Onboarding is an integral part of the employee journey; it influences the entirety of an individual’s experience at your company. As such, it’s imperative to devise an effective onboarding process that can help set up your new recruits for success to follow. Understandably, the first few days can be a bit overwhelming for a fresh hire. It’s critical to offer them support and make them feel at home.
You should develop a robust onboarding program that can empower your hires to achieve their highest levels of productivity. In determining the effectiveness of this program, it is critical to measure specific metrics along the way, in order to understand the success of your concerted efforts.
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Why Is Measuring Onboarding Metrics Important?
Measuring onboarding KPIs is important as it will help you with the following:
Uncovering Issues in Your Employee Onboarding Process
Measuring metrics will enable you to glean useful information, which can in turn be utilized to diagnose problems in the onboarding phase of the employee lifecycle. Once done, you can determine ways in which to fix the issue.
Improving the Effectiveness of Your Onboarding Process
You can use data to enhance the effectiveness of your onboarding process, empowering fresh hires to perform at an optimal level from the outset.
Minimizing Turnover Rate
A good onboarding program will prevent the likelihood of early turnover. On the other hand, if a fresh hire is exposed to a negative onboarding experience, it necessarily leads to detrimental outcomes throughout your organization. Properly applied, the information obtained from reporting metrics will result in a low turnover rate.
Four Metrics to Measure for Improving Onboarding Effectiveness
To determine the effectiveness of your onboarding process, it is vital to track key onboarding KPIs. Once in hand, this data will convey a picture of how solid your onboarding program is and what you need to do to further improve it. With that said, here are four onboarding metrics that you should consider:
Time to Productivity
Whether you rely on your in-house recruitment solution or partner with a staffing agency, it is essential to measure this metric to determine the time it takes for new hires to become operational and productive. This KPI can and should vary between roles, seniority, and teams. For instance, if you are measuring the KPI for a sales role, productivity will indicate when the salesperson is equipped with the right tools and knowledge to execute a sale.
To obtain an accurate measure of this metric, work closely with hiring managers, asking them to identify what criteria would indicate that new hires are performing their respective tasks productively. If you wish to find out the average time to productivity for your company, apply the following formula:
Time to Productivity: Total Number of Days for Fresh Recruits to Be Productive / Total Number of New Hires
New Hire Turnover
This is among the most important metrics for determining the effectiveness of your onboarding process. New hire turnover calculates the number of workers who quit their job within the first year. It is vital to maintain the new hire turnover rate as low as possible because it usually takes multiple months for a fresh recruit to become productive.
With this in mind, be sure to eliminate all negative stressors that might promote a toxic work environment Here is how you can calculate this metric:
New Hire Voluntary Turnover Rate: [Number of Fresh Recruits Who Left the Company During a Period / Number of New Recruits from that Same Period] x 100
New Hire Involuntary Turnover Rate: [Number of New Hires Terminated in a Specific Period / Number of New Hires in the Same Period] x 100
Training Completion Rate
The training completion rate represents how many fresh hires have completed their required training. The training is typically given to new recruits with the goal of improving their productivity.
A low training completion rate could signify a potential problem with the quality of the training program. It might also indicate the effectiveness of the rollout of training modules. For calculating the training completion rate, use the following formula:
Training Completion Rate: Number of Fresh Recruits that Haven’t Completed their Training / Total Number of Fresh Recruits
Retention Rate of New Hires
After you have attracted top employees with the help of your efficient talent acquisition strategies, retaining them will be your next major challenge. The retention rate of new recruits measures how many resources stayed for a given period of time.
If you want to improve the retention rate, you will have to make sure to deliver an excellent employee experience to make the fresh hires feel comfortable and valued. You have to make sure to live up to the promises and offer your talent exactly what attracted them to your company. You can calculate the retention rate with this formula:
New Hire Retention Rate: Number of Fresh Recruits Who Stay with the Company for At Least 18 Months in a Specific Period / Number of Fresh Recruits in the Same Period
Conclusion
Measuring onboarding metrics is the best way to determine whether the new hires are comfortable and productive in their new roles. Tracking onboarding KPIs is integral for every business including mortgage staffing agencies to ensure that they have hired the right talent and know if they need to make adjustments to boost employee morale.
