New Hire Turnover Rate
What is New Hire Turnover Rate?
This metrics calculates the percentage of new hires who leave the company in a given period of time. Some companies look at the the percentage of hires who pass their probation period or the percentage of new hires who leave the company in their first year.
How to calculate New Hire Turnover Rate?
# of new hire separations for the selected period of time / total # new hires for the selected period = New Hire Turnover Rate
Tracking New Hire Turnover Rate gives you an indication of the effectiveness of your recruitment process. If new talent sticks around for longer, it means you can keep your costs under control and focus more on nurturing existing employees.
Focusing only on New Hire Turnover Rate could prevent you from noticing bigger employee movement trends. For example, if your overall turnover rate is going up, this could indicate that your management is not as effective as it could be. You’ll probably want to identify and address some internal issues.
How should you visualize New Hire Turnover Rate?