In today’s competitive business environment, leaders are always on the lookout for reliable metrics that can predict their company’s future success. While traditional metrics like revenue and EBITDA are crucial, they often serve as lagging indicators of performance. An increasingly recognized leading metric is the Employee Net Promoter Score (eNPS), which offers valuable insights into employee loyalty and satisfaction.

Understanding eNPS

Employee Net Promoter Score (eNPS) is a straightforward yet powerful tool for measuring employee engagement. It revolves around a single question: “On a scale of 0-10, how likely are you to recommend this company as a place to work to a friend?” Based on their responses, employees can be categorized into three groups:

• Promoters (9-10): Highly satisfied employees who are likely to recommend the company.

• Passives (7-8): Moderately satisfied employees who might not actively promote the company.

• Detractors (0-6): Dissatisfied employees who may speak negatively about the company.

The eNPS is then calculated by subtracting the percentage of Detractors from the percentage of Promoters.

Why tracking eNPS?

A high eNPS signifies a positive workplace environment where employees are happy and engaged. This is often linked to several beneficial business outcomes: higher productivity, better customer service, and lower turnover rates. They will also attract better colleagues, creating a virtuous circle.

At BrightWolves, we consider eNPS a key performance indicator that measures employee engagement and the health of our workplace culture.

Each month, our employees answer a few simple questions to rate their happiness within the company on a scale from 1 to 5. Although the questions are basic, tracking the responses monthly enables us to monitor employee satisfaction. A decline in eNPS will prompt us to take action and make necessary adjustments.

Of course, you might experience some seasonality drop, as is often the case at the beginning of winter. Here is an example of our pulse survey results shared with our employees.

Beyond its internal use, eNPS has also become a valuable investment indicator. For instance, US-based Private Equity Alpine Investors tracks the eNPS in their portfolio companies. The eNPS reveals potential issues long before they appear in financial data, helping to anticipate problems early across their portfolio companies.

A decline in eNPS triggers action immediately before any financial or long-term damage is caused.

The Case for Prioritizing eNPS

Leaders should take ownership of employee engagement metrics, integrating them into their strategic cockpit. This involves not only measuring eNPS but also delving deeper into the cultural aspects of their organization. By asking targeted questions and acting on the feedback, leaders can address underlying issues and foster a more supportive and engaging work environment.

Actionable Steps for Leaders

1. Regularly Conduct eNPS Surveys: Put in place a monthly process to survey employees’ engagement and calculate the eNPS
2. Analyze the Data: Look beyond the score to understand the drivers behind employee sentiment
3. Take Action: Implement visible changes based on feedback to improve the workplace environment.
4. Communicate with Employees: Keep employees informed about the actions taken in response to their feedback, reinforcing their value to the organization

Employee Net Promoter Score (eNPS) is more than just a metric; it’s a powerful predictor of a company’s future success. By focusing on employee satisfaction and engagement, you can create a positive workplace culture that drives productivity, enhances customer service, and reduces turnover rates. In an era where employee experience is paramount, prioritizing eNPS can set the foundation for sustainable business growth and success.