Most Used KPIs in Human Resources
There is no magic formula that can tell you how successful and effective your new hire onboarding process is. There are, however, numerous employee onboarding KPIs that will provide you with valuable information.
We can differentiate between three categories of HR metrics and we will include examples for each of them.
- Employee headcount,
- Cost per new hire (including the cost for onboarding a new employee and the cost of training a new employee)
- Offer acceptance rate,
- New hire turnover rate.
Related to Monetary Value and Revenue
- Revenue per employee,
- HR to employee ratio,
- Overtime Hours,
- Time off and absence rates.
- Retention rate per manager,
- Statistics on reasons for personnel leaving,
- Employee satisfaction,
- Turnover rate.
5 Key Onboarding KPIs
We have selected five specific KPIs for the onboarding process. We will discuss them one by one in the following section.
1. New Hire Satisfaction Rate
New-hire satisfaction levels data can be obtained through the employee interviews and onboarding surveys. In fact, these are key parts of an employee experience roadmap.
2. Training Completion Rate
Regardless of its content, training constitutes an important step in onboarding new employees. Be it learning about company policies or gaining soft or hard skills needed to fulfill your role, training is key for all new employees.
Thus, it is important to know if training is being completed, and in case of a negative answer, the reasons for this situation.
3. New Hire Retention Rate
The new hire retention rate measures how many newly hired employees decide to stay in the organisation for a defined period. Thus, there is a fixed formula for calculating the new hire retention rate of your organisation. The variables that you need for calculating your employee retention rate are: the total number of new hires and total number of remaining employees.
So, to get your employee retention rate divide the number of employees that stayed with your company through the entire time period by the number of employees that started on day one. Then, multiply that number by 100.
4. Time to Productivity Rate
The time to productivity rate measures the time-span from your first day at work until you achieve the expected productive output.
For all job roles, there is an expected time to productivity rate. Of course, the role and level of seniority will be influential. So, for a very complex role, there might be a higher time to productivity rate. The same can apply to newly grad positions.
Thus, the time to productivity rate can be a solid indicator of your onboarding performance.
5. Engagement Rate
Employee engagement can be defined as your level of emotional involvement and commitment to your working organisation and its mission and goals.
The degree of employee engagement is a strong indication of the health of the employee-employer relationship and the employee’s drive to innovate and stay productive. In fact, engagement is linked to a proactive approach towards your work and is the Driving Force behind your employee performance.
A good onboarding programme should provide you with multiple social benefits. These will reflect in your engagement rate.