How to Calculate New Hire Turnover Rate

New Hire Turnover Rate Calculator

Calculate the percentage of new employees leaving your organization within a specific timeframe.

Total employees hired during the measurement period.

New hires who left during the same period.

function calculateNewHireTurnover() { var totalHiresInput = document.getElementById("totalHires"); var separatedHiresInput = document.getElementById("separatedHires"); var resultBox = document.getElementById("resultBox"); var turnoverDisplay = document.getElementById("turnoverRateResult"); var retentionDetail = document.getElementById("retentionDetail"); // Parse inputs var totalHires = parseFloat(totalHiresInput.value); var separatedHires = parseFloat(separatedHiresInput.value); // Validation logic if (isNaN(totalHires) || isNaN(separatedHires)) { alert("Please enter valid numbers for both fields."); resultBox.style.display = "none"; return; } if (totalHires <= 0) { alert("Total new hires must be greater than zero."); resultBox.style.display = "none"; return; } if (separatedHires totalHires) { alert("Separated hires cannot exceed the total number of new hires."); resultBox.style.display = "none"; return; } // Calculation var turnoverRate = (separatedHires / totalHires) * 100; var retentionRate = 100 – turnoverRate; // Display Results resultBox.style.display = "block"; turnoverDisplay.innerHTML = turnoverRate.toFixed(2) + "%"; // Dynamic detail message based on the result var statusMessage = ""; if (turnoverRate > 20) { statusMessage = "High turnover. Review onboarding processes."; } else if (turnoverRate > 10) { statusMessage = "Moderate turnover. Keep monitoring."; } else { statusMessage = "Healthy turnover. Good retention strategies."; } retentionDetail.innerHTML = "New Hire Retention Rate: " + retentionRate.toFixed(2) + "%" + "Analysis: " + statusMessage; }

How to Calculate New Hire Turnover Rate

Understanding New Hire Turnover Rate is crucial for HR professionals and business leaders. This metric measures the percentage of new employees who leave the company within a specific timeframe—typically the first 30, 60, 90 days, or the first year of employment. A high rate often indicates issues with the recruitment process, onboarding experience, or mismatched job expectations.

The Formula

The standard formula for calculating new hire turnover is relatively straightforward:

Turnover Rate = (Separated New Hires / Total New Hires) × 100

Where:
1. Separated New Hires: The number of employees hired during the period who subsequently left during that same period.
2. Total New Hires: The total count of employees hired within the specified timeframe.

Practical Example

Let's say your company hired 50 employees in Q1 (January through March). During that same quarter, 5 of those specific new hires resigned or were terminated.

• Step 1: Identify Total New Hires = 50
• Step 2: Identify Separated New Hires = 5
• Step 3: Divide Separations by Total (5 ÷ 50 = 0.10)
• Step 4: Multiply by 100 to get the percentage (0.10 × 100 = 10%)

The New Hire Turnover Rate for Q1 is 10%. Consequently, the New Hire Retention Rate is 90%.

Why This Metric Matters

Tracking new hire turnover separates "infant mortality" (early departures) from general employee turnover. High new hire turnover is expensive; estimates suggest replacing an employee can cost between one-half to two times the employee's annual salary. Key reasons to monitor this include:

• Recruitment Quality: Are you hiring the right candidates for the culture and role?
• Onboarding Effectiveness: Are new hires receiving the training and support they need to succeed?
• Job Preview Accuracy: Did the job description match the reality of the daily work?

What is a "Good" Rate?

Benchmarks vary by industry (e.g., retail and hospitality typically have higher rates than finance). However, a general rule of thumb is that if your new hire turnover exceeds 20%, it signals a systemic problem in your hiring or onboarding pipeline that requires immediate attention.