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Tuesday , January 16 2018

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How Net Promoter Score Measures Employee Loyalty and Engagement

Ever heard about Net Promoter or Net Promoter Score (NPS)? NPS is a metrics tool that typically gauges the loyalty of an organisation’s customer relationships. While NPS has been highly adopted by many major companies as a means to ascertain customer behaviour, recruitment agencies are also privy to using this method to assess employee loyalty.

Learning Net Promoter Score

Loyalty is a trait greatly influenced by emotion. When assessing emotions, asking specific things help reveal intention. NPS asks participants certain questions to calculate a score, which is then used to measure overall loyalty. The scoring system is pretty simple: participants simply respond to questions with a number between 0 and 10, with 0 indicating a poor attitude towards the organisation and 10 signifying value-creating behaviours.

To give you a more comprehensive idea of how it works, let’s look at the three core categories that differentiate the groups of respondents.

  1. Detractors

Participants who fall under this category are those who respond with a score from 0 to 6. These people usually speak negatively about the company, do not exert much effort, and do not plan to stay long in the organisation. A recruiter can easily distinguish this batch as they are usually the ones who have nothing encouraging to say and will take whatever chance they have to disapprove the management. Though it may sound discouraging, the advantage of discovering this early enough enables you to reassess your current strategies, put a plan into action and work towards shifting these attitudes.

  1. Passives

A person who scores from 7 to 8 is called a ‘Passive’ based on the Net Promoter measurement. Passive respondents hover in the middle: they don’t feel totally bad about the firm, but they don’t go the extra mile either. In recruitment, passive employees are those who tend to avoid taking part in company-related activities or events. Like Detractors, the proper motivation can influence Passives to become Promoters.

  1. Promoters

Those who score from 9 to 10 fall under this category. Promoters are exceptionally loyal employees. They are the type of people who contribute massively to the success and growth of an organisation. You can streamline these type of people from the moment you deploy a talent pool. You can also develop Promoters in your company by dedicating your time and effort into key areas: for instance, keep your employees engaged in and passionate about your company, provide them a solid career ladder to climb, and recognise and reward their accomplishments.

Calculating the result

When calculating the NPS, take the percentage of the people in your sample who scored as a Promoter then subtract the percentage of Detractors. That would be: NPS = %Promoter – %Detractors. The score will range from -100 to +100. The closer the score is to +100, the higher the overall loyalty of your employees.

Once you’ve obtained your results, there are tactics you can deploy to help boost your employee loyalty. Your HR system could make use of suggestion boxes, questionnaires, Q&A programs, online feedback, or individual discussions. Alternatively, you could sit down on employee committees and engage in one-on-ones with your staff.

About Gagan

Welcome! I’m Gagan. This is my lifestyle blog devoted to fashion, beauty, daily health tips and all the in-betweens. I hope you will enjoy my daily style and never boring life!

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