Is your onboarding process effective? Even if you think the answer is yes, do you have the data to support it? According to a BCG study, onboarding has one of the greatest impacts on a company’s profit margins and profitability.
If you think your onboarding process could be improved, chances are it’s already negatively impacting your organization and its employees. But how do you determine if your current process could be improved? One way to start reevaluating your onboarding process is with five HR metrics. Let’s dive into each and see how they help HR professionals onboard employees successfully.
Track employee happiness
There are a number of ways to track employee happiness. A lot of companies send out anonymous surveys or hold confidential one-on-one meetings to track how happy employees are with their current position. Turns out, happier employees are more productive and much more inclined to stay with their current employer.
Determining if employees are happy is the first step. If you truly care about improving your onboarding process and increasing retention rates, you’ll have to address problems that are creating unhappy employees.
Employee happiness is also linked to the relationships coworkers have with one another. Creating an environment of cross-collaboration and open communication are great ways to make new hires feel welcome and involved in their new position.
Monitor turnover rates
It should come as no surprise that a spike in turnover usually means one of two things: one, your business is downsizing and laying off employees they deem nonessential, or two; employees are unhappy and looking for jobs elsewhere. Tracking turnover is an important metric your HR department should be monitoring, but be sure to note the difference between voluntary and involuntary turnover.
Involuntary turnover may indicate you have a recruiting problem or are making an effort to downsize. Voluntary turnover, especially during an employee’s first few months on the job, suggests an onboarding problem. Chances are if you notice a higher uptick of voluntary turnover with newer employees, you need to improve new hire training, better integrate employees into teams, help clear up goals and expectations, or refine your current job descriptions.
An abnormally high turnover rate is not ideal, but it’s important to remember that you don’t want an abnormally high retention rate either. Retention rates high above the average could indicate you’re holding onto employees who are unmotivated or content to remain a low performer.
Note who is leaving your company
It’s just as important to note who individually is leaving your company as it is tracking overall turnover rates. Some employees create a much larger splash once they leave than others, and if your best or most well-liked employees consistently leave, you should make an effort to find out why. Exit interviews can help. They may be uncomfortable, but if you implement some of the feedback you receive, they can be an invaluable resource to your company.
Here are some questions you should ask in an exit interview:
Why did you start looking for another job?
What would you change about the organization?
What would you change about your former department?
What advice would you give to your former team? To managers?
What are the biggest problems you see in this organization?
What would make this a better place to work?
Would you work here again? Would you recommend open positions at our organization to others?
Measure new employee satisfaction
Measuring new employee satisfaction is a great metric to gauge your onboarding process. Similar to employee happiness, new employee satisfaction will show how well a new hire is integrating into their new position. Be sure to ask how they feel about their new work conditions, their coworkers, benefits, and more.
Anonymous surveys or informal conversations are great ways to track a new hire’s sense of satisfaction with their new role. If their answers are lackluster or you fear they may be ready to jump ship, see what issues you can address for them. Are they overwhelmed with the amount of work they’ve been tasked with? Are they struggling to navigate your company’s benefits plan? Take some time to help, it’s a worthwhile investment.
Track retention rates among departments and managers
If one department or manager has a higher turnover rate than other managers in your company, it’s likely a red flag that something needs to change about their management style.
One way to address this red flag is to see what other managers in your organization with high retention rates are doing to build positive, lasting relationships with their employees. Not only will this help with a single department, but a successful manager’s style could be initiated company-wide to reduce turnover across the business.
Implementing and measuring the five metrics we’ve discussed is a simple, inexpensive way to improve your onboarding process. If you’re ready to ensure a seamless transition from new hire to employee, Dominion is here to help. Our Onboarding software is designed to eliminate first-day headaches and drastically reduce your paper processes. Request a demo to get started!