eNPS: Measuring Your Company’s Health

eNPS: Measuring Your Company’s Health

The human body, like an organization, is capable of amazing things.  We run, dance, play sports and do other various activities.  However, if not taken care of properly, our capabilities become limited because of unhealthy habits.

Similar to the human body, companies can suffer from health issues.  Various negative outcomes—including high turnover and the flattening or declining of growth rates—result from an unhealthy company.  While we are able to visit the doctor to diagnose possible health problems, how do we assess a company’s health?

This is where the Employee Net Promoter Score (eNPS) comes into play.

 What is eNPS?

eNPS is a method used to evaluate the satisfaction and loyalty of employees.  Through surveys, eNPS examines how likely an employee is to recommend the organization as a place to work.  Based on the results of the eNPS, companies are able to assess the health of their organization and determine improvement areas, which benefit employees, customers and the company as a whole.

How is eNPS determined?

eNPS centers around the question:  “On a scale of 0 to 10, how likely are you to recommend COMPANY X to your family and colleagues as a place to work?”.  Answers are categorized as promoters, passives, or detractors.

Promoters – Those who answer within the 9 – 10 range are promoters. Promoters are individuals who actively recommend and tell people about the company.

Passives – Those who fall within the 7 – 8 range are passives. They are the ones who are content or neutral, but do not actively engage in promoting the company.

Detractors  Those who fall within the 0 – 6 range are detractors. Detractors are employees who would not recommend the company as a place to work.

These results are plugged into the equation:  Promoters – Detractors = eNPS.

Scores can range anywhere between -100 to 100 for various departments.  Together, these scores determine the overall health of the company.  Scores falling below 0 indicate significant areas of improvement, while scores above 50 illustrate areas of excellence that should be maintained.

Higher scores have been associated with lower turnover rates and increase in growth and profitability within companies.  The idea is that happy employees lead to a better customer experience.  This has shown to increase Net Promoter Score (NPS)—or customer satisfaction and loyalty—and thus, results in the company’s growth.

It is important to understand that eNPS, like an annual physical checkup, should be conducted on a regular basis, and the results should be tracked.  These results will assist in analyzing the company’s health and growth.  “The Benchmarking Dilemma: Internal vs External” is an excellent post regarding ways of using eNPS.

Patterns of a healthy company

So, once you receive your eNPS, what do you do?  The goal of eNPS is to help companies recognize and improve their company culture.  As mentioned earlier, benchmarking is a way of doing this.  Benchmarking is a kind of “medical history” for the company, and it can be used as a way to analyze growth and direction.  This also allows for patterns to be recognized.

Through various analyses of companies, we’ve come to discover some qualities that high scoring companies hold: inspiration, connection and trust.

Inspire employees. Giving employees a reason to work is an effective way to improve eNPS.  People are looking for meaning in their lives, and to provide them with the opportunity to change and strive for more encourages them to engage with the company.  A good way to start is to begin a conversation with employees and develop from there.  Create a list.  Build a focus.  Strive for that goal.

Connect employees to customer impact. Employees want to know how they are performing.  Many employees want to know that they are making an impact on the customers.  Because of this, it’s important that companies are able to provide channels that allows for the employee-customer connection to happen.  The usage and feedback from social media, nowadays, is a tool that helps to make this happen.

Build trust with employees.  Like any kind of relationship, trust is key.  Employees who have trust in a leader and/or company are more willing to recommend and engage it.  It is important that leaders have open communication with employees, so needs and issues are addressed.  Accountability also has a significant impact on trust, and this applies to all individuals.

Now here’s the important question:  How do I get my eNPS?  This is where illumyx can help.  illumyx uses eNPS, and helps to identify areas of improvements within the company.  We work beside you to build and execute an effective action plan that will create a better experience for not only customers, but for employees.

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