New employees as a percentage of total business entity employees

This measure calculates the percentage of new employees out of total business entity employees. As part of a set of Supplemental Information measures, it helps companies evaluate additional variables not covered elsewhere for the "manage new hire/re-hire" process.

Benchmark Data

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Measure Category:
Supplemental Information
Measure Id:
101340
Total Sample Size:
1,553 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are percent.

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(Total number of new hires / Number of business entity employees) * 100

Key Terms

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Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Full-time Employee, Part-time Employee, and Temporary Employee

Full-time Employee

For the purpose of this survey, a regular full-time employee is hired for an indefinite period of time and is normally scheduled to work forty hours per week. Appointment is continuous, subject to satisfactory performance and availability of funding.

Part-time Employee

For the purpose of this survey, a regular part-time employee is hired for an indefinite period of time and is scheduled to work less than forty hours per week.

Temporary Employee

A temporary employee is employed for a finite period of time, to fulfill a time-limited role, or to fill the role of a permanent employee who is absent from work. The length of time an employee can work for the organization and be considered a temporary employee may be governed by employment legislation.

Business Entity

For survey purposes, a business entity is defined as an entity that:

  1. performs significant aspects of the processes for the surveys identified, or
  2. is part of a cost or revenue center within the company.

Within your organization, diverse departments may be geographically co-located, with closely integrated operations that form part of one "business entity" which may be a great distance apart. When trying to determine if related parts of your operation should be considered a single business entity, look for the following characteristics:

  • Do they operate closely together?
  • Do they serve many of the same customers?
  • Do they support the same region or product group?
  • Do they share any performance measures?
  • Is data meaningful at a consolidated level?

Examples of business entity definition:

  1. A general ledger accounting unit located in Germany has two groups. One performs general ledger accounting for the corporate headquarters, which has three business units. The other group does general ledger accounting for one of the three business units. In spite of their geographic co-location, their roles are substantially different and consolidating their data into a single response would make it less meaningful. Each group should be treated as a separate business entity.
  2. Three business units within a corporation use a shared services center for accounts payable and expense reimbursement, but are self-supporting for the other financial processes. The best approach is to make the shared services centre a separate business entity for accounts payable and expense reimbursement, and to retain the three original business units for the other financial processes.
  3. A global manufacturing company has five plant locations, each manufacturing product and each with its own logistics operations. For purposes of completing a manufacturing and logistics survey, they should be treated as five separate business entities.

Measure Scope

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Cross Industry (7.2.1)

  • 7.2.4.1 - Draw up and make offer (10463) - Compiling job-related information for the selected candidates in order to make up a job. Include information about the job description, reporting relationship, salary, bonus potential, benefits, and vacation allotment.
  • 7.2.4.2 - Negotiate offer (10464) - Negotiating an offer with selected candidates. Discuss the job offer with the candidate to ensure a mutual understanding.
  • 7.2.4.3 - Hire candidate (10465) - Wrapping up the process for hiring candidates. Agree to all hiring terms and conditions. Have the candidate accept and sign the job offer.