Home
Back
New Hire Turnover Equation:
| From: | To: |
The New Hire Turnover Rate measures the percentage of new employees who leave the organization within a certain period after being hired. It's a key HR metric that helps assess recruitment effectiveness and onboarding success.
The calculator uses the New Hire Turnover equation:
Where:
Explanation: The equation calculates what percentage of new hires left the company during a specific time period (typically within the first year).
Details: Tracking new hire turnover helps identify problems in recruitment, selection, or onboarding processes. High turnover rates may indicate mismatched expectations, poor cultural fit, or inadequate training.
Tips: Enter the number of new hires who left and the total number of new hires during the same time period. Both values must be positive numbers, and total hires cannot be zero.
Q1: What time period should I use for this calculation?
A: Typically, new hire turnover is calculated for the first 90 days or first year of employment, but you can use any relevant period.
Q2: What is a good new hire turnover rate?
A: Industry benchmarks vary, but generally rates below 15% are considered good, while rates above 30% may indicate serious issues.
Q3: Should voluntary and involuntary turnover be separated?
A: For deeper analysis, yes. Voluntary turnover (quits) may indicate different issues than involuntary turnover (terminations).
Q4: How can we reduce new hire turnover?
A: Improve job descriptions, enhance selection processes, strengthen onboarding programs, and ensure realistic job previews.
Q5: Should we include all departures or just permanent employees?
A: Best practice is to include all new hires who left, including temporary and contract workers if they were part of your hiring numbers.