New Hire Turnover

New hire Turnover is a metric that calculates the number of employees in an organization that leaves the job within a year or a given period. Tracking new hire turnover is important for organizations to measure their effectiveness in hiring and onboarding an employee. When an employee leaves an organization, somewhere it concerns the company’s culture, environment, or certain areas. When an employee stays in a company for more than 2 years, it indicates that the company has efficiently maintained the balance between employees and expectations.

Why new hires leave their job so soon?

  • The job role is different from the job position: Often organizations tend to accommodate a multi-skilled employee with other roles which he/she is not hired for. Complete optimization of resources and their skills must be managed effectively. It should benefit both the parties; the employee and the employer.
  • An unhealthy relationship with reporting managers: In SMEs and large organizations, communication gaps are very common. Often organization loses good resources due to bad relationships between employees and their respective managers/team leaders.
  • Incomplete training of new hire: Many times it happens that an employee is not fully trained but expected to give results. In this case, the employee becomes dissatisfied with the job.

How to calculate new hire turnover?

Sum of the number of employees that leave in a year/quarter or month divided by an average number of employees that work within the selected period and then multiply the number you get by 100 to calculate the new hire turnover rate in percentage.

For example; your average number of employees working for a month is 150 and out of this 150, 25 employees leave, the turnover rate is; 25 / 150 * 100 = 16.67 is your new hire turnover rate.


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