How High is Your HR Net Promoter Score?
More than ever, HR and business leaders are using data to measure and improve employee loyalty and reduce turnover. Deloitte referred to this in a recent report on human capital trends and suggested that it’s time to “rewrite the rules.” Good data is an asset when it comes to making decisions and constructing an HR strategy for the changing times, and much of it is easier to gather than you might imagine.
What is a Net Promoter Score (NPS)?
A net promoter score (NPS) is an index ranging from -100 to 100. It is calculated by asking survey participants to rate their likelihood of recommending the company or brand to a friend or colleague. Respondents answer a key question using an 11-point scale. The method is popular because it is easy to understand and simple to work with.
Many companies use an NPS to gauge whether customers are promoting their brand among friends and as a measurement of overall customer satisfaction. A high NPS indicates a great company or product loyalty.
The same idea can be applied within the realm of HR. While traditionally used in marketing, an NPS survey can also be adapted to provide useful information about employee satisfaction, too. This involves finding your organization’s net promoter score for HR.
How Can an NPS Help with HR?
The NPS can be used to gauge employee loyalty. To find your HR Net Promoter Score, ask your employees: “On a scale of 0 to 10, how likely are you to recommend working at this company to a friend or a colleague?” With the data gathered from your survey, you can classify employees into three categories: detractors, passives and promoters.
Detractors give a score of 6 or lower. They are not especially excited to work for your company. They are not dissatisfied enough to quit, but would likely leave should the opportunity arise. Detractors are not boosting your company within their circles and could be actively damaging its reputation.
Passives give a score of 7 or 8. They are somewhat satisfied working at the company but might leave for another employer if given the chance. They are not unhappy enough to be spreading negative sentiments but are not actively recruiting the best people to your company.
Promoters answer 9 or 10. They love working for your company. They believe in the mission, see the value in the product and generally like coming to work. They are the enthusiastic advocates who actively recruit their best and brightest friends.
How to Calculate Your HR Net Promoter Score
You can calculate your HR Net Promoter Score by subtracting the percentage of employees who are detractors from the percentage who are promoters. What is generated is a score between -100 and 100. If all of the employees gave a score lower or equal to 6, this would calculate to a score of -100. On the other end of the spectrum, if all employees answered the question with a 9 or 10, then the total HR Net Promoter Score would be 100.
In order to further understand the score, you can ask a second, open-ended question to your employees: what’s the primary reason for the score you gave? This question allows you to understand the biggest drivers of employee happiness and engagement at your company, and what you can do to improve your score.
Knowing and analyzing your score provides you and your HR department with a simple and straightforward metric that can be easily shared and understood. Improving it can be an incentive to make the employee experience as positive as possible with a KPI to track progress. Surveying your employees is the first step toward creating a culture of happy promoters.