What is NPS?

What is NPS?

Net Promoter Score (NPS) is a robust metric that measures employee satisfaction and loyalty, offering a clear glimpse into your organisation's health. It's not a complicated algorithm; it's a straightforward question that can transform your understanding of employee sentiment on a scale of 1 to 10.

How it Works?

To calculate NPS, employees are asked questions such as "On a scale of 0 to 10, how likely are you to recommend our company to a friend or colleague?".

The responses categorize employees into three groups:-

·       Promoters (9-10): Enthusiastic employees who boost your NPS%. Their positive inputs, enhances organisation’s satisfaction levels, contributing significantly to NPS%. An NPS Score of 9 to 10 is considered as Promoters. Promoters increases the NPS%.

·       Passives (7-8): Satisfied but not praising the organisation openly, passives don't significantly impact organisation’s score. They are content, but not strongly invested in betterment of the organisation process. An NPS Score of 7-8 is considered as Passives. Passives don’t affect the NPS%.

·       Detractors (1-6): Unhappy employees who can drag down your NPS. Detractors may spread negative feedback, lowering organisation’s overall score and highlighting areas that need improvement. An NPS Score of 1-6is considered as Detractors. Detractors decreases the NPS%.

How NPS% is calculated?

The NPS calculation is straightforward. Subtract the Number of Detractors from the Number of Promoters. The resulting NPS%, ranging from-100% to 100% provides a snapshot of employee loyalty. The higher the score, the stronger your employee relationships.

How NPS Score is calculated?

In addition to categorizing employees, individual NPS scores can range from 1 to 10, with 10 being the most positive. This absolute score allows for a more nuanced understanding of the employee's sentiment, aiding in targeted improvements.

How to craft an effective NPS Question?

Keep questions clear and straightforward. To enhance the NPS score, focus on overall employee experience, ensuring you gather insights that drive actionable steps.

Use terms such as:

·       “On a scale of 1-10, rate ………….”

·       “Please rate …………. on a scale of 1-10”

·       “How would you rate …………. on a scale of 1-10?”etc.

By embracing NPS, organisations not only gain insights into employee satisfaction but also receive a tangible metric that reflects employee loyalty. Actively managing promoters, addressing the concerns of detractors and engaging passives contribute to a healthier NPS, paving the way for sustained employee satisfaction and organisation success.