Problems heating up pans on an induction hob
Any electrical device that is used to maintain a constant temperature (ovens, induction hobs, immersion cookers, even thermostat-based space heaters) does so by first sensing whether the current temperature is below the set temperature. If so, the heating element/induction coil/etc... is turned on. Once the temperature reaches some upper threshold, the element is turned off again, and the cycle repeats.
Different devices have different ranges of thresholds. For instance, the temperature in an oven may vary by as much as 30°C, while an immersion cooker will keep the temperature range withing 1°C or so.
The reasons your hob overshoots the set temperature, then takes some time to stabilise, can be:

The hob is built to operate on a much wider range of temperature thresholds than you thought.
The hob is built to keep a pan with contents at a constant temperature, but heats up too powerfully for an empty pan (i.e., the hob makes the 'assumption' that there is something in the pan, and delivers power based on that assumption).
There is some distance between the hob's temperature sensor (often in the center) and the induction coil (a ring some distance from the center), and your pan does not conduct heat instantly. Then, while the pan has reached target temperature at the spots closest to the induction coil, it is still below the target temperature at the hob's sensor, causing the hob to add more power.

Using an empty pan will make points 1 and 3 worse as well. You can check if any of these are occuring in your case by heating a pan of water, and taking the water temperature (points 1 and 2), or by moving your surface thermometer to different spots in the pan (point 3). If the issue turns out to be 1, there is not much you can do. If it's either 2 or 3, you can mitigate the problem by starting to cook (almost) immediately.
Alternatively, you could force a slower heating curve by starting the hob at its lowest temperature and manually changing the temperature setting every minute or so.