The importance of a European eNPS measurement

To what extent are employees within your organization positive about being an employer? This is easy to test with the eNPS (employee Net Promoter Score). At the same time, the scores of Europeans are systematically lower than those of Americans. From this you can deduce that European organizations have less enthusiastic employees than in the US. In this article, we therefore explain what the European eNPS means and why it is useful to take it into account.

Origin & definition eNPS

The eNPS is based on the NPS (Net Promoter Score)., which was devised by management consultant Frederick Reichheld (Artz, 2017). He was looking for an accessible way to measure market loyalty without losing the quality of the research (Reichfeld, 2003). The answer to his question was the NPS. By asking just one question, "How likely are you to recommend this brand to family and friends?" consumer enthusiasm can be easily measured. This concept can also be adopted to measure employee loyalty toward the employer. Thus, the eNPS was born.

Based on the degree of recommendation, an employee is assigned to one of the following three groups:

Source: Faltejsková, Dvořáková, & Hotovcová (2016)

Criticasters

Among this group of employees, they are least likely to recommend their employer to friends and family. They do see areas for improvement for the organization.

Passively satisfied

These employees are moderately enthusiastic about their employer. On the one hand, this group does not actively recommend against the employer, but they are also not eager to convince friends and family to join the organization.

Promoters (Ambassadors)

This group of employees consists of those who are most enthusiastic about their employer and, as a result, they actively recommend the organization to those around them.

The eNPS score is calculated by calculating the difference between the number of critics and the number of ambassadors, then dividing by the total number of respondents. The higher this score is, the more ambassadors there are in the organization relative to the number of critics. The advantage of a high eNPS is that the organization has a successful and positive corporate culture. This in turn can have the effect of attracting new talents and retaining (desired) staff (Hofhuis & van Hoog, 2010).

Difference measurements U.S. and European eNPS

The reason behind differences in answering between U.S. and European measurement was found in the research of Faltejsková, Dvořáková, & Hotovcová (2016). They noted that cultural perceptions of grades are very different when comparing the United States with the Netherlands. Dutch employees show more reluctance to assign a perfect score of 10 because of the attitude that there is always room for improvement. This is also known as the "Dutch effect. On the other hand, in the United States, higher marks are more likely to be awarded at all.

Because of these differences, the European measurement included that participants are more likely to be seen as passively satisfied or ambassadors (Janmaat & van Herk, 2014), as shown in the figure below:

Source: Faltejsková, Dvořáková, & Hotovcová (2016)

More opportunities for international analysis

Adopting the European measurement in the Netherlands also creates a more accurate way to compare employee surveys.

Surveys conducted in different countries can now be compared more fairly as cultural bias has been taken into account; employees in Europe tend to give lower grades than those in the United States (Stoop, 2006).

This makes it easy to compare employee surveys with other organizations, as the results can be contrasted with international surveys. This applies to companies that are in the same industry, but also to organizations that operate internationally.

The European eNPS as an Innovative Leverage

The move to the European eNPS in the Netherlands demonstrates the benefits of a modified approach to measuring employee satisfaction.

The "Dutch effect," where Dutch employees are reluctant to assign perfect scores, indicate the relevance of using a European metric.

The European eNPS not only provides accurate evaluations at the local level, but also valuable insights for international comparisons. By embracing this approach, we not only improve our local measurements, but also gain valuable knowledge from global benchmarks.

Curious about your eNPS score? Via this link you can set up an employee survey: https://www.presearch.nl/medewerkersonderzoek/tevredenheidsonderzoek/

Bibliography

Artz, M. (2017). NPS-The One Measure You Really Need to Grow. Controlling & Management Review, 61, 32-38.

Faltejsková, O., Dvořáková, L., & Hotovcová, B. (2016). Net Promoter Score Integration into the Enterprise Performance Measurement and Management System-A Way to Performance Methods Development. Economics and Management.

Hofhuis, J., & Van't Hoog, M. (2010). Handbook of Successful Diversity Interventions. The Hague: Ministry of the Interior and Kingdom Relations. doi, 10(2.1), 4000-3361.

Janmaat, F., & van Herk, H. (2014). How Comparable is the Net Promoter Score Across Countries. Monthly Journal of Accountancy and Business Economics, 88, 282.

Reichheld, F. F. (2003). The One Number You Need to Grow. Harvard Business Review, 81(12), 46-55.

Stoop, I. (2006). Country Comparative Surveys: Comparison between Countries and between Surveys. Developments in Market Research, 95.

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