The Employee Net Promoter Score: A (new) Metric for Assessing Your Workforce Engagement Profile

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1 2017 California Higher Education Collaborative Conference The Employee Net Promoter Score: A (new) Metric for Assessing Your Workforce Engagement Profile Angela Song, PhD Sr Director, Organizational Assessments and Strategy Office of Operational Strategic Initiatives UC San Diego October 24, 2017

2 10,000 data geeks unite!

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4 Data à insights à actions à outcomes Business processes optimized Workplace climate enhanced Reduced costs Increased efficiency Satisfied customers Satisfied and engaged employees

5 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

6 The Net Promoter Score (NPS) On a scale of 0 to 10, how likely are you to recommend this company s product or service to a friend or a colleague?

7 How the Net Promoter Score is calculated On a scale of 0 to 10, how likely are you to recommend this company s product or service to a friend or a colleague? Note that this one-question does not give any detailed actionable information; it is a high level metric of customer loyalty and positive sentiment

8 Net Promoter Scores Industrial Standards

9 Added the NPS to the Faculty and Staff Customer Satisfaction Survey Started at UC San Diego in 1993 with 11 business affairs departments Confidential responses 8 Satisfaction/benchmarkable questions Up to 4 additional supplemental questions Open-end comments, and a burning question Recognition of departments or teams for exceptional customer service Eight Universities participating in the benchmarking program In 2016, 350 departments/programs surveyed and 252 included the NPS as one of the benchmarking metrics

10 Example of Benchmarking of the NPS Customer Satisfaction Survey

11 Higher Education Net Promoter Score Scale by Service Category Range of NPS Across University Customer Satisfaction Survey Cohort for 252 survey units Average = 19 Industrial Av: 33

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

13 UC San Diego s Survey - History 1997: *Paper survey *127 questions *1,500 staff, one Vice Chancellor area 2003: *First on-line survey with Spanish version *52 survey questions *Anonymous *4,490 staff employees, 4 VC areas * 52% response rate 2015: *8,000 staff, 10 VC areas *66% response rate *Used Factor Analysis to Examine and recategorize 52 questions into key dimensions *Developed enps 2016: Applied enps to survey data analysis 2017: Three universities use the Staff@Work Survey tool and are partners in the benchmarking program (more joining in 2018)

14 Survey Anonymous (versus confidential) ,140 respondents; 66% campus-wide. <1.0 Margin of Error.

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

17 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 important to satisfaction (per regression analysis)

18 Applying the Net Promoter Score to the employee engagement survey Our survey tool Survey) had a top level question re recommending the University. We changed this: To this:

19 Applying the Net Promoter Score to the Employee Engagement Survey NPS = 42% - 24% = 18 What does this mean? According to NPS research, any score that is above zero is good, anything above +50 is excellent, and over +70 is considered world-class.

20 This just didn t make sense when the NPS was applied to a work satisfaction survey

21 Issues applying the NPS to employee engagement NPS is used for evaluating a company s products and/or services NPS has never been applied to an employee workforce NPS omits scores 7 and 8 on the scale, which is normally considered high in an employee engagement survey NPS is limited in actionable information Employee engagement and satisfaction is more complex (and personal) than customer s feelings about a company s product or service

22 We combined the score distributions of the two top level questions for a more complete analysis: Overall Satisfaction and Would You Recommend?

23 Satisfied Promoters 4 or 5 on the Satisfied Employee Question; 7 to 10 on the Likelihood to Recommend Question Satisfied (Engaged) Promoters (high satisfaction/likely to recommend)

24 Dissatisfied Non-Promoters 1 or 2 on the Satisfied Employee Question 0 to 4 on the Likelihood to Recommend Question Dissatisfied (Disengaged) Non-Promoters (low satisfaction/not likely to recommend)

25 A new metric is born: Employee Net Promoter Score (enps) Satisfied Promoters = 37/48 = 77% Dissatisfied Non-Promoters = 3/48 = 6% enps = 77% - 6% = 71

26 What does an Employee Net Promoter Score of 71 mean? Based on data from three universities, we developed the following enps scale: Below 40 Low Marginal Good 80 & Above Excellent

27 UC San Diego s Employee Net Promoter Score (enps), 2016 What this means: 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

28 Considerations in applying the enps enps is not intended to label or compartmentalize employees It is important to have trend data to verify reliability of the scores Beware of small sample size (protecting anonymity) What about all of the other folks not in the those two groups?

29 UC San Diego s Employee Net Promoter Score (enps), 2016 What about all these in the yellow highlighted area?

30 Satisfied Non-Promoters 4 or 5 on the Satisfied Employee Question 0 to 4 on the Likelihood to Recommend Question

31 Dissatisfied Promoters 1 or 2 on the Satisfied Employee Question 7 to 10 on the Likelihood to Recommend Question

32 Passives 3 on the Satisfied Employee Question 5 or 6 on the Likelihood to Recommend Question

33 A Complete Workforce Profile Matrix

34 Strengths and Opportunities Strengths

35 Summary NPS is a customer loyalty metric commonly used in industry Based on the NPS method, we developed a metric called Employee Net Promoter Score (enps) to include in our Staff@Work Survey In addition to the Recommend question, enps requires an Overall satisfaction question to give a complete picture. Work engagement is more complex than feelings about a product or service Based on this enps profile, we can further drill-down analyzing relationships and drivers based on other survey questions to develop specific strategies Additional research is underway to further understand the correlation between enps and outcomes. For example, does a low enps lead to higher turner, lower productivity? Quantitative Analysis Ongoing Anecdotal Evidence Supports