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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