People Analytics

Understanding employee experience, employee engagement, and eNPS

Written by

Rachel McQuigge

Employee experience matters more than ever. It is becoming increasingly difficult to retain talented employees. How can we make sense of the nebulous idea of employee experience? Here are some definitions to get everyone on the same page. 

Quick Definition of Employee Experience

Employee Experience captures the entirety of the relationship between employees and an organization, what people encounter and observe throughout their tenure.

Employee Engagement measures the degree to which employees invest their mental, emotional, and behavioral energies toward positive organizational outcomes.

So what exactly is the difference? Employee experience is the overarching concept of an employee's experience in a workplace, whereas employee engagement directly informs whether people are willing to invest in this experience. It answers how ready employees are to invest their time, energy, and intellect in any organization.

TL; DR Employee engagement is a part of the constellation of feelings that results from employee experience.

Why does employee experience matter?

  • Helps with recruiting, retention, and the bottom line. 
  • Recruiting: resources like GlassDoor are increasingly popular, and bad reviews may chase away employees.
  • Retention: around 10% of people were leaving within six months of starting a new job. A good onboarding experience is critical. Training is often resource-intensive, expensive, and time-consuming.
  • Bottom line: when organizations get employee experience right, they can achieve twice the customer satisfaction and innovation and generate 25% higher profits than those that don’t
  • There is also a consistent correlation between employee experience and customer experience.

How do teams measure employee experience?

The short answer is employee engagement surveys. However, this quickly becomes a long answer. There are many theories on which questions to ask, how many, and how often. Then there is the process of deciding what to do with the data once it's gathered. Things get muddied quickly.

Through obscurity, eNPS rises to the top. One question (or two) offers an efficient and effective measure of employee engagement. 

What is Employee Net Promoter Score (eNPS)?

Employee Net Promoter Score (eNPS) is a scoring system designed to help employers measure employee satisfaction and loyalty within their organizations.

Employee Net Promoter Score (eNPS) is

  • a scoring system designed to help employers measure employee satisfaction and loyalty within their organizations
  • Based on a customer loyalty score, the Net Promoter Score system from Bain & Company, Satmetrix Systems, Inc., and Fred Reichheld gauges customer loyalty.

Some hesitations around eNPS are about its simplicity and how it may be inaccurate when used in smaller organizations. These hesitations highlight the importance of consistency in measuring and tracking comes in. For smaller organizations, setting personal benchmarks and using them to gauge reactions to changes within your organization is critical.

The strength of eNPS is in its simplicity. Often with employee satisfaction surveys, the results become cluttered with data. eNPS gives you one actionable data point. This data point makes it quick and efficient to analyze and address. 

How to measure eNPS?

Ask your employees two questions. Question 1: How likely it is they would recommend the organization as a place to work. (0-10) Question 2: Why did they give the score they did.

Promoter = Score 9-10

Promoters are highly satisfied and likely to recommend your organization as a place to work.

Passive/Neutral = Score 7-8

Passives are employees who are satisfied enough to be content but may not be entirely engaged.

Detractors = Score 6 or below

Detractors are unlikely to recommend their organization, which may indicate employee dissatisfaction.

(# of Promoters - # of Detractors) / # of Respondents = eNPS

An eNPS score can range from +100 (all promoters) to -100 (all detractors). An industry benchmark is that between 0 and 30 is a good eNPS. Anything above 30 is great. Anything below 0 indicates room for improvement. 

An effective eNPS survey will take steps to ensure anonymity among its respondents to guarantee honest feedback. It is inefficient to gather artificially inflated results. 

If your organization finds this to be an effective strategy, including an optional question asking how your company could increase the score given may provide insights on how to improve employee engagement levels. Another approach is to use eNPS in conjunction with sentiment analysis (or mood tracking). The mood analysis can provide a better understanding of how employees are feeling. 

What is a good eNPS score?

A rule of thumb is that an eNPS score between 10 and 30 is considered good, and anything above 50 is excellent. The most important thing is to benchmark your company's eNPS against historical scores and industry averages, if available.

According to the global benchmark data of more than 150,000 organizations surveyed by SurveyMonkey, the average for NPS (not eNPS) is 32, but this also varies across industries. A report created by relationwise indicates that the Top 10 companies for eNPS ranged from first place Hubspot, with an eNPS of 92, to Intuit in tenth place, with an eNPS of 59. 

How often do teams measure eNPS?

Ideally, eNPS is measured monthly. The key to this frequency is that it is not too often that employees stop responding, as it is only one question (or two) once per month. Yet, it is frequent enough to capture changes and adjust as needed. How are your employees reacting to new HR policies, hires, or CEO announcements? 

Measuring eNPS quarterly or yearly makes it more challenging to determine why scores increase or decrease. 

However, as a company, you must self-reflect. Can you analyze and react to the data frequently enough? How likely are your recipients to respond? If there is not enough bandwidth to commit to gathering and reacting to this data monthly, a less frequent timeline may be a better fit for your organization. 

What are the tools for measuring eNPS?

A wealth of tools for measuring eNPS exist. If you are feeling crafty, a DIY version using google forms or survey monkey will work. However, it would be a labor of love. Someone in your organization would need to remember to send the survey out, collect, and analyze the data each month. It can be time-consuming.

Our eNPS tool allows you to gain insights about your company with ease. Employee engagement tools often create paralysis through analysis. We provide understandable and actionable insights that will help your managers make decisions.

Are You Using eNPS to measure your employee experience?

To summarize, employee experience matters, employee engagement is an effective measure of this, and eNPS is a powerful tool to understand both. This blog post is just the beginning of understanding the overarching concept of the employee experience. There is much more to learn, but eNPS is a fantastic starting point that offers valuable insight into employee engagement.

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