New Hire Time to Productivity: How to Improve Employee Performance
After organizations spend months-on-end in the hiring process, searching for the right candidate, right on the new hire’s first day, they already have one question in mind:
“When will I start to see results?”
Performance expectations are high, and there’s often pressure to get newly-hired employees up and running as soon as possible. Understandably, today’s world of ever-increasing competition and shrinking margins has put greater emphasis on the need to maximize performance from day one.
But without proper employee productivity metrics to track performance, evaluations are often subjective (mostly a pure guessing game!), and managers can’t always identify which new hire onboarding strategies are working best.
That’s where measuring new hire time to productivity comes in. Here’s what you need to know about it.
What Is New Hire Time to Productivity?
New hire time to productivity is a measurement of how long it takes for an employee to go from onboarding to being fully productive and meeting performance goals. In other words, it’s the time a new employee takes to start adding value to the company from the day they start working.
This metric is used to measure the effectiveness of onboarding strategies, and it can help managers have an objective view of how well their new-hire training and onboarding strategies are performing. That’s because supporting new employees from the get-go helps them become productive faster, and in turn, reduces time to productivity.
How Can New Hire Time to Productivity Be Tracked?
When it comes to how to measure time to productivity, there are a number of methods that organizations can use. However, the most common one is by subtracting the employee’s start date from the date they become fully productive.
Similarly, to get the total average time of new hire time to productivity, organizations can track multiple employees at once by adding the total number of days for all new hires to reach full productivity over a given time frame and dividing it by the total number of new hires.
For this to work, managers should create performance goals for new hires that must be met in a certain period of time- usually within the first few weeks or months of employment (60% of companies don’t bother setting milestones or goals for new hires, so this is crucial.)
This could range from completing specific certifications or training videos to reaching certain role-related performance targets, such as hitting a certain sales target or reaching a customer satisfaction score.
Then, measure how long it took them to reach those goals and calculate their time to productivity.
This metric can then be used to compare new hires and see how their onboarding experience is impacting their productivity. This can also be used to spot any areas of improvement and help HR leaders tweak their onboarding programs accordingly to maximize efficiency.
Pro Tip: To unify the calculation of time to productivity, it helps if the organization has a very clear definition of what “full productivity” means. This will provide everyone with an understanding of the expected goals and performance standards for new hires, making it easier to track their time to productivity and measure overall success.
Why Track New Hires Time to Productivity?
Using the new hire productivity metric isn’t only used to evaluate whether new employees are becoming productive or not. It can also be used to inform various HR decisions, providing insights into the following.
Onboarding Process Efficiency
The general rule is that the faster a new hire becomes productive, the more effective the onboarding process is. Tracking time to productivity can help organizations determine if their current onboarding program is efficient or not. Most times, the “standard” onboarding process ends up hindering new employees from becoming productive faster.