People Leadership: What is your key selection Metric?
In today's workplace, the effectiveness of leadership is increasingly taking importance beyond traditional metrics such as qualifications and experience. While a strong resume can indicate past achievements, it does not capture the essential elements of employee engagement and team dynamics. This is where Employee Net Promoter Score (eNPS) becomes a critical metric in the selection and evaluation of people leaders.
Understanding eNPS
eNPS is derived from a single question asked to employees: “On a scale of 0 to 10, how likely are you to recommend this company as a place to work?” Responses usually categorized as follows:
The eNPS is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, if 70% of employees are promoters and 10% are detractors, the eNPS would be 60.
The Importance of eNPS in Leadership Selection
Correlation with Employee Retention
Research indicates that organizations with high eNPS scores tend to experience lower employee turnover. According to a study by the Harvard Business Review, companies with an eNPS of 50 or higher can reduce employee turnover by 30% compared to organizations with lower scores. Retention is crucial for maintaining knowledge within the company, reducing recruitment costs, and fostering a stable team environment.
Quick question: What was the eNPS score for your most recent leadership hire in their previous role?
Impact on Team Performance
Leaders with high eNPS scores often manage high-performing teams. A study conducted by Gallup found that teams with highly engaged leaders see 21% greater profitability. This is further supported by a 2021 report from McKinsey & Company , which highlighted that organizations with high employee engagement scores outperformed their peers by 147% in earnings per share. By evaluating candidates based on their eNPS, organizations can select leaders who not only maintain employee satisfaction but also drive performance.
Quick question: When was the last time you as a leader evaluated the strategic, and 'irrelevant' feedback provided?
Indicators of Emotional Intelligence
Emotional intelligence (EQ) is a key component of effective leadership. I've personally observed this to be the case that in most predominantly male-led environments, this is de-prioritized in leadership placing a significant bottle neck on transformation and adaptiveness - perhaps a topic we should be exploring. This not to say it does not occur in female-led organizations
Leaders with high eNPS scores typically possess strong emotional intelligence skills, including empathy and relationship management. A Talentsmart study found that 90% of top performers have high EQ, which is essential for navigating complex team dynamics. By using eNPS as a selection criterion, organizations can prioritize candidates who demonstrate the ability to engage and inspire their teams effectively.
Data-Driven Decision Making
Utilizing eNPS in the hiring process adds a layer of data-driven decision-making. For example, a company that regularly tracks eNPS can use historical data to identify trends and correlations between leadership styles and employee engagement. If data shows that a particular leader’s tenure corresponds with declining eNPS scores, it signals a need for reevaluation. According to LinkedIn , organizations that leverage data in their hiring process see 30% more qualified candidates and significantly better retention rates.
How to Implement eNPS in Leadership Selection
➡️ Integrate eNPS Metrics into Performance Reviews
Regularly track eNPS scores for teams and evaluate leaders based on their teams’ responses. Use this data as part of the performance review process to ensure that leadership effectiveness aligns with employee engagement.
➡️ Assess eNPS in Leadership Promotions
When considering candidates for leadership positions, include eNPS scores in the evaluation criteria. High eNPS scores should weigh heavily in favor of promoting individuals who demonstrate their ability to maintain an engaged workforce.
➡️ Gather Qualitative Feedback
Combine eNPS scores with qualitative feedback to provide a more comprehensive picture of leadership effectiveness. Collect open-ended responses from employees to understand the specific aspects of leadership that influence their engagement scores.
➡️ Establish eNPS Improvement Goals
Set eNPS improvement targets for current leaders as part of their development plans. Providing coaching and resources to help them enhance their leadership skills can drive both personal and organizational growth.
In today's competitive landscape where employee engagement directly correlates with organizational success, eNPS serves as a crucial metric for assessing leadership effectiveness. It provides actionable insights into employee satisfaction, retention, and overall team performance.
Before your next People Leader Hire - definitely consider this!