WinningKPI - HR - KPI for Measuring of % of New Hires Achieving 12 Months Service posted in category HR KPI details: Details:
This indicator is for measuring the Employment Retention Rate; in other words, the % of New Hires Achieving 12 Months Service, in a given time period.
This is calculated by divided the % of New Hires Achieving 12 Months Service by the Total number of New Hires, in a given time period.
It is in a company’s interest to maximise this KPI, as recruitment costs are very high and losing their new employees before 12 months shows either poor performance in Recruitment practices or poor performance in Employee Retention Practices (staff training, annual appraisal, line management, salary and benefits etc).
A high performance HR Department is considered to have the skills to put practices in place that will ensure that in the recruitment and after hire period, the right actions will be taken to retained new hires for 12 months service and more.
Hence, this KPI is mostly used to measure the performance at the HR Department, however, it can also be used to measure recruitment costs over a given time period.
Formula:
Number of New Hires with 12 Months of Service (or more) / Total Number of New Hires x100
KPI Unit: %
KPI Time Frame: update annually
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
A service company measures this KPI over a 5 year period.
In total, in the past 5 years, the company has recruited around 150 new employees.
From those 150, only 70 have achieved a 12 months service and over.
Hence the % KPI is:
70/150 x 100 = 47%
The result resembles that on average half of the new recruits achieve a 12 months service. In order to increase this, the company may create longer term contracts, increase staff benefits etc.
Oana Boteanu | + | September 9, 2012 at 6:13 am
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