Dell’s Employee Satisfaction Plummets: eNPS Halves Amid Culture Shifts and Layoffs

Dell Technologies is confronting a notable decline in employee satisfaction, as evidenced by its internal Net Promoter Score (eNPS) which has experienced a substantial drop for the second consecutive year. This downturn represents nearly a 50% reduction in the score over two years, indicating potential shifts in internal culture and workforce morale amid broader organizational transformations and market adjustments.

• Dell’s eNPS dropped to 32, down from 48 last year and 63 two years prior.
• The decline is attributed to significant workforce reductions, stricter return-to-office policies, and perceived cultural shifts.
• Dell announced 6,650 job cuts in February 2023 and a total workforce reduction of 25,000 over two years.
• A new policy in March requires most staff near offices to work in-person five days a week.
• Despite overall eNPS decline, Dell’s leadership net promotion score remains high at 76.
• Dell is pursuing advanced initiatives, including an AI-powered supercomputer project with NVIDIA and the US government.

Measuring Employee Sentiment: A Steep Decline in eNPS

Dell’s Chief Human Resources Officer, Jenn Saavedra, confirmed in an internal video update that the company’s employee net promoter score (eNPS) has fallen to 32. This marks a significant regression, following a previous decrease from 63 to 48 last year, as detailed in a transcript obtained by Business Insider. The eNPS, a crucial metric derived from Dell’s annual “Tell Dell” survey, is designed to gauge employees’ willingness to recommend the company as an employer. Saavedra acknowledged that the current score falls “below the benchmark” Dell aims to achieve, underscoring the gravity with which the company views this internal feedback.

Drivers of Dissatisfaction: Workforce Reductions and Return-to-Office Mandates

Several interconnected factors have reportedly contributed to this sharp decline in employee morale, as cited by Dell employees. These include ongoing workforce reductions, stricter return-to-office (RTO) mandates, the integration of artificial intelligence into operations, and a broader perceived shift in company culture. In February 2023, Dell announced the elimination of 6,650 jobs, constituting approximately 5% of its global workforce. This strategic decision was attributed by co-Chief Operating Officer Jeff Clarke to “eroding market conditions with an uncertain future,” a statement reported by Bloomberg News. Furthermore, the company’s total workforce has reportedly decreased by 25,000 employees over the past two years, according to a March SEC filing referenced by Business Insider, illustrating a significant overall downsizing. Adding to the internal pressure, a policy enacted in March now mandates that staff living near company offices return to in-person work five days a week, a change that has undoubtedly impacted employee sentiment and work-life balance perceptions.

Leadership Endorsement and Strategic Responses

Despite the overall dip in employee satisfaction, Dell’s internal metrics revealed a strong positive sentiment towards leadership. The leader net promotion score stood impressively at 76, with employees commending leaders for their collaborative and supportive approach. In response to the concerning eNPS findings, Saavedra has outlined clear plans for improvement. These initiatives focus on enhancing transparent communication across all levels and fostering more frequent, meaningful conversations between teams and their leaders. The objective is to proactively address employee concerns, rebuild trust, and ultimately boost morale.

Navigating Innovation Amidst Internal Shifts

These internal workforce challenges coincide with Dell’s active navigation of significant technological shifts and strategic partnerships. For example, in May, Dell and NVIDIA announced a pivotal collaboration with the U.S. government to launch a groundbreaking AI-powered supercomputer next year. This ambitious initiative, supported by the Trump Administration, aims to advance critical research at the Department of Energy. Such high-profile collaborations and commitments to leading-edge innovation underscore Dell’s strategic focus on shaping future technological landscapes, even as it addresses complex internal workforce dynamics.