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eNPS: What Is It and How Does It Work?

Discover the importance of measuring the eNPS

Written by Product Team

What is the eNPS?

The eNPS gives us an overview of the perception your employees have of your organization and their level of loyalty towards it. In this article we'll explain in more detail how it works.

It allows us to find out first-hand what opinion they have of the company and their level of loyalty. This will help reduce staff turnover, since the higher the eNPS, the less likely employees will be to leave the company.

The eNPS is a long-term indicator and the score obtained the first time is nothing more than a starting point. If measured with a certain regularity, it allows us to make decisions if there is a significant drop before it's too late. Equally, if the indicator is positive, it helps us to continue reinforcing the actions taken so far.

How often is it measured?

Every three months Happyforce automatically launches a campaign to measure the eNPS among all employees.

How is the eNPS measured?

At Happyforce we frame the eNPS as the following question:

"On a scale of 1 to 10, how likely is it that you would recommend your company as a good place to work?"

Respondents are classified as:

  • 1-6: Detractors

The eNPS is calculated as follows:

eNPS = (PROMOTERS - DETRACTORS) / Total population x 100

The arithmetic is standard Net Promoter, proposed by Reichheld (2003) for customers and later adapted to employees.

How are the results interpreted?

Results range from -100 to +100, and while the quantitative data is important, perhaps even more important is the qualitative information that employees voluntarily provide.

In terms of quantitative data, we could make the following classification:

  • Below -10: the result is not good, and we should pay attention to what may be happening in our organization

  • Between -10 and +20: we're at correct levels

  • Between +20 and +40: this is a good result

  • Above +40: the results are excellent šŸ‘

How do I consult the data in Happyforce?

As an administrator/manager of the platform, you have the ability to view the evolution of your employees' satisfaction through the Dashboard, at any time that we have carried out the measurement.

This allows you to get an initial overview of the eNPS evolution, and consequently, the impact of the actions taken in the organization in reference to the feedback received from employees.

What eNPS does not tell you

eNPS is a coarse indicator, and knowing that is part of using it well.
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The promoter/detractor cut discards information, and a single evaluative item cannot explain why people would or would not recommend their company.
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We keep it for two reasons.
- First, it is the most widely understood benchmark in the industry, which makes it useful in leadership committees and for comparison across companies.
- Second, as an evaluative measure it complements the affective measure of the Happiness Index: the HI captures how work feels day to day, eNPS captures the considered judgement.
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Together they triangulate better than either alone.


The explanatory work eNPS cannot do is done by the Scores: a root indicator that summarises, and a driver model that explains. That is the point of the architecture.Keep reading

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