation and attract new talent.

The eNPS consists of the following question:

“On a scale of zero to ten, how likely are you to recommend working for our company?”

After employees provide their ratings, HR categorizes them into three groups:

  • Promoters (scores 9-10)
  • Passives (scores 7-8)
  • Detractors (scores 0-6)
    The formula for calculating eNPS is:

(Number of Promoters−Number of Detractors)/Number of Respondents×100

An eNPS score between 10 and 20 is considered reasonable, 20 to 30 is good, and 40 to 50 is outstanding.

For example, if 60% of employees score 9-10 (promoters), 20% score 7-8 (passives), and 20% score 0-6 (detractors), the overall eNPS score is calculated as follows:

60−20=40

This score places the company at the low end of the outstanding eNPS range

Origin

This whole concept of eNPS was actually constructed from the Net Promoter Score. The Net Promoter Score is basically a metric scale that is used in measuring things like the loyalty of the customer or the consumer. This entire Net Promoter Score was kick-started by the company Bain & Company and Fred Reichheld with the intention to gain customer feedback on their products and measure their loyalty to the brand as well.  

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