Is your organization measuring time to productivity? This metric helps you understand how long it takes for new employees to be productive. And in today's competitive business environment, it’s crucial.
Let’s look at this critical key performance indicator (KPI) and how you can start using it today.
What is time to productivity?
Time to productivity is a key business metric that measures how long it takes for new employees to be productive. It calculates the total number of days someone needs to learn a new job before they handle responsibilities independently. This KPI is vital because it goes beyond onboarding to factor in the ramp-up time people need to fully integrate into their roles.
The importance of measuring time to productivity
Measuring time to productivity is essential for several reasons. Namely, it allows you to:
- Improve onboarding: Knowing how long it typically takes someone to reach full productivity allows you to set benchmarks for future new hires.
- Provide the right resources: Calculating time to productivity makes it easier to determine what support and resources new hires need during their first few weeks on the job.
- Assess your hiring practices: Longer-than-anticipated time to productivity alerts you to potential issues in your recruitment process, allowing you to fine-tune hiring practices and find the right candidates for future positions.
Factors that affect time to productivity
Before you can measure time to productivity, it’s important to understand the factors that contribute to it. Let’s look at the biggest ones right now.
Your onboarding programs
Onboarding lays the foundation for new employee success. A structured onboarding program that combines your company's culture, values, and expectations significantly reduces time to productivity. In fact, studies show companies with effective onboarding not only improve retention by 82% but also increase productivity by more than 70%.
Your training programs
Well-designed training programs directly impact how long it takes for new employees to become productive. Training not only equips people with the necessary skills but also builds confidence. This is especially true if you invest in diverse training methods such as e-learning, mentorship and workshops.
Your company culture
Creating an environment where employees feel valued encourages them to contribute at high levels from the start. Organizations that focus on building a culture where employee productivity can thrive experience far more success than those that don’t.
Your industry
It’s important to recognize that time to productivity varies across industries, roles, and the nature of work. For example, sales positions may ramp up much faster than roles requiring extensive technical training.
Your new hire’s previous experience
The expertise a new hire brings from previous positions and workplaces directly impacts how long it takes them to become proficient. Evaluating candidates for relevant, transferable skills helps reduce time to productivity.
How to calculate time to productivity in 4 steps
When measuring time to productivity, the goal is to determine how long it takes for new hires to become fully productive in their new roles. Here’s how to do it in a few simple steps.
Step 1: Define “full productivity”
First, define what it means for someone to reach full productivity in each specific role. This is important! The specifics will look different for different roles. An entry-level position requires more mentorship than a senior one, and some jobs may have steeper learning curves than others. Decide what productivity level each person needs to achieve before you deem them fully productive.
Step 2: Track progress
Once you set expectations for each role, the next step is to track performance. Whether you use productivity monitoring software, conduct regular check-ins or collect feedback from colleagues, the goal is to check progress against the benchmarks you set in step one.
Step 3: Note when full productivity is achieved
Once an employee is considered fully productive, note the date. You’ll use this in the next step.
Step 4: Determine the time to productivity
Finally, calculate time to productivity by tallying the amount of time between your new hire’s start date and the date of full productivity (not including weekends and nonwork days). For example, if someone starts on January 8 and is fully productive by February 23, their time to productivity is 35 days.
Strategies to improve time to productivity
It’s natural for some roles to take longer than others. But overall, the goal with this metric is to lower your average time to productivity. Several strategies will help you get there.
Enhance the onboarding process
One of the most effective methods for improving time to productivity is to enhance the onboarding process. And one of the best ways to do this is by creating strong mentorship programs where seasoned employees guide new hires. In addition, make sure your onboarding material is engaging enough to captivate new hires and accelerate the learning process, making it easier for people to adapt to their new roles.
Implement effective training programs
All organizations should continually evaluate and update training programs to ensure they meet the needs of new hires. Incorporating diverse training methods, such as in-person peer learning as well as self-guided online courses, significantly boosts new employees’ confidence and competence. When in doubt, ask your current employees for feedback on their own training experiences and how to improve them for new hires.
Foster a productive work environment
Creating a workplace culture that values productivity and collaboration is essential. This involves fostering open communication and encouraging teamwork, which leads to higher levels of support for new hires. Look at it this way: By providing a supportive work environment where employees feel comfortable seeking help, you reduce any potential roadblocks that would otherwise hinder productivity. This allows new employees to thrive from the get-go.
Measure and improve time to productivity with ActivTrak
If you’re not already measuring time to productivity, now’s the time to start. This essential metric tells you how long it takes for new employees to provide meaningful contributions — both to their teams and to the organization at large. The sooner you calculate it, the faster you can start lowering it.
One of the simplest and most accurate ways to calculate time to productivity is with ActivTrak. Our productivity management software makes it easy to gauge performance. Just one glance at the dashboard is all you need! Schedule a demo to see it in action.
