Employee Net Promoter Score (eNPS) Explained: Your Go-To Guide

Every company dreams of having an army of employees who rave about their workplace. Imagine your people enthusiastically recommending your company to their friends, former colleagues, or LinkedIn connections. That’s exactly what employee net promoter score (eNPS) measures. 

This guide explains eNPS in more detail, including its benefits, how to measure it, and what to do with the results. 

What is eNPS?

Employee net promoter score, or eNPS, is a metric that describes how likely employees are to recommend their employer as a fantastic place to work. It’s based on the Net Promoter Score (NPS), traditionally used to gauge customer satisfaction and loyalty. 

Just as businesses want their customers to spread the word about their company brand, they also want their workforce to wax lyrical about their employer brand. Applying the NPS concept internally allows organizations to assess employee sentiment and loyalty in a simple yet powerful way.

How eNPS works

The eNPS survey asks employees a single question:

“On a scale from 0 to 10, how likely are you to recommend our company as a great place to work?”

Based on their responses, employees are categorized into three groups:

• Promoters (who answer with a score of 9 or 10): Enthusiastic employees who love their workplace and would recommend it to others
• Passives (scores of 7 or 8): Neutral employees who are satisfied but not particularly engaged
• Detractors (scores of 0 to 6): Unhappy employees who may speak negatively about the company

eNPS vs NPS: 3 Key differences

The NPS metric was developed in 2003 by consultants Bain and Company and is widely acknowledged as the gold standard of customer loyalty and satisfaction. Both eNPS and NPS are an important way to view a company’s holistic health using a simple promoter-detractor scale, but they share key differences: 

• Who it measures: NPS focuses on customers and how likely they are to recommend a company’s products or services to others. eNPS evaluates employees to gauge internal workplace sentiment. 
• Business impact: NPS’s customer advocacy findings relate directly to business profitability and growth. eNPS provides insights into employee engagement so leaders can create a thriving workplace culture. 
• Follow-up: Customer NPS results drive customer experience improvements so companies can refine their offerings based on feedback. eNPS results shape HR and leadership decisions, influencing initiatives such as benefits enhancements, leadership training, diversity and inclusion efforts, and employee well-being programs.

Why is eNPS important?

There are plenty of metrics for companies to track, but here’s why eNPS should be on your radar: 

1. It predicts employee retention and engagement 

Remember: We’re looking for high eNPS scores of at least 7 or more, and preferably 9 and 10. When companies hit this mark, it’s a great marker of their ability to retain and engage their employees. But if they have too many workers who fall into the detractor category (scoring 6 or less,) this is a clear indicator that disengagement has taken root. 

2. It provides actionable insights with minimal effort 

Long-form employee engagement surveys can be time-consuming and cumbersome, but eNPS is a lightweight way to gauge employee sentiment through quick feedback. As it involves just one core question, it minimizes survey fatigue while still providing valuable insights.

3. It improves employer branding and recruitment 

Companies with a strong eNPS hint at a positive workplace culture that makes it easier to attract and retain high-caliber candidates. While eNPS scores aren’t typically in the public domain, those with impressive figures may choose to publish theirs as part of their talent acquisition strategy. 

4. It enhances leadership and workplace initiatives 

eNPS scores shine a spotlight on leadership effectiveness and workplace policies. If scores drop after a significant organizational change, such as restructuring or policy shifts, leadership can step in and address concerns. Conversely, rising eNPS scores validate that HR and leadership strategies are working.

5. It encourages continuous feedback and a listening culture

eNPS surveys are fast and easy to analyze, so you should collect this data regularly as part of an open feedback culture where employees feel heard. Companies willing to act on their eNPS scores demonstrate their commitment to continuous improvement, leading to higher morale and stronger workplace engagement.

How to measure eNPS effectively

A well-structured eNPS process gives HR and leadership teams clear insights into employee sentiment and provides a starting point for improving your workplace. 

5 steps to conduct an eNPS survey 

To gather accurate and insightful eNPS data, follow these five key steps:

1. Choose the right survey tool 

The best survey tool should be easy to access and allow for anonymous responses. You might choose an HR platform, an engagement survey tool, or a simple Google Form.

