What is eNPS?

What is eNPS?

Publish Date: 2021-06-07

Author: Alec Middleton

If you’ve been around in business for a while, you’re probably already familiar with the NPS system. NPS - or Net Promoter Score - is a reliable way of measuring customer satisfaction, offering insight into how likely your customers are to recommend your products or services. 

More recently however, the traditional NPS model has been redesigned to evaluate employee satisfaction. Known as eNPS, it is now a very popular system in the world of HR. But what is eNPS? And how does it benefit businesses? 


The History of NPS

Before we take a look at what eNPS is, it’s worthwhile having a bit of background knowledge about NPS - the ‘gold standard’ customer experience measurement. Developed by Bain and Company in the early 2000s, the Net Promoter System is used by millions of businesses today to gauge how satisfied their customers really are. 


How is NPS Measured?

NPS is measured by asking customers a simple question - “How likely are you to recommend [Us/ Our Products / Our Services] to a friend or colleague?”

Those being surveyed must provide a rating between 0 (not at all likely) and 10 (extremely likely).

The respondents answers are then translated into an NPS score, which is broken down into 3 categories: 

  • Promoters - these are the respondents who score your company, product or service 9 or more. They are the most loyal customers, and will happily ‘promote’ your business for you. 
  • Passives - those who respond with 7 or 8. These people are content with your offering, but aren’t going to shout your praises from the rooftops. 
  • Detractors - these are the dissatisfied customers, who respond with a score of 6 or below. They’re unlikely to do business with you again, and may discourage others from doing so. 

To calculate your company’s final NPS score, you must subtract the percentage of detractors from the percentage of promoters. 

For example, if 60% of respondents are promoters, and 20% are detractors, your Net Promoter Score is 40. 


How Does a Business Use NPS to Their Advantage?

Having your Net Promoter Score written out in black and white offers many advantages. It allows you to understand the sustainability of your practices, what key issues are letting your business down, and how much you should be investing into your customer service. 

Because NPS surveys are either sent out on a regular basis, or after customer’s interaction with your company, it offers real-time insights into what you could improve. This makes it a great way of creating a benchmark for a company’s success. 

So where does eNPS come into all of this?


What is eNPS?

eNPS takes the principles of the Net Promoter System, and uses them to measure employee satisfaction and loyalty. When used in addition to employee engagement surveys, the Employee Net Promoter System can help reduce staff turnover, increase employee satisfaction, and save businesses a considerable amount of money in recruitment costs. Moreover, it ensures that people in your business can provide feedback and contribute to the overall vision.

Just like traditional NPS, eNPS involves employees being asked one, or a series of questions about how likely they are to recommend their workplace to friends and family. 


What Are the Benefits of eNPS?

Much like traditional NPS, eNPS offers businesses a chance to gain instant, black and white insight into how their employees are feeling. When used effectively i.e. with a series of follow-up questions, the eNPS system offers a quick way for employees to regularly give valuable feedback.

Here are some of the major benefits of eNPS: 

  • It’s quick, simple and straightforward, making it attractive to employers and employees alike 
  • It delivers higher response rates than longer, more time-consuming surveys
  • It’s a simple metric to use as a benchmark for your company
  • Regular eNPS surveys makes your employees feel like you value their feedback
  • eNPS is anonymous and unbiased, making it an excellent measurement tool for employee engagement
  • It’s cost-effective, allowing you to check in with your employees with a simple text
  • It typically saves companies money on administrative and recruitment costs
  • Companies with good eNPS scores tend to attract the top-performing workers in their sector


What is Considered a Good eNPS?

While there’s no definitive answer of what is a ‘good’ or ‘bad’ eNPS, a threshold of between 10-30 is the satisfactory benchmark most companies will aim for. And while these numbers may seem quite low, it’s important to remember that eNPS can range from anywhere between -100 and 100. 


How to Use eNPS Effectively

The simplicity of eNPS is what makes it so great, but it must be used correctly in order to be effective. Here are our top tips for implementing the eNPS system effectively. 

1. Use Employee Engagement Software

Studies show that people these days are 134% more likely to reply to a text than an email. This means that the most effective way to implement the eNPS system is via a popular messaging platform, like Whatsapp.

Outsourcing your eNPS to trusted HR professionals and offering anonymity in the process will also guarantee impartiality in respondents, and will likely be more cost-effective than doing it in-house. 

2. Listen to Your Employee Feedback

One of the biggest pitfalls for companies is that they don’t act on the feedback provided by respondents on their eNPS surveys.

Staff feedback is so integral to the health of your company, and if your workers see a positive change following the survey, they’ll reward you with stronger loyalty and higher engagement rates. 

3. Always Expand On Your Questions

What good is asking your employees for ratings if you don’t find out the rationale behind their answers? Expanding on responses is key to ensuring you get the information you need to make improvements within your company. 

This is another reason to outsource your eNPS surveys to HR professionals, and it will guarantee you receive valuable insights that are worth every penny. 


eNPS is a cost-effective and easy-to-implement tool that every employer should be using to increase employee engagement. If you’re interested in finding out more about how we can help you increase employee retention and boost workplace morale using eNPS contact Victoria or Alec.

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