New Hire Rate Calculator
The count of employees hired during the measurement period (e.g., last 12 months).
The average total number of employees during the same period.
Number of new hires who left the company within the same period (for turnover calculation).
How to Calculate New Hire Rate
The "New Hire Rate" is a critical Human Resources metric that measures the influx of talent relative to your total workforce size. It is often used alongside the "New Hire Turnover Rate" to determine not just how quickly you are growing or replacing staff, but how successful your recruitment efforts are at retaining that talent.
The Primary Formulas
There are two distinct calculations HR professionals perform when analyzing new hire data:
1. New Hire Ratio (Accession Rate)
This calculates what percentage of your workforce is comprised of new employees. It indicates organizational growth or high churn replacement.
New Hire Ratio = (Total New Hires / Average Total Headcount) × 100
2. New Hire Turnover Rate
This calculates the percentage of new hires who leave the company within a specific timeframe (usually within the first 90 days or first year). A high number here indicates problems with onboarding or the recruitment process.
New Hire Turnover = (New Hires Who Left / Total New Hires) × 100
Example Calculation
Let's look at a realistic scenario for a mid-sized tech company:
- Total New Hires (Yearly): 50 employees
- Average Headcount: 500 employees
- New Hires Who Left: 5 employees
Step 1: Calculate New Hire Ratio
(50 ÷ 500) = 0.10
0.10 × 100 = 10% of the workforce is new.
Step 2: Calculate New Hire Turnover
(5 ÷ 50) = 0.10
0.10 × 100 = 10% of new hires did not stay.
Why Monitor These Metrics?
- Budgeting: High new hire rates increase training and onboarding costs.
- Culture Health: If the New Hire Turnover rate is high, it suggests a mismatch between the job description and the actual role, or a poor cultural fit.
- Growth Velocity: A high New Hire Ratio without high turnover indicates healthy organizational scaling.
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resultHTML += '
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// Only show turnover calculation if meaningful data exists
if (newHires > 0) {
resultHTML += 'New Hire Ratio (Accession Rate)
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resultHTML += '' + newHireRatio.toFixed(2) + '%
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resultHTML += '' + newHireRatio.toFixed(2) + '% of your total workforce consists of new hires.
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resultHTML += '';
resultHTML += '
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}
// 6. Display Result
resultDisplay.style.display = 'block';
resultDisplay.innerHTML = resultHTML;
}
New Hire Turnover Rate
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resultHTML += ' 15 ? '#e74c3c' : '#27ae60') + ';">' + turnoverText + '
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var turnoverContext = "";
if(turnoverRate > 15) {
turnoverContext = "High turnover. Review onboarding/hiring process.";
} else {
turnoverContext = "Healthy retention of new hires.";
}
resultHTML += '' + turnoverContext + '
';
resultHTML += '