2. Craft a clear and engaging invitation 

eNPS results are only useful when your employees are willing to answer your survey. Encourage this with a strong eNPS invitation that outlines what you’re trying to achieve. This should: 

• Explain why their feedback matters
• Assure them that their responses are confidential
• Keep things brief to prevent survey fatigu

Example:

“Your valuable feedback helps us improve our workplace. This quick survey is completely anonymous and will take less than a minute to complete.”

3. Ensure anonymity to encourage honest responses

An anonymous survey ensures higher participation rates and more genuine insights. Why? It’s human nature. Employees may hesitate to provide truthful feedback if they worry about being identified or fear repercussions based on the score they provide. 

4. Set a deadline and follow up with reminders 

Your employees are busy, and filling in yet another company form may not be their top priority. Get around this by setting a reasonable deadline (e.g., one to two weeks) and then send polite reminders to encourage participation.

5. Ask an open-ended follow-up question

The eNPS question provides quantifiable data, but it doesn’t explain the “why” behind employees’ responses. Adding an optional open-ended question like “What’s the primary reason for your score?” gives HR and leadership valuable context to interpret the results. But don’t go overboard here and make it into a list. Short and sweet is the motto. 

How to calculate your eNPS

Once you’ve collected your responses, it’s straightforward to calculate eNPS using this formula: eNPS = (% Promoters) minus (% Detractors)

• Promoters = Employees who are highly satisfied and engaged
• Passives = Employees who are neutral. They don’t negatively impact the score
• Detractors = Employees who are dissatisfied and may negatively influence workplace morale

Important: Don’t include Passives in the final score calculation, as they’re considered neutral.

Example eNPS calculation 

Let’s break it down with an example:

Total survey responses: 100 employees

• Promoters: 55 employees (55%)
• Passives: 25 employees (25%)
• Detractors: 20 employees (20%)

eNPS = (55 % − 20%) = 35

Summary: The company’s eNPS score is 35.

How to analyze your results 

Once you’ve calculated your eNPS score, the next step is interpreting the results:

1. Compare your score against industry benchmarks

The numbers below aren’t set in stone but are well-regarded as broad eNPS benchmarks: 

• 0 to 30 = Room for improvement
• 31 to 40 = Good score
• 41 to 50 = Strong score
• 50+ = Excellent

2. Identify trends over time

A single eNPS score is just a snapshot, but tracking it quarterly or annually spots trends. If your eNPS scores are rising, your employee retention, engagement, and cultural initiatives may be working. But if they fall, that’s a strong sign you should start investigating. 

3. Segment your data for deeper insights 

Breaking down eNPS results by department, location, tenure, or job role can pinpoint specific areas for improvement. If a certain team reports lower eNPS scores, it may indicate leadership or engagement challenges. 

If you’re tracking eNPS for a small company, take care that your segmentation doesn’t inadvertently damage any employee’s right to anonymity. For example, if you only have any one-person departments, it will be easy to reveal their score. 

How to follow-up 

Once the survey deadline is hit and you’ve analyzed the results, the next step is to share the key takeaways with your people. For example, you might acknowledge the data in a company newsletter or announce the information in a company all-hands meeting. 

Whatever your communication vehicle, the point is to share how leadership plans to act on the results and prove that you care about the employee voice. Fail to do this, and don’t be surprised if your employees don’t participate in your eNPS survey next time. 

4 limitations of eNPS and how to address them

eNPS is simplistic, which is part of its beauty and its limitations. While it’s an excellent starting point, let’s look at four common pitfalls and how to address them: 

Lack of context behind the scores 

eNPS scores don’t provide the full picture of employee satisfaction and engagement. It’s crucial to have a deeper understanding of why employees feel the way they do, so follow up with open-ended questions or additional engagement or pulse surveys to gather more context. 

Potential for biased responses 

Some employees may feel pressured to give a positive response, even if they’re not truly satisfied. Combat this by ensuring anonymity and communicating that honest feedback is valued. 

