An effective onboarding procedure can improve staff satisfaction, and increase retention rates and productivity levels. However, tracking the efficiency of the process is easier said than done. Therefore, here are a few vital metrics that can help companies on this mission.

Why Should Companies Measure the Effectiveness of the Onboarding Process?

Measuring the effectiveness of the procedures will provide businesses with an indication of how successful their onboarding is. An efficient process can help with the following factors:

• Improving retention rates: G2 compiled a report consisting of a comprehensive list of onboarding statistics. One statistic shows 69% of employees stay with an organization longer if they experience an excellent onboarding process. Companies focusing on factors that increase their onboarding procedures can reduce first-year turnover rates.
• Enhancing productivity and work quality: An excellent onboarding process shows new hires how to complete their daily tasks efficiently. This increases the quality of work they deliver. According to another statistic on G2, new-hire productivity levels can increase more than 70% if brands have strong onboarding procedures.
• Increasing new hire satisfaction: An onboarding process should make the new hire feel welcome and more confident in their abilities. Research shows that in the first three months of employee onboarding, they must build strong relationships with the enterprise, colleagues and management. The new hire should feel excited to start and assured they are armed with the necessary skills to do their job well.

Challenges In Measuring Onboarding Effectiveness

Measuring the effectiveness of a company’s onboarding procedures is not an easy task. Most organizations choose to ask new hires how the process was for them. While this is undoubtedly something businesses should do, it alone is not a good indication of how effective the procedure was.

The problem with new hire feedback is they are often afraid to be 100% truthful. In some cases, the employee might not feel confident enough to say what parts they did not like or is uncertain how to phrase it in a way that does not sound disrespectful. Other times, they may simply be shy.

Another reason is they are so excited to start their new job that they don’t realize any negative factors they encounter. Therefore, employers should utilize other measures to identify the effectiveness of their onboarding process.

This is where key performance indicators make an appearance. Tracking different essential metrics can give the organization a clearer and more accurate representation of the procedures’ effectiveness. That said, companies should know what metrics they could track to gain the most benefit.

The best place to start is to look at the goals the organization wants its onboarding to achieve. This could entail:

• Engaging new employees from the start
• Increasing new hires’ productivity levels. Research has shown employee productivity could rise up to 20% if they are satisfied within their roles
• Decreasing the number of employees that leave the organization in the first year
• Increasing the satisfaction of new hires
• New hires feeling welcomed and clearly understanding the company’s culture
• Getting new employees up and running as fast as possible.

5 Ways Companies Can Measure Onboarding Effectiveness

According to another statistic on G2, 36% of managers say measuring onboarding effectiveness is one of the three biggest challenges they face. That said, while it is challenging, it is not impossible. Here are five metrics that can help enterprises with this.

1. Track Onboarding Training Completion Rates

Most companies’ onboarding processes involve their staff completing some form of training. One way to identify the effectiveness of their procedure is to pay attention to the percentage of staff that finishes it. Organizations can usually find this in the reporting section on the onboarding application they use.

A low completion metric can highlight a few potential issues:

• Staff do not know what courses are mandatory.
• The delivery of training is too challenging to comprehend.
• The coursework does not entice and engage staff.

To rectify these problems, brands can implement measures that clearly indicate which materials new staff need to complete. They can also update the coursework to ensure it is easy to understand and engages new hires.

2. Test What New Employees Have Learned

Another great way to measure the effectiveness of an onboarding process is to test employees on the skills they have learned. After staff have undergone their training, businesses can ask them to complete quizzes. Organizations must ask their staff to answer honestly.

One essential question the quiz should include is how they would complete their job activities. If staff are unsure how to tackle day-to-day operations, it could indicate the onboarding process requires more work. 

Another factor to consider is whether new hires have difficulty answering the same question. This could indicate an area requiring more explanation. Companies should look at the responses they get and determine how they can better their training and onboarding procedures.

3. Note When Workers Reach Standard Performance for Their Roles 

The next metric brands could track is the rate at which new hires reach standard performance for their role. The primary intention of a strong onboarding process is to get employees up to speed as fast as possible.

The time it takes a new hire to settle into a position depends on their job. That said, if the onboarding process is very effective, it can decrease the time dramatically. To help track this, find out whether the employee performs as expected. 

Compare the performance of new hires to veteran employees. After a certain period, new workers should start completing their work on roughly the same level as staff that have been with the company for a few years.

4. Analyze New Hire Turnover Rates

One of the best metrics organizations can track is the turnover rate of new hires. If many employees leave in the first year of employment, it could indicate serious issues with the onboarding process. Try comparing exit interviews with the training to see if there are areas that could improve.

5. Utilizing the Power of Feedback

As stated, companies should ask for new hire feedback. Here are a few suggestions on what companies could ask:

• Did the onboarding process make the new hire feel welcome?
• Do they feel adequately prepared for their new role?
• Is there something they wish were explained in more detail?
• Was the training delivered engagingly and enticingly? 
• What areas were difficult to understand?
• Do they clearly understand what the company culture is about?
• Did the onboarding process make them feel part of the team?
• What things do they wish were included in the training to make it better?

While new hire feedback is certainly valuable, the business should also talk to the employee’s colleagues and managers. This procedure is called 360° feedback because brands taking this approach can obtain insight into how the new hire has performed. Higher-ups and co-workers could bring up issues the new worker struggles with. These problems could indicate areas companies need to focus on in their onboarding process.

Ensuring an Effective Onboarding Procedure

An effective onboarding process can provide many benefits. While it is not an easy task to achieve, it is one worth pursuing. Tracking these metrics will ensure the onboarding procedure is efficient and provides the most value to the organization, as well as the employees.