7 Ways to Measure the Effectiveness of an Onboarding Program

Kelly Carmody, Field Marketing Manager, SilkRoad
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“According to the 2017 Strategic Onboarding Survey Report by HR Daily Advisor and SilkRoad, 45% do not evaluate their onboarding programs.”

The ultimate goal of onboarding is to enculturate, enable, and connect employees to success. Its impact can be felt throughout the employee life cycle – from first touch to last touch. We must measure strategic onboarding programs and their ability to drive positive business outcomes.

Onboarding technology allows companies to create data points at several different intervals during the onboarding process – first week, 3 months, 6 months, 1 year, after transitions (promotions, transfers, family or sick leave, mergers, acquisitions, etc.), and offboarding.

Measuring an onboarding program uncovers valuable insights into the employee experience and shows if employees are getting the knowledge and resources they need to be successful at the moment they need it. It can even uncover if they feel fulfilled and invested in the organization’s success.

7 Ways to Measure the Effectiveness of an Onboarding Program

Turnover Rate:

Measuring the turnover rate, especially within the first three to six months is crucial to protecting your recruitment investment, employee morale, and overall organizational productivity.

Employee Productivity Rate:

The employee productivity rate measures workforce efficiency over time.

Performance Improvement Plan:

# or % of new hires on a performance improvement plan.

This should be benchmarked over time as you introduce a strategic onboarding process that incorporates feedback, check-ins, and goal setting. This metric also enables you to take a ‘pulse’ of new hire performance as you introduce other people initiatives such as buddy programs and affinity groups.

New Hire Survey Scores / Feedback

Organizations can stand to uncover highly valuable insights into their onboarding program and culture by soliciting feedback from new hires and employees going through transitions. This can be done through surveys or multi-directional feedback and check-ins.

Employee NPS (Net Promoter Score)

Similar to the net promoter scores that many retail outlets use with their customers, the eNPS or employee net promoter score is a ranking an employee gives on a scale of 1-10 as to how likely they are to recommend their employer as a place to work.

Exit Interview Feedback

Many companies conduct exit interviews, giving employees the opportunity to discuss their employment experience. Managers and/or HR can spend time with the employee as well asking them the reasons they left and possibly if they would consider returning in the future.

Employee Lifetime Value

According to the FORUM for People Performance Management and Measurement at Northwestern University, employee lifetime value is defined as a quantitative measure of the long-term contribution an employee makes to an organization.  Put simply, “the value of an employee is best represented by specific measurable flows of money to an organization that can be directly attributed to the employee’s performance.”

Combined, all of these metrics will give you the insight into the trends and outcomes of your people initiatives that can be leveraged to drive positive business outcomes. Ultimately, they’ll help you to optimize your employer value proposition and enable you to be more competitive within today’s talent economy and the overall marketplace.

To read more findings from the 2017 Strategic Onboarding Survey Report by HR Daily Advisor and SilkRoad, click here.

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