Parasol unfurls eNPS results in public (gasp)
The UK’s daintily named Parasol Group – an umbrella company (see what they did there?) that claims to be one of the UK’s biggest employers – has publicly shared the results of its eNPS (employee Net Promoter) survey on its blog.
[caption id="attachment_5194" align="alignright" width="248"] Parasol Group: It's an umbrella company, silly.[/caption]
This is interesting to us because despite examples of employee engagement driving higher operating margins, few businesses use Net Promoter to regularly measure employee loyalty, and less still share those results publicly.
In its post, the contractor-employment organisation starts by providing statistics on how happy employees are with different aspects of working for Parasol – a good way to demonstrate to employees (and potential employees) the high standard of support it offers.
Next, it notes that a small percentage of employees would consider working for another umbrella group on their next assignment. It asks these people to let Parasol know the reasons why and anything they could do to improve. Again, a good demonstration of its willingness to listen and learn.
Finally, it says there is a slight decline in NPS compared to last year, but notes that its score of +30 would have ranked it fifth in the most recent Net Promoter industry benchmark report for the UK. This is where we feel the announcement falls short. While we understand that as an umbrella company, Parasol's employees could be considered customers in some senses of the word, comparing scores with an unrelated customer-focused Net Promoter report that measures companies across industries strikes us as a case of comparing apples to oranges.
While it's fantastic to see Parasol sharing its eNPS results, we believe the company could have been better served by acknowledging there has been a slight drop in its score (check), providing the reasons why loyalty has dipped slightly from the previous survey (not explained) and outlining the steps it is taking to turn the situation around (also not explained).
This would have had the following benefits:
- Communicated to employees that their feedback is being heard and acted on and highlighted the fact they employees are active stakeholders in the business.
- Helped increase retention.
- Given the organisation a publicly visibly roadmap to improve the employee experience that would provide the internal impetus to make the necessary changes.
We consider ourselves a high 'Passive' on this particular announcement, with the potential to be nudged into Promoter territory the next time around. Parasol blog
The lowdown on Lowe’s high NPS
In the battle of the US home improvement giants, Lowe’s Net Promoter Score leads Home Depot across both male and female shoppers.
However, Home Depot leads rival Lowe’s in key areas including sales growth and stock price. Home Depot also has more male shoppers, which is significant because male shoppers tend to spend over than a third more than their female counterparts. So if Net Promoter can be considered as a forward indicator of growth, what is going on?
According to Pam Goodfellow of Prosper Insights and Analytics, one reason may be that among males, store location is a major factor of Home Depot’s attraction, and Home Depot has around 15% more stores than Lowe’s. And although Lowe's has a strong lead in NPS among female shoppers, its lead among the more lucrative male shoppers is less pronounced.
The conclusion? While Home Depot is leading many key indicators now, if Lowe’s can continue a long term approach to nurturing customer loyalty and expanding its retail presence, it may not be much longer before its organic growth starts to outpace its great rival. Stay tuned for future developments! Forbes
- At its earnings call, property managers FirstService revealed that it uses Net Promoter to measure its service quality and employee loyalty. Seeking Alpha
- Freight shuttle service FW Trucking has begun its first Net Promoter customer feedback survey. Press release