On Peakon, it is possible to view scores in average mode and in NPS mode. This article will discuss the eNPS score, which refers to the engagement score in NPS mode.
To learn about the difference between average and NPS mode, see Comparing the average score mode to NPS score mode.To learn more about how scores are calculated, see How scores are calculated.
This article will cover:
Net Promoter Score became the gold standard of customer loyalty through its ability to predict real-world behaviours. In the same way, employee Net Promoter Score (eNPS) is quickly becoming the most widely-adopted measure of engagement in organisations.
The ubiquity of NPS often makes introducing the platform to all levels of management easier. However, it’s worth remembering – and potentially communicating to your team when rolling out Peakon – that eNPS is likely to return significantly lower scores than customer NPS. Quite simply, people tend to hold their place of work to a higher standard than the services they purchase.
The question used causes people to consider many factors that influence engagement (satisfaction with the organisation’s culture, work environment, career prospects, brand) and apply them to a very simple decision making process.
How it works
The main eNPS question is: “How likely is it you would recommend [Company Name] as a place to work?”. There are also 3 engagement outcome questions that contribute to the overall score, when viewing in NPS mode (see section Calculating an eNPS score using multiple engagement questions).
Employees answer this question on a 0 to 10 scale. The groupings of responses will already be known to those who have worked with NPS before, however below we define the behaviours associated with these categories from an engagement perspective:
These employees have major reservations about their role in the organisation. As a result, they actively divest themselves from their work. This disengagement greatly reduces performance, eats at the morale of others, and often creates an unattractive image of the company to the public. There are often clear, common problems, causing disengagement in teams. A manager's Peakon priorities will identify and promote action towards addressing these issues.
While not actively disengaged, these employees are still held back from applying their full-selves at work. Reviewing the engagement feedback of passives often reveals concerns (“It’s a great place to work, but…”) and is helpful to demonstrate why even though 7s and 8s are positive scores, improvements can be made. Passive employees are often not subpar performers, yet they are typically cruising. Prolonged neglect of issues can lead to passives becoming detractors, as they fall out of touch with the organisation.
Promoters are highly engaged with the organisation and their role. They approach work with energy, enthusiasm, and resilience. They take it upon themselves to go beyond expectations and to continuously improve how things are done. Internal ambassadors for the business's goals, they boost morale of those around them, while also spreading a positive message to those outside the business. Peakon data has shown that promoters are seven times more likely to stay with a business over the next three months than detractors.
How the eNPS score is calculated
The eNPS is calculated by subtracting the percentage of detractors from the percentage of promoters. Therefore, scores can range from -100 to 100.
|% of promoters - % of detractors = NPS score|
Often the percentage of promoters, passives and detractors is rounded up. For example, if the percentage of promoters was 30,64275037369208% it would be displayed on the dashboard as 31% promoters. In such cases, the original percentage is used for the calculation, instead of the rounded up number, in order to maintain precision.
Passives count towards the total number of respondents, so can push the overall net score towards 0 by diluting the proportion of promoters and detractors.
Calculating an eNPS score using multiple engagement questions
This section will outline how Peakon calculates the eNPS score, when the core eNPS question is accompanied with the engagement outcome questions.
- The system identifies the latest score per employee, per engagement question
- Each employee's engagement scores are averaged, giving each employee a single engagement score made up of the 1-4 engagement questions
- Each employee's single engagement score is converted to the NPS scale (scores of 0-6 are detractors, 7-8 are passives, and 9-10 are promoters)
- The number of promoters, passives and detractors is converted into an overall eNPS score using the standard methodology
For example, if someone has answered the core engagement question with a 7, the loyalty question with an 8 and the belief question with a 9, then the average will be 8.0. As this is exactly 8 the employee will be classified as a passive.
Recommended use for the eNPS score
When looking to increase engagement using eNPS it is important not to pull apart the metric (e.g. “how can I turn passives into promoters?"). Worse still, is to game the system by telling employees “if you’re happy, you should score us 9 or 10”.
The strength of eNPS is its strong prediction of behaviours (e.g. performance and retention). Being “happy” or giving a “good” score is a falsification of eNPS. “Good” in engagement terms, is not good enough. Falsely improving the score will not deliver the real-world benefits associated with it, and will therefore invalidate the usefulness of the data.
We recommend focusing your improvements on the priorities that Peakon identifies for each manager, and addressing these in a way as to benefit everyone in a team. Tracking the resulting movements in eNPS will quickly demonstrate the effectiveness of changes.
Another value of eNPS is that it fluctuates to a far greater extent than averages scores, enabling managers to take an iterative, test and learn, approach.