What is NPS and why is it relevant for staffing agencies?
Net Promoter Score (NPS) is a method for measuring customer satisfaction and loyalty, developed by Fred Reichheld and Bain & Company. The core question is simple: 'How likely are you to recommend us to friends or colleagues?' on a scale of 0 to 10.
For staffing agencies NPS is particularly relevant because the industry runs on relationships and trust. Both candidates and clients need to recommend your agency, to other candidates and to other companies. A high NPS is directly correlated with growth through word of mouth.
But NPS also has limitations when used incorrectly. In this article we explain how to use NPS correctly for your staffing agency.
How do you calculate NPS?
After asking the recommendation question (0-10) you divide respondents into three groups:
- Promoters (score 9-10): enthusiastic fans who actively recommend your agency
- Passives (score 7-8): satisfied but not enthusiastic, vulnerable to competition
- Detractors (score 0-6): dissatisfied respondents who can damage your reputation
Example: 60% promoters, 10% passives, 30% detractors → NPS = 60 - 30 = +30
The NPS formula: NPS = % Promoters − % Detractors. The score ranges from -100 (everyone is a detractor) to +100 (everyone is a promoter).
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What is a good NPS for a staffing agency?
NPS benchmarks vary strongly by industry. For the staffing industry these are the guidelines:
- Below +10: concerning, there are structural issues with service delivery
- +10 to +30: average, there is room for improvement
- +30 to +50: good, you score above the industry average
- +50 or higher: excellent, you are among the top of the industry
Important: always compare your NPS with your own historical data. An increase from +22 to +35 in 6 months is more valuable than an absolute score of +35 without context.
Measuring NPS for candidates vs. clients
Staffing agencies have two audiences: candidates (temp workers) and clients (companies). Both groups must be measured separately: they have fundamentally different experiences and needs.
NPS for candidates
Measure candidate NPS at critical moments: after intake, after the first week of work and at contract end. Candidate NPS reflects the quality of your recruiters, the clarity of your communication and the match between candidate and role.
NPS for clients
Measure client NPS after each placement and each quarter. Client NPS reflects the quality of your candidates, the speed of your service and the value added by your account managers.
The 3 biggest mistakes in NPS measurement in staffing
- Measuring only annually: an annual NPS gives a snapshot, not insight into trends. Measure continuously at touchpoints.
- Not asking an open follow-up question: an NPS score tells you how satisfied someone is, but not why. Always add an open question: 'What is the main reason for your score?'
- Not following up detractors: a low NPS score without follow-up is a missed opportunity. Set up automatic alerts so recruiters make contact within 24 hours.
How do you use NPS to improve your staffing agency?
NPS is only valuable if you act on it. Here are the most effective ways:
- 1Analyse open answers from detractors: what are the most mentioned complaints? These are your priority improvement areas.
- 2Compare NPS per recruiter and branch: large differences point to best practices you can spread or issues you need to address.
- 3Activate promoters: candidates and clients with a score of 9-10 are willing to recommend you. Actively ask them for a review or reference.
- 4Set monthly NPS targets: a concrete target (e.g. 'from +28 to +35 in 6 months') motivates teams and makes improvement measurable.
- 5Link NPS to business metrics: analyse whether higher NPS correlates with less dropout, higher renewal rate and more new clients.
Automating NPS with Feedback Analytics
Manual NPS measurement is time-consuming and inconsistent. With Feedback Analytics you automate the full NPS programme: from sending the survey to analysing results and following up on low scores.
Connect Feedback Analytics to your ATS, set the triggers and get real-time NPS dashboards per recruiter, branch and client. Recruiters only receive alerts when action is needed.