Best KPIs to measure onboarding performance

Onboarding is part of an employee’s journey which shapes the rest of the experience at work. An effective onboarding process is the only way to ensure that new employee is well-transitioned into the company. One of the efficient ways to determine whether their onboarding is successful or not is to use key performance indicators (KPIs onboarding) to track the performance.

Key performance indicators are more than just a number. They are quantifiable metrics that enable the management to assess the performance of onboarding. It is also very significant to determine the right kind of indicators as it benefits in achieving the results more quickly.

KPIs Onboarding

To measure the quality of the onboarding process, organisations need to assess the performance of this process. The key performance indicators listed below will help to do this.

Employee Lifetime value

It is a quantitative measure that determines the long-term commitment and contribution of an employee in an organization. It is also known as the total net value that an employee brings to their workplace. Companies calculate its value to find out their performance of onboarding.

The following diagram illustrates the employee life cycle.

employee life cycle

According to this concept, the employee starts in the organization with zero productivity. As time goes by, his productivity reaches fully contributing where he is at the highest level of his efficiency. Moving forward based on his so far experience in the organization, he will now question whether he should leave or not.

This lifecycle indicates the performance of onboarding. If the onboarding process is effective employees will stay and if it’s not, then they will leave.

Optimum level productivity

Another effective way to calculate the performance of onboarding is the cost of getting to the optimum level of productivity. Analysing the performance requires the collection of data. The more data is collected, the more it will become easier to perform various calculations. The cost includes the total cost of advertisement, recruiter fee, background check, time spends training and interviewing training cost, and so on.

The formula to calculate this cost is as follows:

Cost of optimum productivity level = Cost of recruiting + cost of training

Net performance score

Net performance score tells the employee engagement rate. It highlights the number of employees who are committed to their work and are highly passionate. New-hire reaches such a level with the help of an effective and efficient onboarding process.

Using the engagement indications such as absenteeism, turnover, productivity, profitability, etc, we can simply calculate the net performance indicator.

Net performance score = Percentage of Promoters – Percentage of Detractors

KPIs for Onboarding

New hire turnover

Poor onboarding process can make organizations lose their new hires. The new hire turnover metrics helps in calculating the number of new hire employees who resigns from their job within the first year. This indicator is highly useful as it is not only in evaluating the onboarding performance but also in determining the success of their recruitment efforts. Following is the formula for the new hire turnover ratio:

New hire turnover Ratio = (Number of terminated new hire / Number of employees terminated) x100.

Onboarding satisfaction survey

Another effective key performance indicator to evaluate the performance of the onboarding process is through gathering feedback from a new hire. Organizations should keep good track of their feedback in the first month, first three months, first six months, and after a year.

The survey may include both open-ended and close ended questions which will allow the HR manager to know their performance of onboarding. This survey is also helpful in knowing which area needs more improvement.

Training completion rate

The organization offers training to new hires which they are required to complete at their own pace. The high completion rate shall indicate the quality of the training and onboarding process. If the onboarding process is engaging end effective enough, then it shall encourage the new hire to finish their training early. This further determines the new hire’s engagement, motivation, and satisfaction level as well.

In conclusion, key performance indicators act as a measure of the onboarding program’s health. They provide the organization with a holistic view with the help of data-driven insights The sole objective of assessing your employee onboarding process is to find the lacking and then work on improving it. This method shall ensure new hires’ long-term success in the organization.


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Onboarding KPIs are quantifiable metrics used by management to assess the performance of the onboarding process and ensure a successful transition of new employees into the company.

The Net Performance Score measures employee engagement and is calculated as the percentage of promoters minus the percentage of detractors. It indicates the success of the onboarding process in engaging new hires and motivating them in their work.

Now you know how KPIs onboarding can be helpful. Check out some of our other articles such as What is an Employee Onboarding Microlearning Program and Employer Branding for Talent Acquisition Strategy.

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