A well-structured onboarding program can make the difference between a motivated, engaged employee and one who feels lost or disconnected. But how can you ensure that your onboarding program is effective?
The answer lies in measuring its success through metrics and key performance indicators (KPIs). In this blog post, we will explore the essential metrics to track and how to use this data to make continuous improvements.
Why Use Onboarding Metrics?
In many industries, such as the hospitality business, it’s not just about serving great food or ensuring superior customer service; it's about creating experiences.
And who creates these experiences? Your employees.
This is why onboarding metrics are crucial. They offer concrete data to understand how well new employees are integrating, adapting, and contributing to your business. Without these metrics, you're essentially flying blind, unable to gauge the effectiveness of your onboarding process or its impact on your business.
The 9 KPIs of employee onboarding success
One of the primary goals of employee onboarding is to get new hires up to speed quickly. To measure this, track the time it takes for employees to reach full productivity in their roles.
Start by defining what "full productivity" means for your organization. For example, in the restaurant industry, it could be the time it takes for a server to handle a full section without assistance.
By monitoring time-to-productivity, you can identify bottlenecks in your onboarding process and make adjustments accordingly.
2. Training Completion Rate
Especially in hospitality, where specific skills are needed, the rate at which new employees complete their training is a tangible indicator of onboarding success.
3. Onboarding Satisfaction Survey
How do new hires feel about their onboarding experience? Their perspectives can provide a wealth of information on what's working and what's not.
4. New Hire Voluntary (and Involuntary) Turnover
High turnover, especially soon after hiring, can signal issues with the hiring or onboarding process. Understanding why new hires leave, whether by choice or not, offers critical insights for improvement.
5. Comparable Retention Rate
Employee turnover is a significant concern in service industries. To gauge the effectiveness of your onboarding program, calculate your retention rate among newly onboarded employees. Compare this rate to those who did not undergo onboarding.
A higher retention rate among onboarded employees indicates that your program is helping them feel more connected to the organization and reducing turnover.
6. Employee Retention Threshold Identifying a timeframe, such as 90 days or six months, as a benchmark for new hire retention, can help in understanding the staying power of your onboarding process.
7. New Hire Retention Rate per Manager
This metric reveals how well different managers retain their new hires. It's a powerful tool for identifying strong leaders and areas that need managerial improvement.
8. Employee Engagement
Engaged employees are the backbone of any thriving hospitality business. Measuring engagement levels during and after onboarding can help assess the effectiveness of your integration strategies.
Use surveys or feedback mechanisms to measure employee engagement among newly onboarded staff. Ask questions about their satisfaction with the onboarding process, their understanding of company values, and their overall job satisfaction.
This data can help you identify areas for improvement and tailor your onboarding program to better engage employees.
9. 360-Degree Feedback
Collecting feedback from a range of sources, including peers, supervisors, and the new hires themselves, offers a comprehensive view of the onboarding process's effectiveness.
10. Performance Metrics
Ultimately, the success of an onboarding program should be reflected in employee performance. Monitor performance metrics like customer satisfaction scores, sales numbers, or any relevant KPIs for your industry.
Compare the performance of newly onboarded employees to more experienced ones. If there are significant disparities, it may indicate that your onboarding program needs adjustments to align employees with organizational goals.
A Management Responsibility
When it comes to measuring the success of onboarding in the hospitality sector, there's a fundamental principle that needs to be emphasized: the responsibility lies squarely with the company and its management, not the new employees. This perspective shift is crucial in an industry where a seamless integration of new team members can make a significant difference in service quality and customer satisfaction.
It's About the Process, Not the People
If an employee struggles after their onboarding period, it's easy, yet misguided, to point fingers at the individual. Instead, this should in most cases be seen as a reflection of the onboarding process itself.
Was the training adequate?
Were the expectations and roles clearly communicated?
Did the new hire receive the necessary support and resources?
These are the questions that need answers, not scrutinizing the employee's capabilities alone.
Revising Onboarding: A Path to Improvement
Every time an onboarding process fails to bring an employee up to speed, it presents an opportunity for revision and improvement. This is where management's role becomes critical. It's their duty to dissect what went wrong and why.
Was the onboarding too rushed?
Were there gaps in information or training?
Was there a lack of mentorship or support?
Identifying these gaps allows for a constructive overhaul of the onboarding process, making it more robust and effective for future hires.
Creating a Culture of Support and Growth
Ultimately, the goal should be to create an environment where new hires feel supported and equipped to excel in their roles. This is not just about training; it's about building a culture that values growth, learning, and adaptation.
When the onboarding process is well-structured and managed, it sets the tone for the entire employee journey, fostering a sense of belonging and commitment.
In essence, measuring onboarding success and taking responsibility for its outcomes is a task for the company and its managers. It's a continuous process of learning, adjusting, and improving.
By shifting the focus from blaming new employees to refining the onboarding process, businesses can create a more efficient, engaging, and supportive work environment. This not only enhances employee satisfaction and retention but also directly translates into better customer experiences and business success.