Whenever the question is asked about how a particular task or endeavour can add value to your organisation's balance sheet and bottom line, management's ears will perk up and eyebrows will be raised. The golden question is always about adding value to the business and setting itself apart from the competition in the same marketspace. As businesses are changing and adapting to the ever-changing world we're all living in at the moment, still within a global pandemic, it's crucial to remember about your employees more so than ever before, with so much doubt and uncertainty around.
There will always be a handful of employees who are completely dedicated and committed to your business, they will be your boldest brand ambassadors and vouch that its a great place to work. According to a Talents and Trends Report published on LinkedIn, employees who feel empowered, respected and like they're making a difference are more likely to stay on board, and those that don't have a 35% chance of staying. With this in mind, businesses need to delve deeper into the latter pocket of employees and see how best to nurture them, without dismissing the dedicated bunch.
There's also been a big shift where employees are wanting to be part of something bigger, that they are contributing and have a greater sense of purpose and belonging. HR and Management teams are placing a lot more emphasis, time and resource into the overall employee experience, boosting the employee culture within the business plus are implementing employee retention initiatives. One common metric which can be used to start understanding how engaged employees actually are and what makes them tick is the Employee Net Promoter Score.
Employee Net Promoter Score
In a previous article we delved deeply into what exactly is an Employee Net Promoter Score (e-NPS). In short, it is defined as a concept that is built around the Net Promoter Score (NPS) to measure employee engagement. It is a method of measuring how willing are employees to recommend their workplace to their family, friends or acquaintances. This score offers some insights and intelligence into the factors which are influencing the employee experience as well as cultural alignment and employee passion. This is a key predictor for gauging employee retention as well as a clear indicator for what is working well for employees, and what needs reviewing and adapting.
The primary question to determine what the e-NPS is, in an employee survey asks, “On a zero-to-10 scale, how likely is it you would recommend Company X as a place to work to a friend or colleague?”, followed by “what are the most important reasons you selected that score?”
With this in mind, the big question: how can your e-NPS add value to your balance sheet?
Improving Employee Retention
First and foremost, it can help improve employee retention. Jobs with a higher retention rate (high e-NPS) often point to happier and more satisfied employees. Once the correct calibre of candidate is hired, the key is to retain them. High retention is a solid testament to how good it is to be a part of the company, as well as rewards the company with a positive and attractive reputation.
Recruitment is very costly: from interviewing, hiring, training and lost productivity. For example, for entry level employees, it costs 30%-50% of their annual salary to replace them, for mid-level employees, it can cost upwards of 150% and for high-level employees, it can be up to 400%. With this in mind, it's crucial to consider how to best retain your employees, how to engage them as this will ultimately impact the bottom line.
It is cost-effective
Employee satisfaction and engagement does not need to be expensive. Employees cannot be bought, so to speak. It's becoming much more prevalent that employees want to be respected and looked after, over just compensation. They want to be heard as well as trusting that the organisation will provide growth and development opportunities for them, and not just work them to the bone. HR teams can invest more into their engagement strategies such as recognition milestones, aligning organisational values to its goals, open and transparent communication, and ensuring the organisational culture is conducive to a sense of belonging and happiness.
Getting to know your team, rewarding their performance and doing so publicly is not going to cost your business a great deal. A congratulatory email, a birthday cake, or a public acknowledgement of the individual can make each member of staff feel special and give them a sense of worth in that company - this is likely to help increase e-NPS scores. Keeping your team happy and engaged is not just about the rewards on offer, but also about the recognition you give them. Getting personal recognition from a boss or your peers can be as valuable and motivating as the financial and lifestyle benefits on offer.
Boosting company reputation
Engaged employees are a priceless tool which speaks volumes and a lot more than any paid campaign to promote your organisation. Honest testimonials and sentiments cannot be bought and are often more authentic and real when people are searching for your products and services. This engagement can be viewed as a money-can't buy offering to any business, and can make or break a company. Word of mouth spreads very quickly and employees can be viewed as a company's biggest brand ambassadors or antagonizers.
In conclusion, your e-NPS is an extremely precious metric that can redefine and bolster your employee experience if used correctly and action is taken accordingly, this has the potential to exponentially impact the success of your business ten-fold. The indispensable insights which it outputs can help with employee engagement, retention and ultimately boost performance and increase business revenue - thus, adding value to the bottom line.
Xexec is an Employee Engagement specialist who understands the value of employee engagement and recognition and how this can impact an organisations e-NPS. Download our e-Book on why employee recognition is so important.