TheEmployeeNetPromoterScore:A(new)MetricforAssessingYourWorkforceEngagementProfileAngelaSong,PhD

SrDirector,OrganizationalAssessmentsandStrategyOfficeofOperationalStrategicInitiatives

UCSanDiego October24,2017

2017 California Higher Education Collaborative Conference

10,000 data geeks unite!

Data à insights à actions à outcomes

´Business processes optimized´Workplace climate enhanced´Reduced costs´ Increased efficiency´Satisfied customers´Satisfied and engaged

employees

TODAY’s Agenda

´The Net Promoter Score (NPS)

´The NPS and UC San Diego’s Customer

Satisfaction Survey benchmarking cohort

´The development of the Employee Net Promoter

Score (eNPS)

´ Interpreting the eNPS

´Next steps

Onascaleof0to10,howlikelyareyoutorecommendthiscompany’sproductorservicetoafriendoracolleague?”

The Net Promoter Score (NPS)

“Onascaleof0to10,howlikelyareyoutorecommendthiscompany’sproductorservicetoafriendoracolleague?”

How the Net Promoter Score is calculated

Notethatthisone-questiondoesnotgiveanydetailedactionableinformation;itisahighlevelmetricofcustomerloyaltyandpositivesentiment

Net Promoter Scores – Industrial Standards

Added the NPS to the Faculty and Staff Customer Satisfaction Survey

• StartedatUCSanDiegoin1993with11businessaffairsdepartments

• Confidentialresponses

• 8 Satisfaction/benchmarkablequestions

• Upto4additionalsupplementalquestions

• Open-endcomments,anda“burningquestion”

• Recognitionofdepartmentsorteamsforexceptionalcustomerservice

• EightUniversitiesparticipatinginthebenchmarkingprogram

• In2016,350departments/programssurveyedand252includedthe

NPSasoneofthebenchmarkingmetrics

Example of Benchmarking of the NPS – Customer Satisfaction Survey

RangeofNPSAcrossUniversityCustomerSatisfactionSurveyCohortfor252surveyunits

Higher Education Net Promoter Score Scale by Service Category

Average=19

IndustrialAv:33

Can we apply the Net Promoter Score to an Employee Engagement Survey?

UC San Diego’s Staff @Work Survey - History1997:

*Papersurvey

*127questions

*1,500staff,oneViceChancellorarea

2003:

*Firston-linesurveywithSpanishversion

*52surveyquestions

*Anonymous

*4,490staffemployees,4VCareas

*52%responserate

2015:

*8,000staff,10VCareas

*66%responserate

*UsedFactorAnalysistoExamineandre-categorize52questionsintokeydimensions

*DevelopedeNPS

2017:ThreeuniversitiesusetheStaff@WorkSurveytoolandarepartnersinthebench-markingprogram(morejoiningin2018)

2016:

AppliedeNPS tosurveydataanalysis

Staff@Work/EngagementSurveyAnonymous(versusconfidential)2016– 5,140respondents;66%campus-wide.<1.0MarginofError.

• Twenty-six items showed a statistically significant increase in scores from last year:

• Faculty value contributions• Have a voice on campus• Have tools• Spirit of cooperation• Ethical conduct• Better ways recognized• Recommendations without fear• Treats with respect• Performance evaluations• Enjoy working with co-workers• ..

Likert Scale: 1-5, where 1 = Strongly Disagree and 5 = Strongly Agree

Impact Analysis = using regression analysis to identify satisfaction level and what is important… Identifies strengths and where to focus efforts

Primary Opportunities are those with the lower scores and are importantto satisfaction (per regression analysis)

ApplyingtheNetPromoterScoretotheemployeeengagementsurvey

Oursurveytool(Staff@WorkSurvey)hadatoplevelquestionrerecommendingtheUniversity.Wechangedthis:

Tothis:

ApplyingtheNetPromoterScoretotheEmployeeEngagementSurvey

NPS=42%- 24%=18

Whatdoesthismean?

