Monday, December 14, 2015

eNPS: Employee Satisfaction, Engagement & Retention

Are you familiar with NPS (Net Promoter Score)? It is a great overall customer satisfaction and loyalty metric increasingly used by companies around the globe. The fundamental principle is that there is a single "magic question" that provides fast and accurate insight into satisfaction and loyalty. Rather than asking someone a bunch of questions about their experience with your company, you simply ask them to answer based on a scale of 1-10:

"How likely are you to refer our product/service to your colleagues or friends?"

The calculation for your score is simple. You ignore the "passive" responders and then subtract the "detractors" from the "promoters," as follows:

EMC has been using NPS for a while now, but I want to encourage a new metric for us to consider. It is eNPS (employee NPS). The premise is that employee satisfaction and loyalty have a direct and massive impact on customer satisfaction and loyalty. Of course, cNPS (customer NPS) is influenced by other things like product/service quality, pricing, etc. But those "other" things are relatively easy to impact when compared to eNPS. If you can maintain a high eNPS score, your chances of achieving high cNPS scores are significantly improved.

Other good eNPS indicators include the "Three R's" . . .
  • Referrals - % of employees referring someone for a job (Note: This is a great proxy that can give you an eNPS score even without sending a survey!)
  • Retention - % of employees retained (Note: Don't count internal movement as attrition!)
  • Retooling - % of employees participating in formal, structured training on a regular basis (I suggest quarterly at a minimum)
I applaud EMC and others for participating in annual Great Place to Work surveys. Just as important, if not more so, are more frequent and simple "Pulse" surveys. We've got one about current events coming up this week!

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