Assessing employee loyalty through the eNPS index

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maksudasm
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Joined: Thu Jan 02, 2025 7:11 am

Assessing employee loyalty through the eNPS index

Post by maksudasm »

The eNPS (employee Net Promoter Score) index is designed specifically to assess loyalty levels. It allows you to determine whether the staff is satisfied with the organization of work in the organization, whether employees plan to develop with the company or whether they are dissatisfied with the actions of the management and the atmosphere within the team, so they are considering other employment options.

Many companies have already implemented the eNPS index as a key performance indicator of their activities and a parameter that helps to assess the loyalty of the organization's employees.

To determine the value of the parameter, a survey is organized on two questions:

On a scale of 1 to 10, how likely are you to recommend your friends or acquaintances to work for our company?

What influenced your find investor through investor database decision?

Based on the results of the survey, the company's personnel are divided into three groups:

Promoters are employees who are highly likely to recommend the company to their friends (9 or 10 points). This indicates a high degree of their loyalty.

Neutrals are employees who rated their willingness to invite friends to your organization at 7 and 8 points. This group includes passive team members who are ready to change employers if they are offered more favorable working conditions.

Critics are employees who limited their ratings to 1 to 6. They are dissatisfied with the management's actions, relationships with colleagues, and are not ready to recommend your company as a good place to work.

The eNPS indicator is the ratio between the number of Detractors and Promoters. The predominance of the latter indicates that the management has chosen the right tone in relations with the staff and has organized the work competently.

The eNPS index is calculated using the following formula:

(Number of Promoters – Number of Detractors) / Total Number of Respondents * 100

For example, a survey was conducted among 100 employees:

10 responses had values ​​from 0 to 6 (Critics);

in 20 – scores 7 and 8 were indicated (Neutrals);

70 responses gave ratings of 9 and 10 (Promoters).

The percentages of the groups are 10, 20 and 70% respectively.

Calculation: Subtract 10% (Critics) from 70% (Promoters), and you get 60. An index with a plus sign indicates that loyal employees outnumber dissatisfied ones. The more of them there are, the lower the turnover rate, which means the company spends less on finding and training new employees.

A zero or negative index value should be perceived by the company's management as an alarm signal. This is a clear sign of possible departure of active employees and subsequent problems with finding new team members, because the feedback about the organization from former employees will not be the best.

The eNPS index is useful in terms of an objective assessment of the situation in the company. A large number of loyal employees indicates readiness for f
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