December 2, 2020
Performance Management 09 September 2020
How to Use ENPS to Boost Employee Loyalty
Guest Poster

In 2011 when Zoom Video Communications was launched, hardly anyone ever thought that this brand would grow out to be one of the successful brands in the field of video conferencing.  With innovation at its heart, Zoom has been efficiently overpowering its competitors and has gained a net worth of about $79.63B since.

Mr. Eric Yuan, the CEO of Zoom, attributes this success to their positive employee experience and strong employee loyalty. It's the concrete trust and mutual respect between Zoom and its employees that has enabled the company to achieve such a market position. In an interview with GlassDoor, Eric said,

I asked myself a question: “What kind of company do I want to work for?” The number one thing I wanted to say, and I want our employees to say, is that they are happy. I need to make sure I’m happy, and that my employees are happy. So that’s why our company culture is to deliver happiness. It’s personal to our company’s values.

Like Zoom, many leading brands like Apple, Google, and Netflix have been maintaining a sharp focus in encouraging employee loyalty. This is because they understand that loyal employees are one of the greatest assets of any organization. A brand with loyal employees enjoys benefits such as a steady growth rate, increased revenue, and being able to attract promising talent. On the contrary, brands with poor work culture often suffer due to unhappy employees. 

It's simple! Happy employees create happy customers.

Highlighting the perils of poor work culture, a West Monroe report states that 

82% of employees are loyal to their current employers but if given a chance, 59% of employees would leave for a better job offer. 

Thus, to avoid such situations, brands like Apple Inc and Netflix have been going the extra mile to implement positive employee experience strategies. Be it employing team performance rewards or be it framing of liberal work policies for their employees; these brands are leaving no stone unturned for optimizing their employee engagement.   

But, now the question is how are these brands measuring the success of their engagement strategies? What’s the metric that is being used? 

Well, the answer is simple, Employee Net Promoter Score (ENPS)! 


What is ENPS?

Revenue generation is the primary motive of every organization. While customer satisfaction helps a brand to achieve this motive, it’s the employee satisfaction and engagement that delivers customer satisfaction. Employee experience forms an integral part of a brand’s success strategy. 

Brands with highly engaged employees are 21% more profitable as compared to their competitors with disengaged work cultures. 

To sustain their progress, brands need to have a quantifiable metric that monitors their employee experience. This is where ENPS comes into the picture. 

Being a quantitative metric, ENPS helps brands to measure their employee’s engagement and satisfaction level. Initially, it was rarely used by companies. But, over time, the importance of this metric has largely increased. Wondering why is it so important? Let’s examine.


Why is ENPS important for your Employee Experience?

1. Harboring employee loyalty: Your loyal employees are your brand advocates. By harboring employee loyalty, you increase your brand’s goodwill which helps to attract talent in the long run. 

2. Reducing churn rate: More than 80% of employees thriving in poor work culture, actively seek different job opportunities. The additional labor costs experienced due to this can have a strain on a company's finances. Alternatively, a brand can reduce this churn rate by using ENPS.

3. Identifying the detractors: Identifying the detractors makes it simpler for the brands to address its employee grievances. Such one-to-one problem-solving aids in changing the negative attitude of employees resulting in a higher employee retention rate for the brand.

4. Enhances the work culture: Employees love to work in a positive and engaging work culture. By decreasing the gap between an organization’s reality and an employee’s expectations, ENPS productively enhances the work culture. 

5. Drives Brand Revenue: A positive employee experience symbolizes employees who are happy and satisfied with their work. Such satisfaction motivates employees to engage with their customers on a higher and positive level which ultimately drives brand revenue.

Since now you have got a fair idea about ENPS’s importance, let’s check out how brands calculate their ENPS score.


How to Calculate ENPS?

Relatively easy to administer, ENPS is a single-question based process. It is undertaken by asking employees “How likely are they to recommend a particular company to their friend or colleagues?” 

The employees are supposed to answer this question in terms of a score. With 10 being the highest score on the scale and 1 being the lowest.

For the ease of calculation, the scores acquired are categorized into 3 groups, namely:

1. Promoter Employees: The employees who rate the companies between 9-10 are known as Promoter employees. Demonstrating loyalty, they are brand representatives who regard the company’s growth as their single most priority. 

2. Passive Employees: Employees who rate the company in a range of 6-8 fall under this category. With a neutral opinion, these employees may not think twice before switching their jobs. Alternatively, with proper engagement, passive employees can be converted into promoter employees. 

3. Detractor Employees: A score lower than 6 is accounted into a detractor/dissatisfied employee category. Responsible for a high churn rate, these employees can easily damage your goodwill by posting negative reviews on job rating websites. Hence, immediate actionable plans should be undertaken to retain these employees. 

Once the categories are formed, a formula is used to calculate the ENPS score which is:

% of Promoters - % of Detractors = ENPS score.

The score obtained ranges between a scale of -100 to 100. While a score of 50 is considered to be an excellent score; in reality, companies generally have a score between 10-30. However, a score below zero denotes a high level of dissatisfaction among the brand’s employees. 

Once the score is obtained, brands shift their focus to unhappy employees (detractors). They use a series of follow-up questions to figure out the reasons for an employee’s dissatisfaction. 

Here’s a list of potential follow-up questions that brands generally asked.

  • Are you proud to work in{company}?
  • Are you at your best in  {company}?
  • Would you recommend {company} as a great place to work?
  • Do you think of finding another job?
  • Do you think your potential is utilized at {company}?
  • Do you think {company} motivates you to perform better?
  • Does {company} make your job challenging yet rewarding?
  • Are you fully satisfied with my work profile in {company}?
  • Rate {company} for its work culture. 
  • Is working here mentally jarring?
  • Are you excited to work at {company} every single day?

Simultaneously, these brands also employ some strategies to improve their scores. Let’s have a look.


How to Improve the ENPS score?

1. Listening to Detractors: Your dissatisfied employees are the potential source of bridging the gaps in your employee experience. By listening and addressing their issues, your brand can regain its trust and reduce labor turnover.

2. Opting for a reputation check: Sites like glassdoor publish employee reviews about a brand’s work culture. By checking employee reviews about your brand can help you get accurate feedback on whether your brand’s work culture is positive or negative. 

3. Focussing on Work-Life Balance: Employees with good work-life balance are 10% more likely to stay with their organization. Therefore, by framing flexible work-life policies, brands can significantly increase their workforce retention rate with improved employee satisfaction. 

4. Work Appreciation: 44% of employees switch jobs due to lack of recognition and poor engagement. Thus, incorporating a practice appreciation can go a long way in building strong employee loyalty.


Conclusion

ENPS is a productive tool which if utilized periodically can be beneficial for a brand's progress. Brands like Apple (24) or Google (42) who are revered for their growth-oriented work cultures have achieved this goodwill after periodic implementation of ENPS.  

Thus, if you aspire to have an engaging work culture like these inspiring companies then you need to incorporate ENPS in your organization’s functioning. 

Also don’t just stop at measuring the scores. Improve your score by following it up with the above-mentioned strategies and soon you will start noticing the results. 

For more information on how ProSky can help improve your company's employee experience and culture, schedule a demo with one of our specialists:


Shradha is a natural-born connector and has been known for developing long-standing and effective business partnerships. In her role as a Human resource manager with Surveysensum, she has pioneered employee engagement initiatives with regular use of Employee Net Promoter Score metrics. She is fuelled by passion and genuine love for Human Resources and connecting with others. Her knowledge and determination to turn information into action & initiatives have contributed to her career.