Risk of over-focusing on numbers 

eNPS provides valuable insights, but it’s important not to get too caught up in the numbers. Remember every score represents a real employee with their own unique experiences and perspectives. Use eNPS as a starting point for deeper discussions and actions rather than relying solely on the data. 

Ignoring passive respondents 

Passive respondents make up the bulky middle section of your eNPS section. While they’re omitted from the calculation, that’s not a good reason to forget about them. Passive respondents have scored either 7 or 8, but it probably wouldn’t take much to boost an 8 into a 9, or tank a score of 7 to a 6. 

Consider how many passive respondents you have, then put together a strategy to dig deeper. For example, in a separate survey, you might ask questions like: 

• “What employee benefits could we offer to make us an employer worth recommending to others?” 
• “Are there any changes to our work culture that would help you feel more engaged?” 

5 ways to improve your eNPS

Don’t be disheartened if your current eNPS score isn’t worth bragging about. As long as you’re committed to taking action, there are several things you can do to improve it: 

1. Address detractors’ concerns

The most important step is to acknowledge the concerns and feedback provided by your most demotivated employees. If you've used an open text box asking employees to explain their score, this should be your first point of reference. Look for red flags like: 

• Consistent themes or issues across multiple employee responses 
• Specific areas of concern, such as communication, work-life balance, or team dynamics 
• Problems with management

If you don’t have this qualitative feedback to work from, take steps to engage with your workers directly. Communicate to your company members that your latest eNPS survey results are disappointing and you’d like to improve their employee experience. Invite people to participate in a follow-up survey, hold focus groups, or open up a channel for anonymous feedback.

2. Engage your promoters 

Your eNPS survey may be anonymous, but your promoters are probably already known to you as engaged, passionate individuals that love working for your company. Engage them by: 

• Spreading positive word-of-mouth about your employer brand 
• Posting their employee spotlight and video testimonial on your company careers page to attract exceptional candidates 
• Setting up an employee referral program so they can introduce their talented friends and family to the company 
• Encouraging them to participate in company events and initiatives

3. Enhance your workplace initiatives 

Consider what initiatives you have in place to foster employee engagement and satisfaction. Are they effective? Are they reaching the right people? Take a look at your survey results and see if there are any areas that could benefit from additional support or resources. For example, if employee work-life balance is a common concern, consider implementing flexible work arrangements or offering mental health resources. 

4. Act on employee feedback 

Employee loyalty is far easier to achieve if leaders are proactive in trying to improve their experience. That doesn’t mean you need to deliver “everything” your employees want—that may not be feasible. But you can acknowledge feedback head-on and explain what is and isn't possible. 

Example: A company with a low eNPS score runs a follow-up survey to improve employee engagement. Using a wider range of qualitative data, the company learns that employees want more opportunities for learning and growth. There’s not enough room in the budget to provide formal training courses for employees this year, but leaders announce the introduction of a mentorship program instead, pairing seasoned employees with more junior personnel. Employee satisfaction increases as a result. 

5. Combine eNPS with other metrics 

eNPS is just one snapshot metric that is best propped up by a range of other metrics to provide the full picture. Pair your eNPS feedback with the following to understand your company’s health: 

• Employee satisfaction surveys 
• Engagement surveys 
• Pulse surveys
• Retention rates 
• Absenteeism rates 

Maximize your eNPS with quality employee benefits

A great eNPS score reflects a workplace employees genuinely love, and that’s much easier to achieve when you’re offering a rich selection of benefits with flexibility at their core. 

The Benepass Lifestyle Spending Account is just one example of a post-tax perk that will delight your employees. Here’s how it works: 

1. You’ll set up our Benepass LSA with eligible spending pillars, such as wellness, mental health, professional development, childcare, etc. 
2. You’ll determine a monthly allowance for each employee. 
3. We’ll code your unique policy into the Benepass platform and issue your Visa cards. 
4. We’ll connect Benepass to your payroll system to automate enrollment. 
5. You’ll communicate your new benefits offering to your employees, and they can start using their LSA from day one. 

Ready for a boost of your eNPS score? Book a free Benepass demo today or contact sales@getbenepass.com to connect with a benefits specialist.