We recently covered the topic of Net Promoter Score (NPS) as it applies to customer loyalty and business growth. Today, we set out to discuss a similar metric in the competitive world of recruiting: The Employee Net Promoter Score.
If you have yet to use Employee NPS, then today’s blog post is for you. We’ll discuss what this metric is, and explore how you can use it to find and retain top talent. Let’s get into it!
What is Employee Net Promoter Score?
Just as the Net Promoter Score measures customer loyalty, the Employee Net Promoter Score measures employee loyalty. The metric is based on how employees answer one question: “On a scale of 0 to 10, how likely is it that you would recommend this company as a place to work?” Depending on each employee’s answer, they will fall into one of the following three categories:
- Promoters (score 9-10): These employees are enthusiastic about their work and place of employment. And, they are likely to recommend your organization as a good place to work.
- Passives (score 7-8): These employees are content with their job, but aren’t as secure when it comes to loyalty. While they may recommend your company as a good place to work, they may also leave if they get another, more lucrative offer.
- Detractors (score 0-6): Detractors are typically unhappy employees. Not only are detractors likely to speak negatively about your company and look for an opportunity to leave, but they also have the potential to convince other employees to leave as well.
The Employee NPS is calculated the same way as the Net Promoter Score. Simply subtract the percentage of detractors from the percentage of promoters. This leaves you a number between -100 and +100, with a score above 0 indicating a positive employee experience.
Here’s an example: An Employee NPS survey shows 30% of your employees are promoters and 10% are detractors. Your score is 20 (30% – 10% = 20).
How to Use Employee NPS to Attract and Keep Top Talent
Employee NPS is more than a fast way to get an overview of employee engagement. Forward-thinking employers use this metric to strategically improve their recruiting processes—and ultimately attract and retain top talent. Let’s look at three ways to leverage Employee NPS as part of your recruiting strategy:
1. Turn promoters into employee brand ambassadors.
There is nothing better than word-of-mouth marketing to sell an open position to a potential job candidate. But this presents a challenge to employers: How do you find employees who are willing to recommend your workplace to their personal networks?
Enter, Employee NPS. By sending an Employee NPS survey to all employees, you can quickly identify engaged employees within your ranks who will gladly spread your employer brand message on social media, job boards, and in person. Remember, in order for this to work, you must collect participants’ names and contact information—so survey results can’t be anonymous.
Once survey results are in, send a follow-up email to employees who received a score of 9 or 10 and ask if they’d be interested in joining an employee ambassador program. Now, if you already have a brand ambassador program in place, you’re in luck! Your newly identified promotors are most likely to be engaged, active members.
But, if you don’t have an established brand ambassador program, check out the following content:
- The Definitive Guide to B2B Employee Engagement and Brand Awareness
- 5 Ways to Build a Better Employer Brand
- How to Develop a Corporate Social Media Policy
Employee NPS makes it much easier to identify employees who will be most willing to spread brand messages to their personal networks. As a result, your branded content is likely to reach more potential job candidates.
2. Leverage NPS Employee score to reduce employee turnover.
Recruiting top talent is only half the battle—once a qualified candidate accepts a position within your organization, you now have to worry about keeping them happy and engaged. In fact, around 42 million U.S. employees, or more than one in four workers, will leave their jobs this year to work for another company (source).
Here are a few ways we recommend using Employee NPS to reduce employee turnover:
Follow up with detractors:
Detractors are the segment of your organization that is most likely to leave your company. To prevent this, we recommend following up with employees you’ve identified as detractors, so you can understand their low score and demonstrate a genuine effort to improve their happiness at work.
Look for trends:
Measure employee loyalty by department, demographics, and tenure. By doing so, you will be more likely to spot issues that would otherwise go unseen. Let’s look at an example: After segmenting Employee NPS by department and then by manager, you notice a significant percentage of detractors not only work within the same department but also under the same manager. After doing a little more investigating, you are able to identify several problematic management tactics and retrain the manager in question to better lead his team.
Make survey results public:
Once you receive your NPS survey results, it’s important to analyze responses, draw conclusions, and communicate both the results and your analysis to the rest of your staff. Doing so will demonstrate your commitment to employee satisfaction and will potentially alleviate some of the bigger issues plaguing employees who fall within the detractor category.
Your Employee NPS provides a wealth of knowledge—so don’t limit yourself to the three examples listed above. Get creative and explore the different ways in which you can use the information gleaned from Employee NPS survey results to keep your staff engaged and happy.
3. Use your Employee NPS to measure the impact of workplace changes.
When an employer invests in their staff, it can pay off. But, how can you be sure if the changes you implement are actually improving employee satisfaction? The answer, once again, is NPS. Let’s look at an example to better illustrate this point. Say you measure Employee NPS in quarter one and conclude that many of your staff members feel their concerns aren’t being heard or taken seriously.
Ultimately, this leads to a much lower Employee NPS than you had hoped. To rectify the issues you’ve identified, you implement an employee town hall—essentially an open forum for members of your organization to voice concerns and to make your executive team more accessible.
In quarter two, you reassess Employee NPS and find that since holding regular town hall meetings, your score has increased significantly. After conducting follow up conversations, far fewer employees express the same concerns as were expressed in your initial NPS survey.
As this example illustrates, Employee NPS not only helps employers and HR professionals recruit and retain top talent—it also provides them with actionable benchmarks to improve the general employee satisfaction at their company. Just remember to conduct surveys regularly, and strategically implement changes so you know exactly which variables contribute to NPS improvements.
Using Net Promoter Score in Human Resources
Use NPS to gather ongoing feedback and improve both recruitment and HR processes. But, don’t rely on NPS exclusively. Be sure to use a variety of metrics and resources to get a well-rounded, comprehensive look at employee satisfaction. If you’re not sure where to start, check out these resources next:
- 8 Important Recruiting Metrics for the Modern Staffer
- Source of Hire: The Key to Successful Recruiting
- 4 Ways to Improve Your Candidate Response Rate