Increase onboarding quality with metrics & KPIs
Onboarding often sets the tone for the rest of the time in the company. Good onboarding ensures that new employees are quickly integrated socially and professionally into their new environment. But how can you tell if onboarding is a success for employees and managers? We present helpful metrics that you can use to measure the quality of your onboarding.
Why you should measure your onboarding
Onboarding is one of the most important stages in the employee lifecycle and has a significant impact on employee satisfaction. However, offering a good onboarding experience means a great deal of administrative effort on the part of the company. For HR and IT managers in particular, the hiring of new colleagues involves a large number of tasks.
But how do I ensure that what was previously developed in the onboarding concept also leads to the desired success? The answer: by measuring the quality of my onboarding process. The right tools for this are metrics and KPIs.
Metrics are directly measurable values or combinations of multiple measurable values. Onboarding metrics help make the onboarding process quantifiable and can represent both the employee and company perspective.
Using metrics it is possible to see
- how efficiently the onboarding processes currently function and where there is potential for optimization.
- how satisfied employees are with the induction process.
KPIs (Key Performance Indicator) are, as the name already indicates, key performance indicators for the company. Which key figure serves as a KPI is therefore determined by the strategic goals. A KPI shows the progress made in achieving the respective goal.
Basic goals for induction are:
- Social integration
- Professional integration
- Create a welcoming culture
- Show appreciation
Which key figures should you keep an eye on?
The key onboarding metrics
- Rate of successful settings
- Early turnover rate
- Time to environmentally operational
- Time to fully operational
- Number of trainings & feedback meetings
- Takeover rate
- Onboarding Experience
1. rate of successful settings
The ratio is the number of people who take up the position and the number of people who have signed an employment contract. The ratio allows conclusions to be drawn about recruiting, but can also be used as an onboarding metric. This may sound irritating at first. But it becomes clear when you realize that onboarding doesn't just start with the 1st day of work, but already with the signing of the contract (You can learn more about the onboarding phases here).
2. rate of early turnover
However, if employees leave the company early, this is often an indicator of low employee satisfaction. This in turn can indicate either problems in recruiting (possibly due to false promises) or in onboarding (e.g. lack of support). If you notice a high rate of early turnover, you should try to understand the reasons for this. An offboarding conversation is a good way to learn more about the reasons.
3. time to environmentally operational
The term "time to environmentally operational" refers to the time required to provide new employees with the workplace equipment and all the work tools they need to get started. Work equipment includes everything that is needed to perform a task in the best possible way. This is not just a desk, office chair or laptop. The notepad, company cell phone or company car are also among the necessary work tools.
In many companies, procuring all work equipment still takes an enormous amount of time. Appropriate suppliers must be found and punctual delivery organized. Technology has to be configured and integrated into existing MDM solutions. For HR and IT managers or office managers, all of this leads to a high expenditure of time.
Productive employees from day 1
With Lendis OS, you can optimally equip employees with just a few clicks - whether in the office, home office or for remote work. You reduce the effort for HR & IT and save a lot of time.
4. time to fully operational
The key figure "time to fully operational" indicates how long it takes until new employees are fully operational. This value is important because your employees can only perform to their full potential from this point on.
5. number of trainings & feedback talk
In this respect, the key figure recorded is how many such measures were actually required in the end to make newcomers fit for their task. As a result, it provides indications
- on the quality of training and talks
- Whether the previously selected number corresponds to reality
- on the fit of the position and the employee hired
6. takeover rate
A low adoption rate may indicate that the onboarding process was not sufficient to enable the new team members to
- well prepared for their task or
- to integrate them optimally into the company and the team.
7. onboarding experience
The NPS is then calculated as follows:
Calculation of the NPS
NPS = Promoters (in percent of all respondents) - Detractors (in percent of all respondents)
Improve onboarding process with metrics and KPIs
If you determine on the basis of your key figures that there is a need for optimization, it is important to find out where the causes lie. Once it is clear what is causing the poor values, you can define improvement targets together with your team.
Based on the goals, concrete measures are then developed to achieve these goals. A time frame should always be defined for achieving the goals. This period should not be too long. Quarterly or half-yearly targets are usually suitable.