In this article, we will cover:
- What is eNPS
- How is eNPS calculated
- How to View the eNPS
- eNPS History
- What is considered a good eNPS score
What is eNPS?
The employee Net Promoter Score (eNPS) is a simple way to measure employee loyalty and engagement. It's based on the Net Promoter Score (NPS), a metric developed by Fred Reichheld of Bain & Company in 2003, and it's since been widely used by companies to evaluate customer satisfaction with their products and services. It can help you gauge whether or not people would recommend your company when compared with other organizations.
How is eNPS calculated?
eNPS is calculated by asking employees the following question:
"On a scale of 0-10, how likely are you to recommend our company as a place to work?"
- Scores 9-10 are considered Promoters
- Scores 7-8 are considered Passive
- Scores 0-6 are considered Detractors
The score is then calculated by subtracting the percentage of detractors from the percentage of promoters.
For example, if 50% of employees are promoters, 20% are detractors, and 30% are passive, the eNPS would be 50% - 20% = 30.
Quokka HR will send the eNPS question to every employee as part of their onboarding process. The employees will be asked the question again every two months. The most recent response to the question within a 60-day period will be used to calculate the latest eNPS score. Responses that are more than 60 days old will not be taken into account, but it will still be aggregated and shown in the history. The variation in scores from the previous week (7 days) is also displayed. This question can only be answered once in a 60-day period.
Note: If an employee chooses to skip or not answer the eNPS question, they won't be included in the calculation of the score. A company’s score can range from -100 to +100. The score displayed will always include the latest data submitted by the user.
How to View the eNPS feature
You can see the eNPS score in the Engagement Report. If you click the "View Detail", it also shows how the scores are distributed so you can better understand how the calculation was made.
Note: The Engagement score is a 60-day rolling average of all the different metrics that are measured by Quokka HR. However, the eNPS score is only based on one question. Thus it's only one aspect of the overall Engagement. It's not unusual to see a high eNPS score and a low Engagement score, or vice versa.
eNPS History
You can see how your eNPS score has changed over time and its historical data trend based on the time series. You can also hover over any point on the graphs to see the score at that time.
What is considered a good eNPS score?
There's no definitive answer to this question, since it will vary depending on your industry and company size. However, a good eNPS score is usually considered to be anything > 0%.
For example, if you have an eNPS of 10%, that means that for every detractor, you have 9 promoters. This is a good ratio, and it means that your employees are generally happy with their job and the company.
If you have an eNPS of -5%, that means you have more detractors than promoters. This is not a good ratio, and it indicates that there may be issues with employee engagement at your company that require management attention.
As a reference, the below chart is how we label the eNPS score ranking.
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