AccordingtoNPSresearch,anyscorethatisabovezeroisgood,anythingabove+50isexcellent,andover+70isconsideredworld-class.

This just didn’t make sense when the NPS was applied to a work satisfaction survey

Issues applying the NPS to employee engagement

• NPSisusedforevaluatingacompany’sproductsand/orservices

• NPShasneverbeenappliedtoanemployeeworkforce

• NPSomitsscores7and8onthescale,whichisnormallyconsideredhighinanemployeeengagementsurvey

• NPSislimitedinactionableinformation

• Employeeengagementandsatisfactionismorecomplex(andpersonal)thancustomer’sfeelingsaboutacompany’sproductorservice

We combined the score distributions of the two top level questions for a more complete analysis:

“Overall Satisfaction” and “Would You Recommend?”

SatisfiedPromoters

4or5ontheSatisfiedEmployeeQuestion;7to10ontheLikelihoodtoRecommendQuestion

Satisfied (Engaged) Promoters(high satisfaction/likely to recommend)

DissatisfiedNon-Promoters

1or2ontheSatisfiedEmployeeQuestion0to4ontheLikelihoodtoRecommendQuestion

Dissatisfied (Disengaged) Non-Promoters(low satisfaction/not likely to recommend)

A new metric is born: Employee Net Promoter Score (eNPS)

SatisfiedPromoters=37/48=77%

DissatisfiedNon-Promoters=3/48=6%

eNPS=77%- 6%=71

WhatdoesanEmployeeNetPromoterScoreof71mean?

Basedondatafromthreeuniversities,wedevelopedthefollowingeNPSscale:

Below40 Low40– 59 Marginal60– 79 Good80&Above Excellent

UC San Diego’s Employee Net Promoter Score (eNPS), 2016

181 Disengaged Detractors (low satisfaction/not likely to recommend)

Implications:Turnover, low productivity, absenteeism, low satisfaction, sabotage

3,236 Engaged Promoters (high satisfaction/likely to recommend)

Implications:Innovation, high productivity, work satisfaction, high engagement, loyalty

What this means:

Considerations in applying the eNPS

• eNPSisnotintendedtolabelorcompartmentalizeemployees

• Itisimportanttohavetrenddatatoverifyreliabilityofthescores

• Bewareofsmallsamplesize(protectinganonymity)

• Whataboutalloftheotherfolksnotinthethosetwogroups?

UC San Diego’s Employee Net Promoter Score (eNPS), 2016

What about all these in the yellow highlighted area?

SatisfiedNon-Promoters4or5ontheSatisfiedEmployeeQuestion0to4ontheLikelihoodtoRecommendQuestion

DissatisfiedPromoters1or2ontheSatisfiedEmployeeQuestion7to10ontheLikelihoodtoRecommendQuestion

Passives3ontheSatisfiedEmployeeQuestion5or6ontheLikelihoodtoRecommendQuestion

ACompleteWorkforceProfileMatrix

StrengthsandOpportunities

Strengths

Summary

• NPSisacustomerloyaltymetriccommonlyusedinindustry

• BasedontheNPSmethod,wedevelopedametriccalledEmployeeNetPromoterScore(eNPS)toincludeinourStaff@WorkSurvey

• InadditiontotheRecommendquestion,eNPSrequiresanOverallsatisfactionquestiontogiveacompletepicture.Workengagementismorecomplexthanfeelingsaboutaproductorservice

• BasedonthiseNPSprofile,wecanfurtherdrill-downanalyzingrelationshipsanddriversbasedonothersurveyquestionstodevelopspecificstrategies

• AdditionalresearchisunderwaytofurtherunderstandthecorrelationbetweeneNPSandoutcomes.Forexample,doesaloweNPSleadtohigherturner,lowerproductivity?• QuantitativeAnalysis– Ongoing• AnecdotalEvidence– Supports