The ROI of Onboarding: Measuring Success with Solutions

Onboarding plays a vital role in any organization as it acts as a bridge between the hiring process and an employee’s complete integration into the company’s culture and work environment. An executed onboarding program establishes a foundation for employee success and contentment. However, quantifying the return on investment (ROI) of onboarding can present challenges for companies. In this blog post, we will explore solutions for assessing onboarding success and how they contribute to ROI calculations.

Defining Onboarding

Before delving into measuring the ROI of onboarding, it is essential to comprehend its core elements. Employee onboarding solutions encompass more than paperwork and training; they involve a process that includes orientation, training, mentorship, and assimilation into the company’s culture. Effective onboarding programs ensure that new hires swiftly become engaged employees who can significantly contribute to the organization’s achievements.

Assessing Success: Key Metrics

When evaluating the effectiveness of an onboarding program and calculating its ROI, having metrics in place is crucial. Here are some key metrics that can help gauge the success of an onboarding program:

  1. Time to Achieve Productivity: This metric measures how long it takes for hired employees to reach productivity in their respective roles. By comparing this time period to industry standards, organizations can evaluate whether their onboarding program is helping employees achieve peak performance quickly.
  2. Employee Engagement: Engaged employees display a level of commitment to their work, exhibit increased productivity, and experience turnover rates by assessing employee engagement, and after onboarding, organizations can measure the impact of their onboarding program on workforce satisfaction.
  3. Employee Retention: Retaining top talent is vital for the success of any organization. By monitoring the retention rate of employees who have undergone an onboarding program, organizations can determine the effectiveness of their program in retaining employees.
  4. Customer Satisfaction: An executed onboarding program ensures that new employees possess an understanding of the company’s products or services and are capable of effectively serving customers. Assessing customer satisfaction and correlating it with the onboarding process can help determine if employees are adequately equipped to meet customer needs.
  5. Training Costs: An integral part of onboarding involves training employees. By tracking the cost of training per employee, organizations can evaluate the return they are receiving from their investment in training materials, resources. and trainers.

How to measure the success of Onboarding solutions

Now that we have identified the factors to measure the success of onboarding, let’s explore some solutions that can assist organizations in monitoring and evaluating these metrics;

  1. Gathering Feedback: Regularly seeking feedback from employees, supervisors, and mentors through surveys can offer insights into the effectiveness of the onboarding process. Asking questions related to training quality, job expectations, and support can help identify areas for improvement and gauge employee satisfaction.
  2. Monitoring Performance: Establishing performance metrics tailored to each role can help evaluate a hire’s progress and their ability to become productive in a manner. By setting goals and tracking progress over time, organizations can assess whether their onboarding program is effectively preparing employees for their responsibilities.
  3. Conducting Exit Interviews: Carrying out exit interviews with departing employees can provide insights into how the onboarding process impacts retention rates. Understanding the reasons behind employee turnover helps identify any shortcomings in the onboarding program that need attention for hires.
  4. Integration with HRIS: Incorporating Human Resources Information Systems (HRIS) into the onboarding process automates data collection and analysis simplifying tracking and measurement of onboarding success. HRIS streamlines procedures, centralizes data, and generates reports on metrics, offering an overview of the effectiveness of the onboarding process.
  5. Comparing with industry standards: Comparing an organization’s onboarding metrics with industry benchmarks is crucial for obtaining an assessment. Industry benchmarks provide insights into an organization’s performance in relation to peers and help identify areas that could benefit from improvements.

Formula to calculate ROI

Once organizations have collected data and evaluated the effectiveness of their onboarding program, they can determine the return on investment (ROI) associated with it. To calculate ROI, organizations use the formula;

ROI = (Net Profit / Investment) x 100

Net profit refers to the profit generated by new hires, while investment encompasses all costs related to the onboarding process, including recruiting expenses, training costs, and expenditures on onboarding software. Calculating ROI enables organizations to evaluate the impact of their onboarding program, and helps them make well-informed decisions about its future.


In conclusion, measuring the ROI of onboarding is vital for organizations wishing to assess the effectiveness of their programs and make data-driven choices. By establishing metrics, implementing solutions to track and measure these metrics accurately, and calculating ROI, organizations can ensure that they are investing in onboarding programs. It’s important to remember that effective onboarding goes beyond paperwork; it represents an investment in employee success and satisfaction.