How can you measure Employee Satisfaction using an NPS® survey?

So, you are leading a great Organisation, a great division, you are a great manager, supervisor, team leader, you are funny and everybody wants to work with you. You provide feedback, your employee retention rate is high, your team loves you and other departments look forward to the opportunity of collaborating with your team.

That is a common way to believe about ourselves and our teams. But is there a way to quantify this feel-good notion and see if there are gaps we could improve on. To see if, at the end of the day, our notion holds true?

One way of testing this notion is by modifying a common survey metric used extensively for measuring customer loyalty and customer satisfaction. The NPS® (Net promoter Score) survey.

I did this by using a common method for innovation I blogged about here and here (i.e. SCAMPER).

NPS® (Net promoter Score)- for Organisations

The concept of the Net Promoter Survey was introduced by Fred Reichheld in his Harvard Business Review article called “The One Number You Need to Grow”.

A simple definition is this:

Net Promoter is a management tool that can be used to gauge the loyalty of a firm’s customer relationships. (Wikipedia)

The concept is simple because it is based on one question that is easy to answer and pretty straightforward.

For an Organisation the NPS®® question is:

How likely is it that you would recommend our company to a friend or colleague?

An quick recap of the method can be found below:

  1. Ask the question to a sample base (key customers, account managers etc). The greater the sample base the more accurate the results.
  2. Collect the data and establish percentages for below categories.

          i). Percentage that answered 1-6 (these are considered detractors)
         ii) Percentage that answered 7-8 (these are considered passives)
        iii) Percentage that answered 9-10 (these are considered promoters)

Then deduct (the % score that answered 9 or 10) from (the % score that answered 1 to 6). The outcome is your Net Promoter Score. See below illustration for easier reference.

Net Promoter Score (checkmarket.com)

You can then compare it to an industry benchmark or establish a trend of how your NPS® trends over time.

Of course, just asking the question and getting a good or a bad result is one thing. Understanding of why you are getting such a score is another.

So, the NPS® question should be followed or accompanied by a more comprehensive customer survey. Additionally, having a customer relationship journal (CRM systems) capturing customer feedback and constantly reassessing what the customers really value or find worth paying for, assists in influencing your decisions and thus, improving the next NPS® result.

David Mitzenmacher on his blog portrayed this on a nice illustration.

Net promoter on a Napkin

Modified for use within Teams

For team members or employees in general the question can be modified as follows:

Considering your experience working for [insert team or company name], would you recommend to others to join [insert team or company name] when a position becomes available?

Modified for use within Teams

For a team the question can be modified as follows:

Considering your complete experience with the [insert name of team], how satisfied are you with the products and services that the [insert name of team] provides?

Necessary Caveat

There is a caveat. IF you are unwilling to change your ways based on the feedback provided or don’t intend to keep an open mind, THEN these surveys and feedback sessions can, and most probably will, do more harm than good.

This is because people will not trust that you genuinely want their input and so, will either not provide genuine feedback or avoid participating altogether (in both these situations you lose).

At next posts we will see two practical ways of getting specific feedback from your team/ employees so, from an informed position, you can influence the NPS® score.

So, what is your NPS® score? Is this what you envisaged?

[Image credit: 123rf.com]

About George Vrakas
George Vrakas (MBA, CCMP, CMILT) is highly reputed in the fields of Contract and Relationship Management as well as, Services Procurement and Logistics with extensive experience in Contract Management, Procurement and Supply Chain. George is passionate about Contract Management, Procurement, Innovation, Continuous Improvement, Exploring trends that will shape the Future, Team Development and the Modernisation and Automation of processes. George is a member of IACCM. George is the author of www.georgevrakas.com blog and has presented on Globalisation, Procurement and Continuous Improvement at various venues and Universities in Victoria, Australia.

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