Written by James Charles.
Learn about Employee NPS® (eNPS) and why it is important that you are actively using it in your business.
What Is It?
Employee NPS®, also known as eNPS, works in the same way as the traditional Net Promoter Score® you are already using with members in your club but instead of surveying your customers you are reaching out to your staff to get their feedback on how likely they are to recommend working with you to a friend.
Each member of staff gives you a score between 0 and 10, where 0 is not at all likely to recommend and 10 is highly likely to recommend. The score is accompanied by a comment to give context and allow you to inform any actions you need to take to make improvements.
Cumulatively, staff scores allow you to gauge the loyalty of your workforce with a simple, benchmarkable number; your Employee Net Promoter Score. You can easily compare this score across sites and against other organisations.
For an in-depth explanation of how Net Promoter Score works, click here.
Why Do You Need to Be Using It?
The idea of eNPS is that happy staff = happy members. If you can improve the experience of your employees, measured by eNPS, it will result in an improvement to the experience they are delivering to your customers, measured by NPS. Many health and fitness operators now position NPS as a headline business metric due to its proven links to retention[i].
Here are four key reasons you need to be using eNPS in your business.
1. Reduce Staff Attrition
Just like with members, it is in your best interests to retain your staff. You have invested thousands of pounds or dollars and tens if not hundreds of man-hours into their recruitment, initial training, and ongoing professional development so the longer they stay the better your return on investment (ROI).
A 2012 study conducted by the Center for American Progress stated that the cost of losing an employee with an annual salary of below $30,000 (£23,600) is around 16% of their annual wage[ii]. This figure rises to nearer 20% for those earning between $30,000 and $75,000 (£59,000) and can be astronomical for the top-earning senior executives.
Using that figure of 16%, even if you are only paying your gym-floor staff UK National Minimum Wage of £8.21 per hour[iii] ($10.44), you are looking at an often avoidable cost of over £2,000 to recruit a new full-time member of staff when someone leaves.
Losing rockstar staff members because their experience of working for you isn’t up to scratch would be a killer blow for any manager, especially if they go to work for your competition, and have a direct impact on your member experience.
2. Increase Productivity
Studies have shown that happy employees are 20% more productive, with those in sales-focused roles closing 37% more deals[iv].
Even just by asking them for their input you are making your employees feel more valued and showing them the role they are playing in the bigger picture.
As well as allowing you to identify effective ways of improving the employee experience, engaging with your staff and asking for their feedback also has the potential of helping you uncover efficiencies in the way they work and their ideas, ‘from the coal face’, for how they think they could deliver a better member experience with your support.
3. Reduce Absenteeism
The average shift worker is estimated to cost their employer $2,660 (£2,100) per year in absenteeism[v]. This incorporates both the costs of any paid time off for the absentee and the costs of bringing in cover or paying a colleague to do overtime for them. It doesn’t take into consideration all the running around you have to do to get this sorted or the opportunity cost of spending your time doing that instead of driving your business forward.
In many cases absenteeism is unavoidable, but in a significant proportion the root cause is being at work itself, such as stress and wider mental health issues; which now account for greater than one-in-every-two sick days taken[vi].
It goes without saying that happy, engaged employees are less likely to play truant. If you can identify common sources of stress, unhappiness, and dissatisfaction within your workforce you can take steps to reduce these and the impact they are having on your staff and, ultimately, your members.
4. Improve Member Experience
Happy staff = happy members. By reducing staff attrition and absenteeism and increasing productivity, creating engaged staff who feel part of a community and enjoy being at work, there is no doubt your member experience will improve as a consequence and you will see this materialise in your Net Promoter Score.
Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.